Natural Gas Comments Made Today By Fred Smith CEO FedEx
The natural gas drum beat gets louder! Guess who has development agreements with large engine builders? Westport Innovations (WPRT).
From NPR article located here
I quote - "For larger trucks, Smith says, the alternative energy answer is liquid or compressed natural gas. He says companies like Navistar and Cummins are developing new engines to power those trucks on natural gas, at savings of about 40 percent compared with diesel at current prices.
"As Cummins and Navistar and these folks put these engines out there, anybody that makes their living driving long-haul trucks or locally fueled trucks or buses is going to have a powerful incentive," he says.
While natural gas refueling stations are a hurdle, Smith thinks an adequate number, as few as 700, could be quickly installed along the interstate highway system to make long-haul trucking with natural gas viable within a few years.
A Game Changer
Smith says the discovery and unlocking of the vast amounts of natural gas in shale formations is a game changer.
"For the United States, it's been near providential," he says. "I think it offers us an opportunity to deal with a lot of issues that have been very difficult."
That includes America's reliance on coal to generate electricity. If natural gas were used instead, harmful emissions could be cut 50 percent.
Smith believes the country's immense shale gas resource, along with shale oil deposits in places like Texas and North Dakota, could help make the U.S. energy independent for the first time since he founded FedEx. But, he says, only if these resources are coupled with conservation and a move to alternative fuels."
Disclosure: I am long WPRT.
Additional disclosure: Looking to buy more on a constructive market pull back.