Today’s energy policy speech by President Obama was heavy on the development of fossil fuel reserves in the U.S., including an increase in natural gas production.
Deutsche Bank explain:
popularised in “The Pickens Plan”, the main impetus for natural gas as a transportation fuel is the conversion of the commercial trucking fleet to liquified natural gas (LNG), followed by wider adoption of compressed natural gas (CNG) vehicles in personal transportation– in those markets (like California) with the highest need and a willingness to pay. Efforts to include natural gas transportation sections in energy legislation have run into procedural and budgetary constraints, so both the timeline and magnitude impacts are extremely difficult to predict.
And while Pickens and Obama may have quite a few people to convince on Capitol Hill yet on the wonders of nat gas, they need merely slide this chart in front of them to prove their point.
Note the continued cheapness of natural gas, compared to oil.
Photo: Deutsche Bank