July 9, 2015
Whether you are already operating a Natural Gas fleet, or just contemplating making the transition, chances are you spend a lot of time looking for information. The good news is that there are some terrific resources on the internet. The bad news is there is A LOT of material on the internet. To help our readers sort the wheat from the chaff, we’re dedicating this week’s commentary to providing links you can use in a number of relevant areas. And of course, you can always check out our archive of news and commentary at http://mcepartners.com/news-and-commentary .
NGV Conversion Cost / Payback Calculators
MCEP Calculator (Complex): http://www.mcepartners.com/assets/images/conversioncalc.swf
MCEP Calculator (Simple): http://www.mcepartners.com/assets/price-sensitivity-analysis-2.swf
Clean Energy Calculator: https://www.cleanenergyfuels.com/services/financing-grants/calculator
NGV America Calculator: http://www.ngvamerica.org/vehicles/vehicle-cost-calculator-2
ACT Research Cost Calculator: http://calc.actresearch.net
CNG Now Calculator: http://www.cngnow.com/vehicles/calculator/pages/information.aspx
Fuel Station and Price finders
CNG Station Prices:
CNG Station Locator:
DoE Alternate Fuels Website: http://www.afdc.energy.gov
Retail Fuel Price Comparison Chart: http://www.afdc.energy.gov/data/10326
Energy Supply and Demand
Baker Hughes Rig Count Data: http://phx.corporate-ir.net/phoenix.zhtml?c=79687&p=irol-reportsother
World Fuel Supply and Demand Imbalance: http://www.eia.gov/forecasts/steo/report/global_oil.cfm
Resources for Natural Gas Vehicle News and Commentary
Listing of OEMs: http://www.ngvamerica.org/vehicles/vehicle-availability/
Ryder Leasing: http://www.ryder.com/naturalgas
Technical and Safety Information (formerly Clean Vehicle Education Foundation)
Environmental Impact of Fleets
US DoE AFLEET Tool: https://greet.es.anl.gov/afleet
Alternative Fuel and Conventional Vehicle Air Pollutant Emissions Clean Cities Air Emissions
Gas and Petroleum Commodity Pricing and Data
Natural Gas Commodity Pricing Data: http://www.eia.gov/dnav/ng/hist/rngc1w.htm
Natural Gas Commodity Futures Data: http://www.investing.com/commodities/natural-gas-contracts
Natural Gas Weekly supply, storage and pricing update: http://www.eia.gov/naturalgas/weekly/
Natural Gas Data Repository: http://www.eia.gov/naturalgas/data.cfm#summary
Crude Oil Commodity Pricing Data: http://www.investing.com/commodities/crude-oil
Crude Oil Commodity Futures Data: http://www.investing.com/commodities/crude-oil-contracts
Petroleum Weekly supply, storage and pricing update: http://www.eia.gov/petroleum/weekly/
Petroleum Data Repository: http://www.eia.gov/petroleum/data.cfm#summary
No. 2 Oil (Diesel surrogate) Commodity pricing data: http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=EER_EPD2F_PE1_Y35NY_DPG&f=D
Gasoline Commodity pricing data: http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=EER_EPMRR_PE1_Y35NY_DPG&f=D
Natural Gas Vehicle News
Atlanta Gas Light (AGL) announced it will join the 2015 Georgia Alternative Fuel Roadshow. Starting June 15, alternative fuel vehicles will be on display in several cities throughout Georgia. The tour dates are as follows.
The Obama administration is planning a series of actions this summer to rein in greenhouse-gas emissions from wide swaths of the economy, including trucks. The Environmental Protection Agency is expected to announce draft rules to cut carbon emissions from big trucks, according to people familiar with the proposals.
U.S. environmental regulators are expected within days to propose rules to make trucks more fuel efficient, but manufacturers disagree about whether the overall standard should encompass the engine, the truck itself and the trailer, or whether it should set separate standards for each of the three main components of an 18-wheeler freight hauler.
Even with gas and diesel prices down, natural gas is compelling. Last year, natural gas was between $1.50 and $2.00 per gallon cheaper than diesel. Since then, the oil-price drop has significantly cut into the price advantage. However, natural gas wholesale prices have also fallen about 40% during the same period. NG fuel has a higher percentage of fixed costs like compression and liquefaction, so the "at the pump" price hasn't fallen quite as much as gas or diesel -- but it remains significantly less expensive.
California-based Agility Fuel Systems has entered into a seven-year agreement with Freightliner Trucks, a division of Daimler Trucks North America LLC, to be the truck manufacturer’s sole provider of natural gas fuel systems
The Regional Air Quality Council (RAQC) has launched the application process for vehicle grants under its latest round of funding under the ALT Fuels Colorado program. RAQC will pay up to 80% of the incremental cost of an alternative fuel vehicle. Funding caps range from as low as $3,000 for a light-duty vehicle for private fleets and as high as $35,000 for a heavy-duty vehicle for public and non-profit fleets.
Number of Planned CNG and LNG Stations
Looking ahead, as the chart shows AFDC shows, the number of planned CNG stations continues on an upward trajectory, with 192 CNG stations being in the planning stage, an increase of two planned CNG stations from two weeks ago. AFDC data shows there being 63 LNG stations in the planning stage. Planned stations are stations that have been either announced, are in permitting, or are under construction. The list of planned stations also includes stations where installation of fueling infrastructure has been completed but the stations have yet to begin dispensing fuel.
Fuel Price News
According to Money Morning Global Energy Strategist Dr. Kent Moors, the EIA drilling report is right on target. “Between July and September of this year, production will finally start to decline from the wells that were recently put on line,” Moors explained. “Remember, these are the wells that have provided most of the excess volume.” “The translation? Eventually, the glut will recede, and the market is going to hand us some highly profitable plays in short order…”
While gas prices were previously expected to peak and begin declining, a surprisingly large decline in crude oil and gasoline inventories, as reported by the government, prompted a large rally in prices last week Wednesday, propelling several states to double digit daily gas price increases.
Even the paper of record for the oil industry, Oil & Gas Journal, got it wrong. With the release of the latest BP Statistical Review of World Energy, media outlets appeared to be taking dictation rather than asking questions about which countries produced the most oil in 2014.
The IEA has revised non-OPEC supply growth upwards by 0.2 million bbl/day while also revising up global demand growth by 0.3 million bbl/day for 2015.
A surging world population and a global shift towards urban living will create unprecedented demand for energy by 2050, but where will that energy come from?
A report by Baker Hughes Inc. (NYSE:BHI) says that despite the recovery seen in oil prices in the last few months after going through sharp declines earlier, US drillers have continued to cut the number of rigs. Oil companies in the US this week cut the rig count by seven just as the market has been anticipating an increase in the number of rigs with a rise in the price of crude. The oil services company reported that it was the biggest drop in the number of rigs since late May.
The Organization of Petroleum Exporting Countries (OPEC) released its June Oil Market Report Wednesday morning and the cartel left unchanged its forecast that demand will rise by 1.18 million barrels a day in 2015. The cartel also reported that the average price of a barrel of oil from its reference basket rose to $62.16, up $4.86 a barrel month-over-month.
The oil industry should be prepared to live with lower oil prices, Bob Dudley, the chief executive of BP PLC, said Wednesday, suggesting oil prices won't return to levels above $100 a barrel any time soon.
About Mansfield Energy Corp:
For 60 years, Mansfield has been creatively solving commercial, industrial, and municipal customers’ most demanding energy procurement, supply, and logistics challenges. Today, the company provides energy commodities and related services to 6,000 customers in 18,000 locations across the U.S. and Canada. The company’s expertise covers a broad range of transportation and facilities energy from traditional petroleum products, CNG, renewable fuels, and specialty chemicals to power and natural gas. Mansfield employees are committed to their customers’ success, abiding by five core principles - Integrity, Excellence, Conscientiousness, Innovation, and Personal Service. The company is headquartered in Gainesville, GA (just north of Atlanta) with regional operations centers located in Chicago, Dallas, Denver, Houston, Los Angeles, Minneapolis, Bloomington, MN, and Calgary, Alberta Canada.
For more information about Mansfield, call 800-695-6626, or visit our website at http://mansfield.energy.