How to Profit From the Natural Gas Boom: U.S. Production Booming

U.S. production increased by 8.8% in the first five months of 2008 compared with the same period in 2007. This is the biggest percentage increase since 1959. There is a huge difference between U.S. oil production and natural gas. U.S. oil production peaked in 1970, and is down 21% in the past decade alone. This is why you see T. Boone Pickens running around talking up natural gas as a replacement for oil.

Not only is natural gas the cleanest of the hydrocarbon fuels, but the U.S. has a lot of it.

Navigant Consulting claims there is as much as 842 trillion cubic feet of natural gas trapped in shale in the U.S. That’s enough to meet four decades of current demand.

How to Profit From the Natural Gas Boom: Natural Gas Cars

Utah has developed the public infrastructure for natural gas pumps. You can fill up your car at 82 cents-a-gallon equivalent (compared to $3.50 per gallon of traditional gasoline).

This has caused a sales boom in the Civic GX from Honda, the only car company currently selling natural gas cars to the public. The Civic GX fills its tank in your garage using a slow fill method from your gas line. It takes about five hours to fill up and will drive for 200 miles.

The governor of Utah converted his state-owned SUV to natural gas using his own money.

According to the Energy Department, there are 8 million natural gas vehicles operating worldwide, but only 116,000 or so in the United States — most of these vehicles are used by state or corporate fleet. I know Baltimore has switched over from diesel buses to natural gas. (I know this because that diesel stink doesn’t flow in the vents anymore when I’m trapped behind them.)

Peterbilt has been selling a Model 320 with the Cummins-Westport natural gas engine, which has a liquid natural gas fuel system, for the past four years. It also offers a dual-fuel (diesel and liquid natural gas) Caterpillar engine.

If you are in the trucking business, your biggest expense is fuel. This country needs a national network or filling stations (both compressed natural gas and liquid natural gas).

Natural gas is the only viable long-term energy solution for transportation. With a new man in the Oval Office, I predict that we’ll see a natural gas infrastructure buildout announced in his first 100 days in office.