The Prophet of $500 Oil and Utah's Failing CNG Infrastructure

[lshuster]

It's been fascinating to watch the meteoric demand for natural gas here in Utah, where we are practically giving CNG away. The media coverage, though, has seemed peculiarly "un-enlightened." The KSL.com story sets out to explain why Utah's CNG fueling has become complicated due to high consumer demand and you can also hear from Questar to Utah state officials, as they all strike a "deer-in-the-headlights" tone. There is an email address where you can provide input. Maybe it's time we inundate them with solutions?

When the news starts evoking a regular twitchy feeling, it's always nice to know there are smart people out there like Matthew Simmons, who grew up in Davis County, Utah. He's now a Texas investment banker, life-long republican, (turned Obama supporter, ) noted author and a mountaintop shouter. He's warning us about peak oil. From taking on OPEC, Exxon, and the Saudis to rebuking most fuel replacement notions as a fantasy land, Simmons calls it the way he sees it. Fortune profiles the cheerful, high-profile friend of T. Boone Pickens as he explains why $500 oil is on the way.


Given what's happening in the current financial markets, it may be worth heeding Simmons' peak oil observation that "We don't have the ability actually to come to grips with a crisis until it's hit us in the face."

adapted & edited by lshuster from....the daily webblog of

Kimberly Taylor
Director of Education and Business Programs
Alternative Fuel Vehicle Institute
http://weblog.afvi.org/

[Yroc]

Re: The Prophet of $500 Oil and Utah's Failing CNG Infrastructure

[FONT=Calibri][FONT=Calibri][B]It's been fascinating to watch the meteoric demand for natural gas here in Utah, where we are practically giving CNG away.

It's my understanding that stations with cng pumps make more per gge than they do per gallon of regular gas, I heard they get something like $.15 per gge, I don't see how that's 'giving it away' Just cause it's not as expensive as regular gas doesn't mean they are giving it away. Pickens on the the other hand wants to sell CNG for just under what regular gas is selling for, is this how you should set prices?? I don't think so, a reasonable profit is fine, gouging is just the rich getting richer. Seems like this is what this country is starting to be all about. Also, Questar is allowed a profit by the PSC, so they are making a reasonable profit as well.

[John Mitton]

Re: The Prophet of $500 Oil and Utah's Failing CNG Infrastructure

I think the stations make 7 cents / gge. The nice thing about it is the margin is always consistently there, unlike gasoline or diesel which jumps around -- sometimes for the better (rising prices when they just bought a load of fuel); sometimes for the worse (falling prices when they just bought a load).