Louisiana Oil & Gas Association – By: Don Briggs -

The stage is set for the transformation from an oil supplied transportation system to a natural gas supplied transportation system.  A year ago T. Boone Pickens went on the world stage using his own money campaigning for the “Pickens Plan”.  Part of the Pickens Plan was the use of CNG (compressed natural gas) powered vehicles to wean the U.S. off the ever-growing imports of foreign oil, which has grown to 70% of U.S. consumption at a cost of $400 billion annually.

For decades every U.S. President has been warned of the national security risk of growing oil imports, all the way back to President Truman when imports were at 20%.   EIA (Energy Information Administration) projects continued growth in U.S. oil demand and imports.  In another ten years we could easily be importing 75% of our demand at an even greater cost.  However, this does not have to happen.

The U.S. has an abundance of natural gas. Last month the Potential Gas Committee, a natural gas think tank, released a report estimating gas resources in the U.S. have surged by 35%, due to new technologies that have unlocked domestic supplies of the clean burning fuel.  The Potential Gas Committee estimated gas reserves rose to 2.07 quadrillion cubic feet in 2008.  The report confirms the Department of Energy estimates of a 100-year supply of natural gas.

It only makes sense that NATURAL GAS is the fuel of the future, or should I say the immediate future.

•    98% of the natural gas used in the United States is produced in North America
•    The cost of CNG currently averages up to 40% less than an equivalent gallon of gasoline
•    American natural gas producers control ALL of our needed reserves for natural gas compared to the U.S. control of 4% of the world oil reserves
•    CNG is by far the environmental answer for America; natural gas vehicles show an average reduction in ozone-forming emissions of 80 percent compared to gasoline vehicles.

The transformation from gasoline-powered vehicles to natural gas won’t take place overnight.  There are over 9.5 million natural gas vehicles worldwide.  Argentina, Brazil, Iran, Pakistan, lead the world in natural gas vehicles with one million or more vehicles.  The U.S. has a mere 100 thousand. The kicker is INFRASTRUCTURE, where do you fill up and how often.

In the 1989 movie Field of Dreams, the catch phrase was, “If you build it, they will come.”  Fueling stations around the U.S. will have to be built in the years to come for consumers to feel comfortable in purchasing CNG vehicles or purchasing conversion kits for their vehicles. In the meantime the conversion of FLEET vehicles will be a big part of the instant growth in CNG Vehicles.  AT&T recently announced converting nearly 8,000 vehicles to CNG in the next five years.  Also many cities plan to convert their fleet vehicles and public transportation systems.

Louisiana is doing its part, not only as a major producer of natural gas but providing incentives for consumers and industry to convert to CNG vehicles.  This past week, Governor Jindal signed HB 110.  HB 110 increases the existing income tax credit from 20% t0 50% for purchase of qualified clean burning motor vehicle fuel property; includes equipment installed on a motor vehicle; includes property directly related to the delivery of an alternative fuel.  The legislation was authored by Representative Jane Smith and Senator Nick Gautreaux and strongly supported by industries throughout the state. CNG fueling stations will soon become more readily available as will CNG vehicles for purchase.