I read an investors column produced by Nick Hodge, called Energy and Capital, and he recently got me thinking when he shared a tidbit about an alternative energy solution that actually makes much more sense than some of the silly proposals the "professionals" on Capital Hill are floating. Here's his proposal...
Imagine filling up your tank for $5.
That's what some car owners are doing in Utah, where gas is selling for $0.638 per gallon.
The only caveat: it's compressed natural gas (CNG), not the unleaded liquid stuff we're used to.
According to the Natural Gas Vehicle Coalition, Utah boasts the country's lowest rate for the increasingly popular fuel. But no matter where you buy it, CNG is undoubtedly cheaper than the national average price of $3.60 for regular unleaded.
So you can see why the fuel—and the cars that burn it—are rapidly growing in popularity. Private ownership of natural gas cars and trucks in Utah has grown from basically zero to over 5,000 vehicles in just a few short years.
Is CNG a viable alternative fuel source? Let's look closer.
First off, Compressed Natural Gas (CNG) is a combustible, gaseous mixture of simple hydrocarbon compounds, primarily methane. It's usually extracted from gas and oil wells. Smaller amounts are derived from supplemental sources such as landfill gas and coal-derived gas. Large deposits exist in more than half of the 50 states. It was classified as an alternative fuel by the Energy Policy Act of 1992, and accounts for 22% of U.S. energy use and 2.2% of energy used for U.S. transportation
There were 120,500 natural gas vehicles on U.S. roads in 2004
- 98.3K in private (fleets and consumers)
- 10.7K in state fleets
- 11.4K in federal fleets
According to a Feb 2008 report published by the DOE Alternative Fuels Data Center, more than 825 natural gas fueling stations in the United States:
- 35 LNG
- 790 CNG
- 355 Public
- 470 Private
Compressed natural gas (CNG) is one of two natural gas fuels commonly seen on the road. CNG is generally used in vehicles at 3000-3600 psi (household natural gas pipe pressure is ~1-2 psi). The other form is Liquefied natural gas (LNG), made by lowering the temperature of CNG until it becomes a liquid.
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