Monday, November 30, 2009

Why I bought a CNG fueled vehicle

  1. Fuel costs is <$1.50 per gallon equivalent now, while gasoline is >$2.40/gallon.  Futures of crude oil and natural gas indicate that this price disparity will continue for years.  The natural gas price runup to $14/Dth in 2008 caused producers to find enormous natural gas supplies in the Fayetteville, Marcellus, Haynesville, Eagle Ford, and other shale plays.  The increase in natural gas reserves is huge and the recognition of this supply is reflected in the natural gas futures price.
  2. Abundance of domestic natural gas - What happens if everyone buys a CNG fueled vehicle?  If 50% of the 27 quadrillon Btu's consumed in the US transportation sector were converted to CNG, it would increase the natural gas consumption by 60%.  Given the large domestic natural gas supply and existing distribution infrastructure, this seems feasible - at the price point of current futures.
  3. Federal and Oklahoma income tax credits fully fund the incremental cost of the Honda Civic GX over the gasoline powered equivalent Civic LX ($6,900). Note this is a "credit", not a "deduction".
  4. Sufficent number of CNG fueling locations for nearly all my travels (see cngprices.com).  Given previously stated advantages and the cleaner burning qualities and lower greenhouse gas emissions of CNG, I'm expecting adoption of CNG fueled vehicles to accelerate, which will drive construction of even more CNG fueling dispensers.  Since the natural gas distribution system is already in place, all that is required to setup a new fueling station is a natural gas compressor system, which can be substantially funded with federal and state tax incentives.
  5. CNG technology is here now; batteries to fuel electric or plug-in hybrids are still in development.  Even when available, the Chevy Volt's batteries will weigh about 400 pounds and contain the equivalent energy of a gallon of gasoline.  I think batteries could eventually be a good alternative - they would achieve the objective of switching the US transportation fuel from foreign energy supplies to domestic (wind, coal, natural gas, nuclear, hydro, solar, etc.).
  6. A CNG fuel tank in the trunk is safer than hauling around gasoline in a plastic tub.  Watch these videos of intentional CNG distress (Drop the car video, Dynamite video, Gun video), then ponder these questions about gasoline:
    1. Why are water heaters that are located adjacent to or in garages elevated?
    2. Why is use of a cell phone while refueling with gasoline prohibited? (see this advisory)
    3. In a car crash, where does most of the gasoline end up?
    4. Would anyone consider plumbing their house with gasoline?
Other sources:

Sunday, November 29, 2009

Now a proud owner of a 2010 Honda Civic GX

Finally did it. I purchased a 2010 Honda Civic GX from Joe Marina Honda on Friday. - Craig




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Thursday, November 19, 2009

Headed to work



Love my Mazda3! (Many folks mistakenly think that my vehicle is a camel, so don’t feel alone.)

Craig

Tuesday, November 17, 2009

Still trying to buy a car....

Test drove the 2008 Impala that Tulsa Gas Technologies has for sale. Great car with lots of power, but the federal credit is only $2,500 versus $4,000 for the Honda Civic GX. So, then I had a lead on a GX from California, but that deal fell through.

I'm still committed - just trying to get the right deal!! Meanwhile, the natural gas bills are in Congress still, Impco says they will be distributing the home fueling system sometime in the first quarter of 2010. - Craig