Fleets opt for natural gas over diesel fuel
Joe Wilson is CEO of Infinity Resource Group, Inc., a professional mineral rights consulting firm in Parkersburg, W.Va., and a Registered Landman. David Pearl is managing director of a CNG patent holding company and president of a CNG fuel island development company. Your questions are welcomed by calling 412-535-9200 or by e-mailing joe@irg-energy.com.
On a recent episode of the ABC TV series 鈥淪hark Tank,鈥� all of the panelists except one refused to invest in a miniaturized vehicle that was powered by a non-fossil fuel. The one panelist who agreed to invest did so tentatively subject to contingencies.
What we found interesting were the objections given by the 鈥渟hark鈥� panelists 鈥� that the market was not ready for this type of innovation, that there were too many unknowns, and while this vehicle may be the car of the future, it was too far out in the future for them to invest. Sharks look for good returns on their investments in reasonable periods of time. We suggest that the sharks turn their attention to the natural gas industry.
While the EPA labels natural gas an alternative fuel, most consider it a 鈥渇ossil fuel鈥� because the overwhelming majority of natural gas is mined in conjunction with oil drilling and fracking. A very small fraction is produced as a by-product of landfill waste and other innovative methane producing practices.
Natural gas has been powering vehicles throughout the world for decades 鈥� and the U.S. is lagging far behind. But that is beginning to change. Major fuel chains, such as Love蘑菇视频, are beginning to build compressed natural gas (CNG) stations at strategic points around the country.
As reported in NGT News, Love蘑菇视频 in partnership with Werner Enterprises, a major trucking firm, has opened its first Georgia compressed natural gas fueling location at an existing travel stop. Citing data from the U.S. Department of Energy Alternative Fuels Data Center, Love蘑菇视频 says the new fast-fill station is the second CNG facility in Georgia蘑菇视频 Greater Augusta area and the first in Thomson.
鈥淐ustomers in east Georgia, including Werner, are asking for more CNG locations and we鈥檙e happy to meet that need,鈥� said Bill Cashmareck, general manager of natural gas for Love蘑菇视频. 鈥淭homson is an ideal location because Interstate 20 is a major east-west route. This location will serve residents, fleets and leisure travelers who need a convenient place to fill.鈥�
Werner, which operates more than 7,100 trucks, has taken steps to improve its sustainability. The transport company planned to purchase eight CNG trucks specifically for the Thomson area, but it lacked a reliable place to fill.
鈥淲e needed a convenient location where our drivers could have access to other necessities,鈥� explains Steve Phillips, senior vice president of fleet resources for Werner Enterprises. 鈥淟ove蘑菇视频 has been a great business partner, so we reached out to them. The opening of this new location and others allows us to continue to invest in domestically produced energy, which is important to us and our customers.鈥�
Love蘑菇视频 currently has 12 fast-fill CNG locations across the U.S., and the company says six more are slated to open soon.
In a blog hosted by Ryder System, Inc. it was reported that Willow Run Foods wanted a cleaner, greener way to deliver food products to fast-food restaurants across the Northeastern U.S. Willow makes 2,500 deliveries of fresh foods and other products to restaurants in 14 states from Virginia to Maine each week. Their drivers log over 8.5 million miles per year, much of that in the New York metropolitan area 鈥� a region beset by congestion and high emissions.
The challenge to transportation managers was to find a way to cut the fleet蘑菇视频 environmental impact. Using a New York state grant and a sustainability plan created with Ryder, Willow Run leased 15 heavy-duty compressed natural gas (CNG) tractors, converting almost 15 of its tractor fleet. Almost immediately, the company 鈥� and the environment 鈥� saw returns. Even with low diesel prices, Willow Run realized annual fuel savings of $100,000 from the CNG vehicles.
Each vehicle蘑菇视频 550-mile range per fill-up means drivers can complete a full delivery circuit from the company蘑菇视频 distribution center in Kirkwood, New York, before refueling. The company also reduced its annual greenhouse gas emissions by 50 tons along New York City, Long Island, and northern New Jersey routes.
Also, reportedly, Walmart is requesting its trucking contractors to find environmentally cleaner and safer fuel alternatives to diesel. Natural gas provides all of this, plus significant cost savings in improved fuel mileage and maintenance costs.
Although it is still very early to consider natural gas a standard U.S. transportation fuel, companies such as Walmart, Loves, Werner, Ryder and Willow Run Foods are setting the trend. If one follows that trajectory, we predict that within 10 years, CNG will become the primary transportation fuel in the U.S. This, of course, bodes well for mineral rights owners.
Before making any decision regarding the disposition of your mineral rights, it is always advisable to seek professional advice from a mineral rights consultant for an evaluation of your mineral rights, and to consult with your lawyer and tax advisor.