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409 comments on DrumBeat: July 11, 2007

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rainsong on July 11, 2007 - 9:25am Permalink | Subthread | Parent | Comments top

Switching to CNG cars is growing rapidly as natural gas production was not supposed to peak for sometime.

In Peru they have 11 tcf of natural gas (EIA) and have been building an LNG plant for export. There are three CNG stations with ten more planned. They have both CNG and LPG cars.

Compressed natural gas did not require expensive refineries, reformulation additives, and was cheaper than gasoline. It had less carbon per molecule and burned clean. It did not require heavy bulky fuel cells. The natural gas was ligher than air and dissipated if disrupted by collision.

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Gail the Actuary on July 11, 2007 - 10:10am Permalink | Subthread | Parent | Comments top

CNG and LPG may work in a few places in the world (Peru, Iran), but the supply beyond the next couple of years is questionable in places like the United States and Europe.

It seems like LNG will not help the world supply situation much because the amount of LNG available is going to be much less than the world will be demanding.

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rainsong on July 11, 2007 - 11:49am Permalink | Subthread | Parent | Comments top

Consider Russia, Qatar, Bolivia, Australia, Malaysia, PPNG, Egypt, Oman, Algeria, Libya, Angola, Nigeria, Indonesia, Saudi Arabia to name a few more.

About 115000 Btu’s per gallon of gasoline--octane varies ($2.33 Nymex wholesale).

1 mcf of natural gas = 1020000 BTU's ($6-7 Nymex wholesale).

It appears like natural gas is currently about 4-5 times cheaper than gasoline in the U.S. in terms of BTU's per dollar.

In Germany retail gasoline was 2-3 times more expensive than in the United States.

It seems fuel switching in NG producers might reduce some of the oil panic.

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rainsong on July 11, 2007 - 11:51am Permalink | Subthread | Parent | Comments top

Correction NG might be more than twice as cheap as gasoline

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Boof on July 11, 2007 - 7:04pm Permalink | Subthread | Parent | Comments top

Note this fits the Westexas export substitution model.
1st oil (already) 2nd gas (starting now) 3rd coal (soon).

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409 comments on DrumBeat: July 11, 2007

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