USA Needs to Convert to NG at $3.00 per McF

Our nation should be in an aggressive move to using natural gas for auto/truck fuel, power generation and the like.  Oil and gasoline refining cost too much and wind/solar really aren't cutting it on a large scale.  Some  coal fired electric power plants appear to want to convert to NG.  I'm sure the private sector will convert when the price and timing is right.  Wouldn't cheper energy help most of our economy?  Isn't $3 per McF so cheap that drilling will soon slow down?

http://seekingalpha.com/article/316145-cheap-natural-gas-is-creatin...

Views: 1044

▶ Reply to This

Replies to This Discussion

Permalink Reply by George Brown on December 30, 2011 at 4:01am

If the conversion is going to happen, it must happen from the bottom up, not from the top down.  A country of 300 million people cannot be planned by knuckleheads in the public sector.  It will take entrepreneurs with bright ideas and investors who will be willing to risk capital. If we could get the governments, both state and federal, to quit sucking so much capital out of the market, there would be more wealth to risk and invest into such endeavors.

How many folks on this site would be willing to leverage some of their bonus and/or royalty money and band together to form a company to begin the process? Ron Eiselstein, call your office!

Permalink Reply by Sam Moore on December 30, 2011 at 5:25am

Our government does not want us using our own natural gas.  I don't know why.  To convert a truck over to run on NG cost about $5000 unless you want it EPA certified then it is $12,000.  If the roadblocks where taken out of the way the price would go way down.  Most of the natural gas dispensers are owned by the government, paid for with our tax dollars and not open to the public.  Natural gas is cleaner, safer, cheaper and domestic.

Permalink Reply by George Brown on December 30, 2011 at 6:49am

Of course the government will get in the way.  That's what government does best.  All in our best interest, of course. You know, save the children, save the ozone, save the whales, etc., etc.

The ethanol lobby is probably much stronger than the natural gas lobby, hence we subsidize a truly useless fuel source while we make it harder to use natural gas.  That's politics in 2011 for you.

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on December 30, 2011 at 6:54am

It would be a damn shame if corn prices fell back to normal so we could afford a box of Corn Flakes now and then!

Obama would rather we burned it instead of eating it I guess.

Permalink Reply by George Brown on December 30, 2011 at 7:01am

I'd like to blame Obama too but in this case the Republicans from the farm states are the ones who are most to blame. Don't look for leadership from Obama to call them on the carpet.  He's too busy trying to get every vote he can in order to survive so his wife can afford those fancy dresses and vacations.

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on December 30, 2011 at 7:09am

I hear you George. God knows the Republicans are far from innocent either.

Permalink Reply by craig on December 30, 2011 at 5:37am

One of the real bumps in this road to CNG vehicles that I see is the EPA regulations causing the cost to convert to be way too much. A 2009 F250 v8 would cost me around $6,000. I don't drive nearly enough miles to recoup the cost, even at todays prices.

Of course factory built  vehicles would be the answer to this.

Permalink Reply by mark ayers on December 30, 2011 at 6:57am
Permalink Reply by craig on December 30, 2011 at 9:18am

The problem with converting your own vehicle, at least in Pa, is the fact that your inspection garage will not pass a CNG vehicle unless it is a certified conversion. Needless to say there aren't many models certified. My 2009 f250 has a system available that has already been certified, however the cost is a touch over $6,000. Return on the investment doesn't work for me.

Now you can buy a pre-1973 car in Pa, convert it yourself and no problem as pollution control devices are not monitored on those cars.....and that is precisely what I am toying with doing in the future.

Happy New Year to All!

Permalink Reply by Sam Moore on December 30, 2011 at 11:21am

It really depends on the cost of the fuel.  Washington PA new station has a sign up for $2.99 GGE and Indianapolis sells for 99 cents.  The whole state of Utah is a $1.26 or less.  At a savings of $2.00 a gallon you are looking at about $27,000 in savings over the life of a truck and the truck will last much longer as the motor will run much cleaner. The station in Washington PA was helped along with $700,000 of tax payer money and then has the nerve to put a price like this on their NG. Their cost for the gas should be about 40 cents and they should make a profit but this is just being greedy.

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on December 30, 2011 at 11:51am

Big Oil is going to balk at the prospect of CNG replacing gasoline as long as oil is so high IMO.

How many pennies does it take to produce a $100 barrel of oil versus $3.00 mcf gas? We get raped at the pump and they are ecstatic to get a mega-huge return on a barrel of oil that costs just a few bucks to produce. Pure economics for them. Bend Over for us.

Who owns this Washington,PA station........?

Permalink Reply by bruce c on December 30, 2011 at 1:52pm

Doesn't it only take about 6 MCF of NG to equal the energy in 1 Barrel of oil.    6MCF x $3= $18 Vs $100 per Barrel of Oil

What Gives NG is only 18% of the Cost of Oil!! Why aren't we USING IT!! Is it BIG OIL or Politicians or Both !!! And it is Ours and Not Imported from the Mid East!!!

Why aren't Big Fleets like UPS, FedEx and the Post Office using NG  vehicle, this  would add Big Bucks to their bottom line??  

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service