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Fantastic news! Apparently not every politician in Washington, DC is asleep at the wheel. Dan Boren (D-OK) introduced H.R. 1835, The New Alternative Transportation to Give Americans Solutions Act (or “NAT GAS” Act), to the 111th Congress on April 1, 2009. This bill contains robust support for natural gas transportation initiatives. Key components are:

  • Title I: Promote the purchase and use of NGVs with an Emphasis on Heavy Duty Vehicles and Fleet Vehicles
  • Title II: Promote Production of NGVs by Original Equipment Manufacturers
  • Title III. To Incentivize the Installation of Natural Gas Fuel Pumps and Service Stations and Depots and Domestic LNG Production Facilities for Small Energy Producers
  • Title IV: Natural Gas Vehicles (Not later than 2014, at least 50% of all new vehicles purchased by the US Government shall be capable of operating on natural gas.)

The bill contains tax credits for manufacturers and buyers of NGVs as well as for businesses that build natural gas refueling infrastructure.

The full text of the bill can be viewed here.

Introduction of a bill is the first step in the legislative process. Bills and resolutions first go to committees that deliberate, investigate, and revise them before they go on to general debate. The majority of bills never make it out of committee. This bill was referred to three committees:

The members of each of these committees can be found in the links above.

This type of legislation promoting natural gas transportation is exactly what the United States needs right now. If you believe as I do the biggest threat to the American economy and American democracy is peak oil combined with America’s foreign oil addiction, please contact the members of these committees and voice your support for this bill! At a minimum, please contact those members from your home state.

Passage of this bill would have numerous benefits for all Americans. This bill would:

  • Reduce foreign oil imports and keep our energy dollars at home
  • Revitalize America’s natural gas and energy industries
  • Revitalize America’s automobile industry
  • Create millions of new jobs
  • Increase energy royalty payments to tens of thousands of American farmers and landowners.
  • Drastically reduce CO2 and gasoline particulate emissions.
  • Reinvigorate moribund American equity markets.
  • Create an American energy foundation for a future of extended prosperity, capitalism, self determination, democracy and freedom.
I want to list the cosponsors of this bill:

These fine folks should be congratulated! You all should contact your local representatives and ask them why they were not a cosponsor of this bill.

The investment angle on such legislation is obvious: producers of US natural gas like Chesapeake Energy (CHK), ConocoPhillips (COP), and British Petroleum (BP) would be strong beneficiaries of these policies. Manufacturers of natural gas compressors like General Electric (GE) and Ingersoll Rand (IR) would see large increases in orders. Honda Motor Company (HMC), maker of the Honda Civic GX NGV and shareholder in Fuelmaker (the manufacturer of the “Phill”), would also benefit. And don’t forget Clean Energy Fuels (CLNE). Passage of this bill might even prompt consideration for an investment in the natural gas ETF UNG.

Disclosures: The author owns COP.
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This article has 54 comments:

  •  
    Fitzman,

    That is great news, finally less talk and more action in Washington on the NGV front.

    Another good investment would of course be Exxon-Mobil who is pioneering many new technologies in tight gas and shale gas extraction. Here is a blurb from the XOM website.

    "ExxonMobil technology has opened up so-called “unconventional” energy resources such as tight gas, heavy oil and oil sands — which previously were considered inaccessible or too costly to recover. For example, in Colorado’s Piceance Basin, ExxonMobil’s Multi-Zone Stimulation Technology (MZST) has opened up tight gas resources by allowing operators to create fractures in reservoir rock at a more rapid rate than conventional technology so gas can flow more easily. Using MZST and our Fast Drill Process, ExxonMobil is increasing recovery and production rates at Piceance while reducing development costs and our environmental footprint. Breakthroughs such as these have contributed to a recent increase in U.S. natural gas production"
    Apr 05 08:42 AM | Link | Reply
  •  
    This has to happen, IMHO, as we are going to have to use more natural gas. T. Boone has it right. 'It's cheap, it's clean, and it's ours!' What more do you need to know.
    Apr 05 09:24 AM | Link | Reply
  •  
    I hope HR1835 has a chance for going forward because the domestic nat gas producers & service industry are going to take a big hit from Obama's budget. People should read the article published by The Motley Fool on March 25th, titled "Obama's Plan To Punish Big Oil Will Backfire". His budget will eliminate $31.5 billion of tax incentives that domestic nat gas production now receive. The hardest hit will be the shale producers, all the domestic new technology stuff that should be encouraged. Maybe if the "Nat Gas Act" passes, it will offset the damage done by Obama's budget. A company that I like alot to benefit from nat gas transportation is Fuel Systems Solutions FSYS.
    Apr 05 10:15 AM | Link | Reply
  •  
    redbaron: you're on the money... it's cheap, clean & most importantly;
    "ours..." t. boone's constant message has finally reached an
    audience that can make it happen: "big time..."

    anne
    Apr 05 10:41 AM | Link | Reply
  •  
    FITZMAN--

    KEEP UP THE FOCUS; THE SUBJECT WILL GET THE MOMENTUM NEEDED.

    interesting item on subject, 4/02/09 blog entry by robert rapier-- his I R SQUARED website. he references recent book by Downey. i recommend recent book by stephen leeb also. his focus on interdependencies of ALL commodities and potential impact on survival/lifestyle.

    Apr 05 10:58 AM | Link | Reply
  •  
    Hey Mike, H.R. 1835 is ONE of 456 Bills waiting for House Committee on Ways and Means Members to work on.
    (yes, I counted them)

    However Members of Congress only work on Tuesday,
    Wednesday, and Thursday, 103 days a year Max.

    The vast majority of proposed Legislation NEVER make it out of Committee.
    Forget about contacting your Congress Member.
    You are only spinning your wheels.
    They get millions of emails, snailmails, phone calls, Fax's
    and personal visits.

    They vote for what THEY want.
    The only thing that effects them is they do not get reelected.
    And that only happens if they find a boatload of cash in their Freezer.

    How much do we pay these people to help us ?
    $174,000 a year, for a 3 day work week, that comes to
    $3,346.15 per week.

    Bobby Curto
    Ft. Lauderdale






























    Apr 05 11:30 AM | Link | Reply
  •  
    longoil: yes, it certainly is great news. this is what fran was alerting me about the other day, and i got an email from CLNE since i signed up on their website for NGV related news. as far as Exxon goes, did you read the article the other day that they have picked up 28,000,000 acres of natural gas shale leases recently? i guess XOM finally agrees with Robert Hefner that natural gas truly IS abundant in the USA. since XOM is now a huge player in US nat gas, hopefully even they will support this legislation...but i am nervous about that call based on historical XOM attempts to destroy the US nat gas industry. that said, XOM better be finding out a way to make that huge investment in Qatar LNG hit pay dirt.
    regardless, how can any US investor not hold a company (XOM) that produces 4 million barrels of oil per day as we head into the era of peak oil? there is a reason XOM's stock held up so well during this "crisis"...i read one guy who said the credit default swap market has placed XOM ahead of the US gov in terms of the probability of going insolvent. just think about that!

    redbaron: right on man!

    koolsool: i'll look into FSYS, thanks for posting.

    sloweanne: yes, pickens deserves much of the credit. however, let us not restrict ourselves like pickens and simply shoot for the fleet markets for nat gas. this won't significantly reduce foreign oil imports. we need NGVs in middle class families garages. we also should replace coal fired electric plants with nat gas, another difference i have with pickens.

    fran: well, thanks for giving me a heads up on this issue the other day - i appreciate it. i always remember that one post you made on an article of mine on nat gas trans when you said, "Fitzman, we all agree. What now?". profound! haha. anyhow, HR 1835 is "what now" (remember that line in pulp fiction?). i hope people contact the president, congress and these committees so that it passes. i swear, if this bill does down to defeat, i'm gonna have to pull a michael moore or something and raise money for a documentary!!
    thanks again.
    Apr 05 11:32 AM | Link | Reply
  •  
    bobby: i believe this legislation to be so important to the future of the county tat i can not sit by and not do everything in my power to make sure it passes. i surely hope everyone is not so cynical as you and doesnt take the time to contact their representatives by phone, letter, and email to make them know they won't get their vote unless they support HR 1835.
    Apr 05 11:34 AM | Link | Reply
  •  
    Michael,

    I hope I am wrong, and that you are correct.
    It is very sad to lose faith in Congress.

    Bobby

    On Apr 05 11:34 AM Michael Fitzsimmons wrote:

    > bobby: i believe this legislation to be so important to the future
    > of the county tat i can not sit by and not do everything in my power
    > to make sure it passes. i surely hope everyone is not so cynical
    > as you and doesnt take the time to contact their representatives
    > by phone, letter, and email to make them know they won't get their
    > vote unless they support HR 1835.
    Apr 05 11:56 AM | Link | Reply
  •  
    Fitz, I have just followed your advice and contacted my congressional rep. I encourage others to do likewise. This legislation, or something similar, is necessary to push future use of natrual gas, IMHO.
    Apr 05 03:03 PM | Link | Reply
  •  
    It certainly sustains my faith in Charting. I didn't know why stocks, like MMR, LNG, TGP and CQP, were rising even as Nat. Gas was dropping.

    Now I know.

    Thanks for the Info, CLNE might survive after all.
    Apr 05 03:30 PM | Link | Reply
  •  
    Great legislation HR 1835. I've tried Illinois senator Dick Durbin several times about the T.B.Picken's program, but hear nothing. Of course he's a "corn for ethanol idiot" anyway.NG is obviously the way to go. The only way to apply pressure, is to get O'bama on board. What is this guys problem. ???
    And on another note, with the salaries these congressmen get, they should be offering to take a haircut too, since they stood by while this financial mess was being created. How about $1.00/year, per man until things settle down, instead of $174,000/yr. They expect everyone else to take a bullet. Typical egomaniac's. Blame everyone else, no accountability. They are all coward's.
    Obama's the KEY to this proposed legislation.
    Apr 05 05:29 PM | Link | Reply
  •  
    sounds like what T Boone has been pushing finally got put in writing.
    Apr 05 05:45 PM | Link | Reply
  •  
    curto: i am not saying you are wrong, i am just saying we must reward the people who sponsored such an important bill by fully supporting it.

    redbaron: good action! i am actually going to call the heads of each committee tomorrow and strongly suggest they accelerate this bill's consideration.

    conan: imagine what would happen if the bill actually passed...

    JPECK: i agree, corn ethanol is an idiotic "fuel", made even worse by the bush ethanol mandates. what is obama's problem?? good question. the guy appears to have a brain, appears to be logical, yet he keeps talking "clean coal" and has yet, as far as i know, even uttered the words "natural gas transportation". i have written him two letters so far ... not even a staffers form response. no doubt obama being on board could greatly accelerate this legislation. that said, obama is turning out to be an "energy problem" as opposed to an "energy problem solver". perhaps this will change, but the early evidence is not good.
    Apr 05 05:56 PM | Link | Reply
  •  
    Your last link to the House and Government Reform Committee is incorrect. Other wise you are right on. We need to practice the squeaky wheel method.
    Apr 05 07:56 PM | Link | Reply
  •  
    Does it make any difference that LNG is much more expensive than regular gasoline ?
    Apr 05 08:40 PM | Link | Reply
  •  
    FITZMAN--

    don't forget rahm emmanuel who sponsored similar legislation with dan boren in 2008.
    also the interested ladies from california[pelosi, boxer]. and henry waxman[this action helps waxman/obama in their case for cap and trade].
    one more stock entry--

    WPRT-- supplier of NG ignition systems, worldwide[16 wheels to autos to utility fork lift trucks]


    On Apr 05 11:34 AM Michael Fitzsimmons wrote:

    > bobby: i believe this legislation to be so important to the future
    > of the county tat i can not sit by and not do everything in my power
    > to make sure it passes. i surely hope everyone is not so cynical
    > as you and doesnt take the time to contact their representatives
    > by phone, letter, and email to make them know they won't get their
    > vote unless they support HR 1835.
    Apr 05 09:01 PM | Link | Reply
  •  
    corvettego: thanks for the heads up, here is the correct link:
    www.govtrack.us/congre...

    sugcare: yes, the differences between LNG and CNG are more than just price. in order to leverage the existing 2.1 million mile natural gas pipeline grid that goes to over 60,000,000 homes, we need to focus on CNG. that way, people can refuel this cars and trucks at home.

    fran: i wasn't aware - what happened to that bill? did it even make it out of committee for a vote? not familiar with WPRT but it sure sounds like that would be a buy if this bill passed.
    Apr 05 10:59 PM | Link | Reply
  •  
    LNG is just the Liquid form of Nat. gas for ease in storage and transport.

    M. Fitz: I can see it now. Multiple Explosions at multiple locations as " Do It Yourself" kits are sold over the Internet.

    As I understand it, the mileage provided by each Full Tank will be far less than that for Gasoline. Without Refueling stations across the country, it will matter very little if you can't get back "Home".

    CLNE is in the process of building such stations at Airports. You Can Not use existing facilities.

    Even if the Bill were passed tommorow, it would take years, hundreds of Billions and would Increase Nat. Gas prices for everyone in the process.

    I am for it as an "interim" solution not the Final Solution.

    One question, how do CO2 emmissions compare?
    Apr 06 12:19 AM | Link | Reply
  •  
    While I spend all my time writing about storage, I'm a firm believer that we need to use every available tool in the box and focus first on slowing the export of cash in exchange for oil. As that battle progresses, we can devote more attention to building out new power generating facilities and the smart grid and developing EV solutions that work. The biggest problem I see with trying to force longer term solutions into the short term is that you don't give the key technologies enough time to really mature. In my mind, this is one of those journeys of a thousand miles and I don't think any of us can do more than vaguely describe some of the mile-markers we are likely to pass en-route to the finish line. I'll guarantee that none of us can accurately describe 2060.
    Apr 06 02:35 AM | Link | Reply
  •  
    conan: i am fully aware of what LNG is. a honda civic GX does not use LNG. home refueling appliances would not use LNG. you are playing on the fears of consumers (like big oil has been doing) by your overblown safety worries. there is no data in countries where NGVs are used in quantity that NGVs are significantly more dangerous than gasoline powered cars. it's a myth, and you are falling for it. remember too, there have been many explosions (and death) at oil refineries so it's not like gasoline is 100% safe either. do it yourself CNG conversion kits are all but prohibited by EPA and state regulations - the key is building NGVs by OEMs (thus the legislation to incentivize this). the range of the Civic GX is slightly over 200 miles. there are new rectangular CNG tanks that will allow less of a space penalty that will easily increase this range to over 300 miles. you are wrong, CNLE has public nat gas fueling stations. as far as increasing prices, you act as though gasoline prices won't increase! when people in california were paying close to $5/gallon for gasoline, civic GX owners were filling up for around $2/gallon equivalent. people in Utah are filling up now for $0.88 gallon/equivalent. i never said it was a "final solution". hydrogen is, but it's not realistic at the present. as far as CO2 emissions, nat gas has 30% less than gasoline with none of the toxic particulates of gasoline. although most of your arguments are incorrect, you obviously are against natural gas transportation. so, what is your solution? keep watching the US fall into an economic abyss by our continuing addiction to foreign oil? keep fighting oil wars and funding both sides of the war on terror? keep spewing CO2 and particulates into the atmosphere? if $145/barrel for foreign oil and $4.50/gallon gasoline doesnt do it, exactly what will it take for you to realize that abundant, clean, and cheap *** US produced*** natural gas is the solution to Americans economic, environmental, and national security issues?

    johnP: i agree with your comment. my big concern is the US surviving until 2060! being a believer in peak oil, i believe if we don't signficantly (say by 50%) reduce foreign oil imports within the next 5-10 years, we're going to see huge economic and social disruptions in the US. the current "low" price of oil is very dangerous as it once again lulls the US into a false sense of "security". but nothing has changed...worldwide production appears to have reached a plateau around 86 milllion BPD, exploration and production budgets are being slashed, and the inconvenient truth of depletion rates never sleeps. so, while i am a stong supporter of EVs and longer term in hydrogen, for the very critical next 10 years, i believe the only US produced fuel that can be scaled up to signficantly reduce foreign oil imports is natural gas, and it must be used in the transportation sector. thus, why this piece of legislation is so important.
    Apr 06 09:13 AM | Link | Reply
  •  
    Fitz: I believe you meant that XOM has 28,000 acres in the shale play, not 28,000,000 acres.

    Not sure I can line up with you about XOM and other big bad "Big Oil" trying to destroy domestic natural gas. Do you know who 2 of the top 3 natural gas producers in the US are? COP and BP, two of the "Big Oil" club. Also, XOM produces a lot of gas in the US and its a critical piece of their overall portfolio. But maybe I'm missing something; can you point me in the direction of things that XOM or other "Big Oil" companies have done to harm domestic NG? I'd like to do some checking.

    What I do know is that all of the Big Oil companies have huge portions of their reserves in natural gas and a large portion of their domestic reserves and revenues come from natural gas. It will take me a while to pull the numbers together but I'll try and post them later. But generally its more than 30% and for some companies, it approaches 50%.

    There is NO SUCH THING as a "Big Oil" company. They are all "Big Oil & GAS" companies. By the way, for full disclosure, I work for one of those "Big Oil and Gas" companies and have done so for over 30 years. Right now, I'm focused on North America and spend 80-90% of my time working on natural gas prospects.

    Great news about the bill pending in congress. Hope it gets to the floor for a vote!
    Apr 06 09:42 AM | Link | Reply
  •  
    Michael, do you think this bill would help both Gov. Sarah Palin's signature project up in Alaska (AGIA) and the BP/Conoco Phillips (Denali) project?

    As a motor fuel, natgas burns cleaner than any other source except hydrogen, which is a long way off as a viable alternative.

    - Josh Painter


    Apr 06 09:48 AM | Link | Reply
  •  
    Thanks for the good news on HR 1835. Like many folks I don't have high regard for congress but that is no excuse to refrain from pushing them toward desired action. In fact quite the opposite as we MUST flood them with public pressure to support it for all the reasons discussed here. The increased use of NG is clearly an interim solution so we must likewise push to resume R&D on the IFR nuclear reactor technology to solve our need for clean electrical power while also and resolving long term nuclear waste issues.

    www.skirsch.com/politi...

    If we are going to move forward with NG powered vehicles WPRT is in a good position to grow on the heavy truck and bus front. As to hydrogen as the longer term solution consider instead boron. Tom Blees in his Prescription for the Planet advances the reusable boron fuel for vehicles idea.
    Apr 06 11:08 AM | Link | Reply
  •  
    The better IFR reactor link that has good references is:

    www.skirsch.com/politi...

    Apr 06 11:32 AM | Link | Reply
  •  
    Fitz, I am glad there are finally some members of Congress that realize that natural gas for vehicle fuel is an important part of the energy delivery system future for the US. I also applaud your persistance in getting the message out. I have to say that I told you so about Obama. His energy plan is employing a pea shooter to solve the alternate energy problem when the problem requires a 16 inch cannon. Further, he seems to prefer to cater to the single issue pressure groups, rather than solve the nation's problem. He rightly states that the nation has a structural problem that demands a large investment to solve. He then puts forth a goal of doubling the energy from alternative wind and solar in 3 years. This amounts to increasing that source from.9 of 1% to 1.8%, a trivial amount. His economic advisors don't seem to realize that the structural problem in the economy is ultimately related to the negative current account which has been increasingly negative since1991 and is approaching 1 trillion/yr. One can replace the current account verbage with operating negative cash flow. Although I like John Peterson's objective articles on energy storage, I disagree with the idea that we have multiple decades to solve the problem and as I keep repeating myself, a goal of 5 million barrels of imported oil reduction/day in five years and 10 million/day in 10 years needs to be set. Having articulated this goal, energy investment and near and long term new domestic source development would be focused and natural gas would be an obvious and leading solution.
    Apr 06 12:32 PM | Link | Reply
  •  
    This is great news Fritz, keep at it.

    One question, where is the legislation to increase availability of NG in North America?
    Do you think for a moment that the twin sisters from CA will vote for increased NG production in CA?
    How much will Henry the socialist Waxman get behind increasing NG production in CA or anywhere in the USA?

    Fritz, this is a part of a great story, the remaining part, and a necessity to our success, is increased production in the USA and Canada, the other part is nailing shut the Cap and Trade energy disaster.
    Thankfully, with the recent global cooling trends, we may be able to head off the economic disaster called C & T.
    Thanks Fritz, my emails to Congressman Campbell were just sent.
    Apr 06 01:04 PM | Link | Reply
  •  
    1. If/When Boones' schemes succeed natural gas will NO LONGER BE CHEAP; why do you think he has invested so heavily in nat gas? 2. The worst thing for the environment is consumption, not pollution. This scheme subsidizes consumption and forces enourmous economic dislocation as infrastucture is created and destroyed. The economy must be expanded in order to maintain wealth, and that is bad for the economy and the environment in the long run. Fitz will demand new measures for the new pollution and the problem will get worse like it has since his people started artificially expanding the economy 40 yeard ago.
    Apr 06 04:17 PM | Link | Reply
  •  
    Fitz: I was able to get a few data points.

    U.S. Production on a BOE basis
    % Nat Gas, % Oil/Liquids
    Shell 39%, 61%
    Exxon 42%, 58%
    COP 49%, 51%
    BP 42%, 58%
    Chevron 37%, 63%

    U.S. Proven Reserves on a BOE basis
    % Nat Gas, % Oil/Liquids
    Shell 40%, 60%
    Exxon 50%, 50%
    COP 49%, 51%
    BP 45%, 55%
    Chevron 26%, 74%

    Will take me more time to get US revenues by product. But this shows that "Big Oil" is very concerned with natural gas production as it is roughly 40% to 50% of their production and reserves. So I doubt they would be suppressing its production!
    Apr 06 06:25 PM | Link | Reply
  •  
    Mmmmark: yes, i got carried away with the zeros! thanks for the correction! wrt big oil discouraging natural gas, i was referring to historically, and it's a matter of public record in the congressional hearings on energy in the 1970s. did you read robert hefner's book "The Grand Energy Transition"? it's all in there. look at the laws the "Environmental Distruction Agency" has enacted to discourage NG transportation - big oil's fingers are all over that too. yes, i know COP and BP are big natural gas producers, but big oil has much more invested in oil and oil refineries to produce gasoline, and that's what they protect with their lobbying money. so, yeah, there is lots out there to see how big oil has discouraged nat gas transportation and even nat gas power generation. it's easy to find. but start back in the 1970s energy hearings and the statements from the Exxon VP. you are working on natural gas projects? i thought they were all being shut down because of $3.76 prices....(i am being sarcastic). i doubt XOM gets 30% of its revenue from nat gas...COP is probably the largest exposed to nat gas, and that is why it's price has contracted more. BP next. bur from a revenue and profits standpoint, i'd bet it doesn't come close to oil. one reason is, nat gas is abundant in the US! which of course is one reason i want to use it for transportation..the others being its cheap, clean, and the distribution network is already there. how can we lose?!!

    josh: conoco and BP have said they are going on with denali pipeline plans regardless of palin and the other pipeline's plans. it's interesting to note that the prudoe bay guys (COP, BP, and XOM) own and produce the natural gas that is going to fill both pipelines, so the transcanada (palin) pipeline will have to buy it from them to have something to transport. going to be interesting to see how those negotiations go since they went off on their own to build a competing pipeline. that said, if we build up our natural gas transportation sector like we should, we'll need both pipelines down the road.

    ripskii: i sent my letter (old style, with a stamp and a flag on the mailbox) to obama today:

    President Obama
    1600 Pennsylvania Ave NW
    Washington, DC 20500

    i sure hope alot of other folks do too. not sure emails have as much affect, so i do letters and phone calls on important stuff (like this). in addition to suggesting he come out strong for HR 1835 and do whatever it takes to accelerate its adoption, i also asked obama why he keeps mentioning "clean coal" and explained to him why this is an oxymoron. isn't it interesting that the candidate of the "green movement" mentions "clean coal" every chance he gets? ridiculous. is it because of illinois coal money? i dunno. i agree we need nuclear and support hydrogen fusion research dollars. still haven't looked at WPRT yet, but i believe you are the 2nd person to mention that stock.

    oldwizard: thanks for you support, and yes, you did tell me so about obama and energy. i wanted to believe otherwise, but he has been a huge dissapointment. everytime he mentions "clean coal" i just shudder. i TOTALLY agree with your stated goal of reducing 5 million barrels of imported oil within 5 years and 10 mil in 10 years. and it's not a pipedream, it is completely doable! we just need the right leadership and we need to make the commitment to nat gas transportation. that's what i loved about robert hefner's book "The GET", he spells out the entire plan and all the savings and how the cost of doing the transition is actually free since all the money that we put into it stays in the country and we'll have an energy infrastructure that will serve us for decades into the future fueled by US produced nat gas. anyhow, you were right, and i was wrong on obama. but, it's still early...perhaps something will change. if this HR1835 gets passed - that will be HUGE. no way it would have happened under "natural gas is for sissies" bush.

    jackkreg: thanks! increase nat gas in North America? jeez, we've got so much of it coming out of the shales we've got enough nat gas to last decades and the price is $3.76 and falling on NYMEX. that doesn't even count the alaskan pipeline supplies. that said, the baker huges rig count is shrinking quickly and i am sure we'll go boom-to-bust-to-boom again. but, there is now no doubt the supply is there. the haynesville shale alone may turn out to be one of the largest nat gas fields in the world. thanks for sending out the emails to your reps, so i forgive you for your "global cooling" comment.

    wisdomvsinformation: boone pickens does not OWN the natural gas transportation issue - americans do! pickens isn't a big producer of natural gas in the US - there are many many companies bigger: CHK, COP, BP, on and on. people say "nat gas prices will go up" as though they didn't recognize that foreign oil just went to $145/barrel and gasoline to $4.50!! helloooooo!! when gasoline was near $5/gallon in CA, honda civic GX's were being filled up for $2/gallon equivalent..and it was nat gas produced IN THE U.S.A instead of oil from iraq, saudi, russia, venezuela, iran. you talk about "economic dislocation" but yet you neglect to acknowledge the economic dislocations the US has experienced due to its 65% dependence on foreign oil. you might consider changing your SA username because, with all due respect, you simply haven't thought this issue through. you're appear to let your dislike of boone pickens illogically influence both your energy wisdom and the information you chose to pay attention to.

    Mmarrk: thanks for that data, but i bet if you dig deeper you'll find that the majority of Exxon's nat gas business is not in the US but in asia and the pac rim. also, the data you show is on an energy content basis, not a revenue or profits basis - correct? as far as proven reserves go, those numbers dont surprise me a bit. reading hefner's book, in the decade of the 90's, while big oil was searching for OIL, they continued to discover more natural gas reserves than oil!! that is one of hefner's reasons for believing natural gas reserves are quite possibly more that of oil and coal - combined! which is of course another reason to embrace nat gas transportation before the next peak oil spike. btw, i didn't say big oil was suppressing natural gas production, i said they were discouraging nat gas *transportation*. those are two separate issues. i'd love to see the revenue and profit breakdowns if you get a chance. btw, may i ask what part of the country are you working? shale? thanks for the posts!
    Apr 06 07:50 PM | Link | Reply
  •  
    Fitz:

    Thanks for publishing the congressional committee information regarding HR 1835. I discovered that my local congressman is on two of the committees and sent him a strong letter to support the bill and get it out of committee. If we all respond with cogent arguments in support of replacing imported oil with domestic gas it should surely have an impact on congress at this time of financial crisis.
    Apr 06 08:04 PM | Link | Reply
  •  
    ripskii: good action!!
    Apr 06 09:45 PM | Link | Reply
  •  
    Some things to consider, and everything should be considered.

    The point has been made by some, that it is much more efficient to use NG in power plants than in cars. Is this an efficient use of our natural gas suppies? NG power plants can be made more efficient than they are now, by coupling them with renewables, with fuel cells, capturing waste heat etc.
    T. Boone Pickens plan, to replace gas plants with wind farms and then run cars on the NG, doesn't quite add up.
    His investment in wind energy is a good thing, but wind with it's intermittency isn't a good match for replacing NG, which can be fired up when needed. Also, I'd rather see coal plants closed than gas plants, which are much cleaner.

    The personal transportation issue is a thorny one. I'm not ruling anything out. We obviously need some kind of near term solutions that will help transition to whatever comes next in vehicles.

    Renewables, which some of you object to, are ready to build right now, and can be built much quicker than nuclear. Coal with CCS is still experimental. Solar and wind can be built on a large scale, long before CCS will become a reality. In the ten years it would take for the first new nuclear plant to go online, or the first CCS coal, hundreds of gigawatts of renewables could be built. And by then, they will be as cheap or cheaper than fossil fuels, or new nuclear. CCS won't be cheap. Estimates for building new nuclear plants and for the price of their power have skyrocketed. Renewables will only go down in price over the next 10-20 years.
    Silicon for PV cells fell off a cliff this year. Grid parity PV is already a reality in expensive energy markets and will be nationwide in a short time.

    Look at NRELs report on CPS solar. Look at their estimates for it's potential just in the deserts of California.
    Up to ten times as much power as all electricity generated in California now. Their estimates for how many plants would be built by 2015 are already too conservative, based on how many CSP plants are already being built or are approved.

    www.nrel.gov/csp/pdfs/...

    These can be built from conception to completion in three years.
    And look at NRELs study on the economics benefits of CSP which are far greater than from comparable gas plants. (all the reports are in the pdf above)

    CSP commercial development isn't as far along as wind, but could have similar growth rates. With heat storage, it's dispatchable steady power even at night. Estimates for power prices are under 10 cents/kWh in 5 years, or more likely at current growth rate, less than 5 years; and 4-8 cents/kWh when industry economy of scale is reached. And like I said, they're ready to build now.

    Wind energy in the U.S. grew by 8.3 GW last year, and that is just the beginning of the growth. Even considering winds capacity factor, that's the equivalent of building close to three 1GW nuclear or coal plants in one year.
    Even at that rate, 100 GW could be built by 2020. The rate will be much higher going forward, although the current economic situation will likely slow it for the next year.
    Wind energy is cheap already.

    Why not choose energy sources that don't need fuels. None ever, to prospect for, mine, refine, transport, store, burn, clean up the mess from, pay health costs from, fight wars over, live with wild price flutuations from.

    Some things to consider, and everything should be considered.

    The point has been made by some, that it is much more efficient to use NG in power plants than in cars. Is this an efficient use of our natural gas suppies? NG power plants can be made more efficient than they are now, by coupling them with renewables, with fuel cells, capturing waste heat etc.
    T. Boone Pickens plan, to replace gas plants with wind farms and then run cars on the NG, doesn't quite add up. His investment in wind energy is a good thing, but wind with it's intermittency isn't a good match for replacing NG, which can be fired up when needed. Also, I'd rather see coal plants closed than gas plants, which are much cleaner.

    The personal transportation issue is a thorny one. I'm not ruling anything out. We obviously need some kind of near term solutions that will help transition to whatever comes next.

    Renewables, which some of you object to, are ready to build right now, and can be built much quicker than nuclear. Coal with CCS is still experimental. Solar and wind can be built on a large scale, long before CCS will become a reality. In the ten years it would take for the first new nuclear plant to go online, or the first CCS coal, hundreds of gigawatts of renewables could be built. And by then, they will be as cheap or cheaper than fossil fuels, or new nuclear. CCS won't be cheap. Estimates for building new nuclear plants and for the price of their power have skyrocketed. Renewables will only go down in price over the next 10-20 years.

    Look at NRELs report on CPS solar. Look at their estimates for it's potential just in the deserts of California.
    Up to ten times as much power as all electricity generated in California now. Their
    estimates for how many plants would be built by 2015 are already too conservative, based on how many CSP plants are already being built or are approved.

    www.nrel.gov/csp/pdfs/...

    These can be built from conception to completion in three years.
    And look at NRELs study on the economics benefits of CSP which are far greater than from comparable gas plants. Water deslinization, and combined heat and power can be had from solar thermal plants. Some are being built just for the heat, for industrial and agricultural processes.

    CSP commercial development isn't as far along as wind, but could have similar growth rates. With heat storage, it's dispatchable steady power even at night. Estimates for power prices are under 10 cents/kWh in 5 years, or more likely at current growth rate, less than 5 years; and 4-8 cents/kWh when industry economy of scale is reached. And like I said, they're ready to build now.

    Wind energy in the U.S. grew by 8.3 GW last year, and that is just the beginning of the growth. Even considering winds capacity factor, that's the equivalent of building close to three 1GW nuclear or coal plants in one year.
    Even at that rate, 100 GW could be built by 2020. The rate will be much higher going forward, although the current economic situation will likely slow it for the next year.
    Wind energy is cheap already.

    We import most of our uranium. How does that give us energy independence?

    Why not choose energy sources that don't need fuels. None ever, to prospect for, mine, refine, transport, store, burn, clean up the mess from, pay health costs from, fight wars over, live with wild price flutuations from.

    Apr 07 12:45 AM | Link | Reply
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    Sorry for the redundancy. I wish the window for typing these comments was bigger, so you can see what you're doing.
    Apr 07 12:53 AM | Link | Reply
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    Frflyer, Are there any CSP companies that look like good investments? Or are they all tied to utilites co.? Thanks for the informative data.


    Apr 07 06:23 AM | Link | Reply
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    frflyer: i would respond to your initial statements by saying it is more efficient to use US produced natural gas in cars than it is to use foreign oil. NG electric generation is a natural fit for backup for intermittent solar and wind arrays, and that is what is happening. i agree with you we should shut down coal plants and replace them with natural gas, wind, and solar. wrt personal transportation, the only US fuel that can be scaled up over the next 10 years to significantly reduce foreign oil imports (and therefore CO2 and particulate emissions) is natural gas. clean coal, and sequestration, are pipe dreams and just another tactic by the coal lobbyists to keep us addicted to this toxic energy source. obama should have his head checked for his support for "clean coal" as opposed to natural gas. "clean coal" is an oxymoron. wrt solar and wind, hey, i am all for them!! unfortunately, by themselves they don't reduce foreign oil imports. NG transportation does. so, let's continue to build out solar and wind, but in the meantime, let's leverage US produced nat gas in the tranpsportation sector.
    Apr 07 08:25 AM | Link | Reply
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    Fitz: the reserves and production numbers I posted were U.S. only, and didn't include foreign sources. So the percentages didn't include any impact of XOM's foreign sources.

    I'll do more digging on the work you mentioned. But you know, the 70's were a long time ago...I had hair back then!! I've been around for over 30 years and I've seen nothing but positives from all of the majors on natural gas, from technology development to buying acreage. Now, I'll admit that the majors have lagged the Large Independents on getting moving on shales, etc. but COP and BP were early movers in the San Juan basin, Exxon was an early mover in the Rockies and several of them are big in South Louisiana/South Texas in gas fields. Deep gas too.

    The revenue split by product is a bit more difficult to pull up so I'll have to plow through those.

    I work across the entire U.S., but with very little current exposure in the East. Just an area our company hasn't yet decided if its worth dealing with all the junk the locals are throwing at developers. Love E Texas/N. Louisiana/Arkansas. The Fayetteville is one of my favorites and I think SWN has done a heck of a job locking up a company making position. But if a company hasn't got an effective hedging position, not much of this makes sense right now. CHK is still selling a lot of their gas at $8+ due to their hedges, so their numbers will look better. Others have done the same, except for Big Oil/Gas. Most of them like to stay unhedged and take the market price risk. In rising times, that's good. In falling times, that's not so good!!

    Can I get a natural gas driven pick up truck?? or a Suburban? You just look silly pulling up at the C&W dance hall in a Prius!
    Apr 07 09:10 AM | Link | Reply
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    Mmmmark: i understand your C&W dance hall problem...so here is a list of EPA approved conversion kits. many of your favorite ford, chevy, and GMC trucks are on this list:

    www.ngvamerica.org/pdf...

    and yes, COP has been big in natural gas, obviously with their purchase of burlington resources. BP made a coup when it bought both Amoco and Atlantic Richfield. now, both of these companies should be huge supporters of natural gas transportation..not just because of their lower-48 reserves, but because of their holdings in alaskan natural gas as well. why the executives of these two companies don't publicly and demonstrably don't support pickens, natural gas legislation, and advertise on their own is quite simply beyond me. they are going to have a market for their oil for decades, but the best way to increase their investments in natural gas is to support NG transportation, yet they do not. it's a mystery to me...the only logical explanation is they are protecting their much larger investments in oil and gasoline refining. what a short term view!!
    Apr 07 09:54 AM | Link | Reply
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    I spent a year accumulating knowledge regarding CNG vehicles in order to start an Eco-Friendly limousine biz in California... In that short time, I watched the EPA's list of "approved vehicles"--at one time numbering a few hundred--gradually dwindle to a few dozen. And of those, I could count the sedans on my hands. The rest were all industrial trucks, vans & buses.

    I actually managed to track down the ONLY model of SUV (XL) that was attainable at the time: An '06 GMC Yukon, AND the precise engine type that was approved for conversion (via NGVAmerica's .pdf file).

    I then went to my only known source for a conversion kit in California (Baytech), and guess what? They said, NOPE. Ain't gonna do it.

    The reason? Because CARB has some ridiculous "Application Fee" of nearly $100,000!! So essentially my installer said, "you could do it, but CARB collects a fixed fee... regardless of the NUMBER of vehicles." So, my Yukon CNG quickly became a fleeting thought. Even if I drove my Yukon to AZ, had it converted and drove back to CA, he said the DMV would reject my registration. The whole thing is nuts!

    I wondered.... why? And it became obvious. CARB (and the EPA) will gladly assist municipalities & companies with creating FLEETS. They don't offer any help though, for an individual who wants to convert his own SUV. This seems totally backwards to me, especially in California, a state that "prides itself" on being environmentally prudent. But, their perceived progress actually belies their true concern: that vehicles converted to CNG can avoid paying transportation taxes like millions of other cars on the road.

    My feeling is, CARB & the EPA are dragging their feet.... until the gov't can conceive of a reliable way to tax individuals who fill up at home. (You know I would if I could!) Nevertheless, I do believe this legislation is a step in the right direction. Next, I'd like to see CARB change their App. Fee to something sensible... like "a $1,000 per car." Not to mention, the EPA's ridiculous "Re-Cert Fee" that requires OEM installers to re-certify their equipment of each & every model year for every engine type they are authorized to install... That's what makes them throw up THEIR hands in disgust.

    In the meantime, I went ahead with my Limo business--Naturalimo--and started with a hybrid. I'm probably going to add a bio-diesel soon, with the possibility of perhaps an all-electric one day. But sad to say, my dream of a CNG limo (and, by the way, the very reason I named my company "Naturalimo" ) remains mothballed. I'm waiting until some intrepid entrepreneur gathers up 20 aftermarket Yukon XL's, converts them, and opens his own CNG truck dealership!
    Apr 07 01:48 PM | Link | Reply
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    Thanks Fitz. I'll look over these and see if there is a handy place to fill up around here. There used to be a BP place that had it but I'm not sure. Many of the fleet trucks have CNG stickers so I'm assuming there is something. Of course, the "at home" version would work too as I usually don't drive long distances for my commute and I'm home at least 8 hours each night.

    Why don't CEO's promote NG? You got me. Guess they are busy counting their gazillions!
    Apr 07 01:57 PM | Link | Reply
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    I think most of us believe in wind and solar renewable energy. The trouble is that much of our political machinery is in the business of throwing up roadblocks, nee the cape wind project. If we truly believe that we need to import significantly less foreign oil for our economic and security well being, we need to focus our solution on the highest pay-off with a sense of urgency. Today approximately 51% of our electrical generation is provided by coal fueled generation facilities and the renewables are providing less than 1%. On the other hand, almost all of our vehicles use gasoline. Transportation accounts for over 40% of our daily oil usage. Replacing transportation with natural gas has the highest payoff in the shortest time. Further, the infra structure installation time is much shorter and less costly. All this points to the natural gas solution.
    Apr 07 03:20 PM | Link | Reply
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    Mmarrkk:

    I don't know about your NG pickup, but you can get a Peterbuilt or Kenworth 18 wheeler fueled by either CNG or LNG and instantly become the coolest dude at the CW dance hall.

    biz.yahoo.com/iw/08101...

    biz.yahoo.com/iw/08100...
    Apr 07 04:06 PM | Link | Reply
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    Make this happen and we would unleash a new growth engine for the economy. Once ordinary people see the benefits, it is off to the races. A grass roots effort is already happening in parts of Utah I hear. One really has to wonder why with such a marvelous energy plan that it has not been more widely embraced. My skeptical side tells me that the Obama Admin priority is to put its "cap and trade" scam in place and that agenda would be derailed by adoption of cheap and clean burning nat gas. So my guess is that this legislation will be sabotaged because it would actually work. I think it is clear that big government power brokers do not have our best interests at heart.
    Apr 08 10:51 AM | Link | Reply
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    ripski: you're cracking me up man

    chrisfive0: yes, i agree that a natural gas powered American economy would lead us to unprecendented growth and prosperity. and yes, Utah is jamming on natural gas (i attribute that to the Mormon survival instinct and a good state government). you may be right on your cap and trade agenda...and nat gas derailing it..that said, nat gas emits less than gasoline or coal (!) that said, i understand your cynicism. sadly, i have become very cynical myself when it comes to the US government and energy policy. and now, i am cynically about obama - he's been a huge dissapointment to me on america's biggest challenges: energy, finance and the economy, and the environment.
    Apr 08 07:36 PM | Link | Reply
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    WRITE to your congressmen if you want it to happen. It will take support from constitutents to make it a reality.


    On Apr 05 10:15 AM koolsool wrote:

    > I hope HR1835 has a chance for going forward because the domestic
    > nat gas producers & service industry are going to take a big
    > hit from Obama's budget. People should read the article published
    > by The Motley Fool on March 25th, titled "Obama's Plan To Punish
    > Big Oil Will Backfire". His budget will eliminate $31.5 billion of
    > tax incentives that domestic nat gas production now receive. The
    > hardest hit will be the shale producers, all the domestic new technology
    > stuff that should be encouraged. Maybe if the "Nat Gas Act" passes,
    > it will offset the damage done by Obama's budget. A company that
    > I like alot to benefit from nat gas transportation is Fuel Systems
    > Solutions FSYS.
    Apr 10 12:36 PM | Link | Reply
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    another good investment are Norse Energy Corp... read their website..



    norseman
    Apr 11 05:26 AM | Link | Reply
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    Bear with me it's my first post. Michael, I believe I saw you mention that NG seems conspicuously absent from Obama's rhetoric since taking office. I completely agree, to the point where I think he has a gag order on the term. I thought he was a big supporter but...

    1) No mention at the energy summit.
    2) Geithner was questioned about jobb losses in NG by LA House Rep Boustany. He managed to answer the question without using the words "NG". He was clearly avoiding it.
    3)Obama was on Leno and home refuling came up. Leno only mentioned a hydrogen car not the Honda GX he owns and promotes on the internet. The man owns an NG car and failed to mention it. The interview was highly scripted and once again NG was ommitted.
    4) A simple google search of Obama and NG will show no hits of any quotes dated post innauguration.

    Obama is avoiding the mention of NG. He's pandering to those who think we can power this nation on renewables starting next week!
    Apr 11 09:46 AM | Link | Reply
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    There was a lot of research in the 70's on "clean coal" i.e., coal gasification and coal liquification. We also made methane (NG) from CO2 and water. Are we starting over? I think "renewable energy projects" means that the same projects are renewable for grants every 10 years or so.

    XOM is producing NG from coal beds in Colorado now.

    Why do we call it 'green technology" when it is CO2 that makes the earth green? Reformulated gasoline makes your vehicle less efficient so it produces more CO2. Catalytic converters maximize the amount of CO2. (just trivia. Nothing to do with article)

    We can save more energy through conservation than we can produce through "alternative energy."

    "Cap and Trade" sounds like Enron. Selling a non-existent commodity.

    I agree that we need to stop talking and utilize every avenue available to us. Great article.
    Apr 21 10:26 AM | Link | Reply
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    WOULD THE COMPANY XTO, ALSO BENEFIT FROM THIS BILL?
    THANKS
    Apr 24 09:54 AM | Link | Reply
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    NG for vehicles is a major plus, we have had this in over in Europe for several years now, and whilst initially the problem was not enough gas stations with the technology to fill up at, these days its not an issue, and Gasoline to LNG conversion shops are in every town. Way cheaper to run cars on LNG, and performance is just as good.
    Jul 05 03:32 PM | Link | Reply
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    kewlhand: yeah, isn't it funny how all over the world countries that import much less oil than the US is making the transition to NGVs.
    Jul 15 02:34 PM | Link | Reply
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    "are" making the transition...too much vacation time :)
    Jul 15 02:35 PM | Link | Reply
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    I looked into this quite a bit, and I'm not sure it makes sense:

    - We already import some; increasing use will probably increase that.
    - We import from basically the same countries as OPEC; it's another dependence.
    (And natural gas producers are talking about forming something like OPEC.)
    - Increasing production and use carries similar risks as with other fossil fuels.
    - It's cleaner than oil, but does still produce CO2 and other pollutants.
    - It requires a new infrastructure (ex: for these vehicles to refuel).
    - It's (mostly) a fossil fuel - why build a new dependence on a limited supply that's already declining?

    And do we really need to bribe the industry that much? All those tax credits!

    I don't see enough advantages to outweigh the disadvantages - what have I missed?
    Sep 11 06:33 AM | Link | Reply
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    What I do know is that all of the Big Oil companies have huge portions of their reserves in natural gas and a large portion of their domestic reserves and revenues come from natural gas. It will take me a while to pull the numbers together but I'll try and post them later. But generally its more than 30% and for some companies, it approaches 50%.
    Oct 28 05:38 AM | Link | Reply