OUR THOUGHTS ON:

Could Your Next Vehicle Be Powered by Natural Gas?

Energy & Resources

By Jeffrey Wlahofsky

Chesapeake Energy Corporation, the second-largest producer of natural gas in the U.S., recently announced plans to commit at least $1 billion over the next 10 years to identify and invest in companies and technologies that will replace OPEC oil with domestic oil, natural gas and natural gas-to-liquids fuels.

The first three areas of investment the company plans to undertake are:

  • To increase existing domestic onshore oil and natural gas liquids production.
  • To invest in publicly accessible natural gas fueling stations, which would encourage equipment manufacturers to increase their production of vehicles capable of running on natural gas.
  • To deploy processes to convert natural gas into a room-temperature, tank-ready, liquid transportation fuel that can be blended with existing supplies of gasoline and diesel or used as a stand-alone replacement product.

Chesapeake Energy Corporation CEO, Aubrey McClendon, in a recent interview stated, “The conversion of the heavy-duty truck market to natural gas would provide significant environmental benefits. According to the EPA data, use of natural gas in heavy-duty transportation will significantly cut emissions of carbon dioxide, sulfur dioxide, nitrogen oxide and particulates, substantially reducing air pollution and improving public health.” Chesapeake plans to take full advantage of the natural gas fuel cost savings and emissions reductions by accelerating the conversion of all of its 4,500 light-duty fleet vehicles to run on natural gas and 400 of its heavy-duty fleet vehicles to run on liquid natural gas. McClendon estimates that this conversion will reduce Chesapeake’s fuel costs by $15 to $20 million per year.

SOURCE: Chesapeake Energy Corporation

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