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January 12th, 2010

Fuel option touted

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Fuel option touted
Jeff Moore • jeffmoore@theadvertiser.com • January 12, 2010
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Dozens of fleet operators looking to save money on fuel got an introduction to a cheaper and cleaner alternative Monday.
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Representatives from the Louisiana Oil and Gas Association and Apache Oil Corporation offered a crash course in compressed natural gas Monday at the Louisiana Immersive Technologies Enterprise.
About 50 fleet operators from the public and private sectors attended the meeting — an encouraging step toward a goal of converting at least 50 vehicles to CNG by year’s end.
“We want compressed natural gas to be part of your thought process,” said LOGA vice president Gifford Briggs. “That’s the only way this is going to move forward.”
Apache has committed to build a CNG filling station in Lafayette — provided local companies and governments will pledge to convert at least a portion of their fleets from gasoline and diesel.
Apache Vice President of Governmental and Regulatory Affairs Obie O’Brien said the station could be up and running within a year if at least 50 vehicles pledge to use it.
CNG technology has existed for years, but is recently gaining popularity due to advances in natural gas production and a push for alternative fuels.
About 100,000 U.S. vehicles are currently running on CNG, and there are more than 1,000 filling stations, including four in Baton Rouge.
One obstacle to improving those numbers has been the cost of converting vehicles to CNG. Installing a CNG system in a heavy-duty pickup truck can cost more than $10,000, Briggs said.
But recent state and federal tax incentives can cover 50-100 percent the cost of conversion.
The amount of CNG equivalent to a gallon of gallon sells for $1 cheaper, allowing fleet operators to pay off the cost of conversion within 2-3 years, Briggs said.
“Hopefully this will help the oil and gas industry, and help all the small communities in town that have problems and struggle with their fuel bill,” said State Sen. Nick Gautreaux, D-Abbeville, co-author of legislation that increased tax credits for alternative fuel vehicles and infrastructure.

Gifford Briggs – Louisiana Oil & Gas Association

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Dozens of fleet operators looking to save money on fuel got an introduction to a cheaper and cleaner alternative Monday.

Quantcast

Representatives from the Louisiana Oil and Gas Association and Apache Oil Corporation offered a crash course in compressed natural gas Monday at the Louisiana Immersive Technologies Enterprise.

About 50 fleet operators from the public and private sectors attended the meeting — an encouraging step toward a goal of converting at least 50 vehicles to CNG by year’s end.

“We want compressed natural gas to be part of your thought process,” said LOGA vice president Gifford Briggs. “That’s the only way this is going to move forward.”

Apache has committed to build a CNG filling station in Lafayette — provided local companies and governments will pledge to convert at least a portion of their fleets from gasoline and diesel.

Apache Vice President of Governmental and Regulatory Affairs Obie O’Brien said the station could be up and running within a year if at least 50 vehicles pledge to use it.

CNG technology has existed for years, but is recently gaining popularity due to advances in natural gas production and a push for alternative fuels.

About 100,000 U.S. vehicles are currently running on CNG, and there are more than 1,000 filling stations, including four in Baton Rouge.

One obstacle to improving those numbers has been the cost of converting vehicles to CNG. Installing a CNG system in a heavy-duty pickup truck can cost more than $10,000, Briggs said.

But recent state and federal tax incentives can cover 50-100 percent the cost of conversion.

The amount of CNG equivalent to a gallon of gallon sells for $1 cheaper, allowing fleet operators to pay off the cost of conversion within 2-3 years, Briggs said.

“Hopefully this will help the oil and gas industry, and help all the small communities in town that have problems and struggle with their fuel bill,” said State Sen. Nick Gautreaux, D-Abbeville, co-author of legislation that increased tax credits for alternative fuel vehicles and infrastructure.