Record low natural gas prices have been all the talk lately. With natgas under $2/MMBtu after dropping from as high as $14/MMBtu a few years ago, all the talk is on car companies looking to build natgas powered cars.
Many car manufacturers already have limited CNG options available, with more lining up, promising to develop cars that can burn either gasoline or CNG. With gasoline prices soaring and natgas prices at the lowest they've been in decades, what's going to happen?
The thinking is that natgas development continues to boom, even with bargain basement prices. Indeed, natgas companies said they continue to profit when prices are above $1.50, due to new technology and development of natgas shale. There's huge promise for Americans that natgas may be up and coming.
The implications are huge. If natgas infrastructure continues to be built, which it likely will, vehicles could soon run on natural gas, leaving gasoline demand much lower than where it stands today, thus sending gasoline prices spiraling downward. Even with more demand on natgas, prices could likely stay lower as additional developments are made.
This all could be great news for motorists who could finally have an option on what fuel to power their vehicles- either natural gas or gasoline. Refiners and oil companies would finally have competition instead of camaraderie of other oil companies.
While natgas vehicles and infrstructure continue to be built at light speed, consumers won't have an new options until they buy a new dual powered vehicle- but even now, trucks exist that run on natgas. Many utility companies have run their company vehicles on nat gas.
So while we wait for natgas to become a viable option, just be happy knowing that perhaps tomorrow you'll have an energy option besides gasoline for that vehicle of yours.