Automakers unveil natural-gas pickups
The fuel is a cheaper alternative to gasoline, and there's plenty of it. Now if only there were more fill-up stations.
But there's another gas in the United States that's awfully cheap and in abundance: natural gas. In fact, new drilling technologies have made this country the largest natural-gas producer in the world. Why aren't automakers looking at more ways to use it?
As it turns out, some are. General Motors (GM) says it will start taking orders next month for pickups that can run on gasoline and natural gas. It will sell the Chevrolet Silverado and the GMC Sierra 2500 HD with a natural-gas option. One executive said that because natural gas is so much cheaper than gasoline, the new trucks could save drivers as much as $10,000 over three years, Bloomberg reports.
Natural-gas trucks are more suited for fleets. There are only about 500 natural-gas fueling stations in the U.S. open to the public, Bloomberg reports, so at this point it's tough for consumers to jump on the technology.
But as demand for alternative fuels increases, automakers and fueling stations are starting to respond.
Chrysler is expected to announce Tuesday its first from-the-factory pickup that runs on natural gas and gasoline. It will build at least 2,000 specialized Ram trucks starting in June, The Wall Street Journal reports.
People have been able to get trucks retrofitted to handle natural gas, but that's complex and requires additional costs, the Journal reports. Building in the natural-gas option at the factory reduces the friction and the expense.
"If the opportunity presents itself, we wouldn't turn our back on a CNG-powered passenger car," Chrysler executive Peter Grady told the Journal. "We aren't working on it now, but we do have it in the back of our minds."
Honda Motor (HMC) sells a passenger car that can run on natural gas, the Civic NG, at about 200 dealers starting at $26,200, the Journal reports.
Some stocks were seeing a lift Monday from the news. Clean Energy Fuels (CLNE) was up nearly 5% to $19.60 in the early afternoon, while shares of Fuel Systems Solutions (FSYS) rose more than 5% to $27.47.
The price of natural-gas futures is at a decade low, CNBC reports, trading below $2.50 per million BTUs. One reason is because inventory is very high, at about 45% above the 5-year average.
From what I've read, the cost of converting existing trucks and cars to natural gas is inflated enormously by federal and state taxes or fees not to mention a plethora of regulations. It wouldn't be a quick fix, but if Obama proposed to forego federal fees and encouraged states to do the same while simplifying regulations the high cost of conversion would be cut by about 50% at least. Of course, people with existing natural gas service to their homes could have personal LNG equipment installed to fill their cars, but again fees and regulations are in the way.
Everybody wise up and contact your local, state and federal government representatives.
Actually many countries use natural gas as an auto fuel. Thailand requires all taxis to run on it in Bangkok and it seems to work fine although the tank takes up a lot of the trunk space in a small taxi.
Once out of the city the taxi can use either fuel, gasoline or natural gas, with a flip of the switch on the dash.
Usual suspects: To get to Hydrogen, they have to crack NG. Might just as well burn the NG and forget about spending money to get the hydrogen out. In the mean time the real job makers, entrepreneurs, will find other sources of fuel. The Gov't needs to keep their hands out of it.
OhBummer. I cant fill my tank because it costs so much, but i can't but a CNG/or change my car to that because its to expensive.
No rail service to your job? I guess you'll need to get a job within walking distance, because nature doesn't care. And what will natural gas cost when we start to use it on a large scale as a transportation fuel? We'll be painted into a corner once again. Future trains could run on electricity, produced by the sun, wind and hydro, much more efficiently than electric cars. And then there is always the option of walking or riding a bike.
The problem with natural gas is that is a gas, not a liquid at standard temperature and pressure. Gases are less energy dense than liquids and it takes extremely high pressure to liquify natural gas. It will not replace gasoline as a transportation fuel. Move to rail and abandon the combustion engine automobile.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
As geopolitical tensions threaten to spin out of control, investors are wondering how best to position their portfolios for the global turmoil.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.