natural gas vehicles: an american energy, economic, and environmental answer wv public energy...

Natural Gas Vehicles:An American Energy, Economic, and

Environmental AnswerWV Public Energy Authority

May, 2012

Philip Pfister

CNG vs. Gasoline molecule structure

CNG vs. GasolineCNG vs. Gasoline

How Much

Do We

Really Have?

Global Competition Increasing2009 to 2015E

CHINA• 2.2 up to 10.1 Bbl/Person

INDIA• 0.9 up to 5.4 Bbl/Person

Source: US Energy Information Administration, Annual Energy Review 2009

Chinese vehicle ownership per capita is equal to where the U.S. was in 1919.

Compressed Natural Gas (CNG) – The Energy Answer!

1 Argentina   1,650,000 (12%) 1,400 1,180

2 Pakistan   1,550,000 (54%) 1,606 965

3 Brazil   1,425,513 (26%) 1,442 988

4 Italy   432,900 (12%) 558 775

5 India   334,820 (34%) 321 1,043

6 Iran   263,662 (82%) 179 1,472

7 Colombia   203,292 (65%) 310 655

8 USA   146,876 (9%) 1,340 109

9 China   127,120 (24%) 355 358

10 Ukraine   100,000 (33%) 147 680

STATIONSCNG VEHICLES

(Annual Growth Rates 2005 -2007)

NGVs / STATION

Growing Markets: Germany, Sweden, Japan

America on the Bottle• U.S. consumes 25% of the world’s

petroleum

• By 2020, the IEA predicts oil consumption will increase 60%

• To keep pace with demand, OPEC must add 64 million barrels of production per day for the next 22 years:– This growth will require $350

billion per year on new projects.– OPEC only spent $390 billion on

new projects from 2000-2007.

MOU signed by Multiple Governors

• Governors sign “Memorandum of Understanding” on November 9, 2011 to convert their states’ transportation fleets to CNG.

• Oklahoma, Colorado, Wyoming, West Virginia, Pennsylvania, Utah, Maine, New Mexico

• Goal is to create a critical mass of fleet vehicle purchases to entice auto makers to manufacture more affordable NGVs.

• Total fleet between states of more than 30,000 vehicles

• Continued efforts will be made to bring other Governors into the MOU

America’s Natural Gas Highway – December 2012 Projected

Source: Clean Energy Fuels Corporation

Natural Gas – Transportation The Case for Transportation

NW 23rd and Santa Fe - OKC

Price Stability Example

INPUT COST

Natural Gas (divide by 8) $0.50

Transport Costs & Fees $0.20

Electricity Costs per GGE $0.10

Maintenance per GGE $0.20

Federal and State Taxes $0.50

Fuel Card Fees per GGE $0.05

Retailer Profit Margin $0.40

CNG at the Pump $1.95

Natural Gas @ $4.00 per MCF

Natural Gas @ $8.00 per MCF

INPUT COST

Natural Gas (divide by 7.2) $1.00

Transport Costs & Fees $0.20

Electricity Costs per GGE $0.10

Maintenance per GGE $0.20

Federal and State Taxes $0.50

Fuel Card Fees per GGE $0.05

Retailer Profit Margin $0.40

CNG at the Pump $2.45

Vehicle Safety

Reference

cngnow.com

ngvamerica.org

ngvi.com

csa-america.org

epa.gov

arb.ca.gov

altecheco.com/index.htm

baftechnologies.com/

impcoautomotive.com

autogasamerica.com

natgascar.com

Philip PfisterOffice: (304) 353-5264

Mobile: (304) 993-3296philip.pfister@chk.com