ripskii

Investing in the Pickens Plan, One Year Later

Thanks for the informative article. I was surprised by the the fuel economy penalty comments in the UPS study, but noted it was based upon old (1990's) conversion technology. Most of the penalty was related costs of troubleshooting initial problems. Now with Westport (WPRT) supplying OEM NG engines designed and proven in service these issues are eliminated and in fact modern CNG fleets realize lower maintenance costs.

The Pickens plan envisions a large quantity of wind turbines located in the central plains, but the power generated must be transported to distant markets. This requires a major (and expensive) change in our electric grid. Perhaps a better solution is to utilize off shore wind farms where the wind availability is higher and the nearby population density eliminates the electric grid transportation problems.

Oil Manipulations Exposed

nerfer, you are accurate in your comments about the major mid-east reserve numbers. During the Iran-Iraq war, both countries magically increased their reserves 30%. At the same time Saudi Arabia also gained 30%. OPEC production quotas are tied to reported reserves which is a very reasonable policy for efficient reservior management. There is no SEC to punish breaches in truthfulness in their reported reserves as occurred to Shell when they were caught cooking their books with overstated reserves.

Natural Gas: The Alternative Clean Energy Investment

As previously noted NG is clearly the bridge fuel to the future. One reason it sells well below its energy equivalent to oil is convenience of use. Most of our imported oil is for transportation use, so we must learn how to adapt to NG use. Honda has built the GX version of the Civic and now made it generally available. The downside is lack of NG refueling stations and short range due to the need for the high pressure storage tank. Home refueling is possible via a compressor connected to the home NG line and this makes it a good choice for commuter use. I see more and more NG fueled buses and trucks on the road lately, so Boone Pickens has it right for the near term. We need the political will to push this solution forward, something lacking now.