Gallon Oil

Some say it is time to replace oil with natural gas   by Chris Termeer

Last week the price of gas increased by $0.17 per gallon. The Dow Jones Industrial Average was down by 2.1%, and the S&P500 decreased by 1.7%. These events reminded the people of America that the equity markets and its economy are mostly influenced by increases and decreases in the oil price. If the price of oil will decrease, it will benefit the economy; on the other hand, if it increases, it will be a pain for the economy. Records show that imported petroleum accounts for more than $1 billion in a day for the economy. Thus, it is time that the economy must think of various ways to solve this problem. If it is not solved now, it will become a disease which will affect the whole economy at a later stage. One of the ways to solve the problem of excessive usage of oil is to stop using the oil and start using natural gas whenever reasonable possible.

It is observed that natural gas is a possible substitute of oil which is capable of reducing the import of oil in the coming years. If the economy will use this alternative instead of oil for transportation, it could help to reduce the usage of up to 5,000,000 barrels of oil per day, further reducing its expenditure on imports. It is noted that the transportation sector accounts for 70% of the total consumption of oil in the US, so if it is replaced by natural gas it can save money. The most important thing is that natural gas is available in abundance. It is cheap, clean and most importantly, belongs to the domestic US economy.

The problem comes from replacing diesel in the transportation sector with natural gas. Many other countries, like Pakistan, Iran, Singapore, Italy and Brazil, have adapted to transportation by using this alternative form of fuel. But the problem in the US is that there are not many natural gas vehicles (NGVs) available. NGVs were founded about 100 years ago and have contributed successfully in building a better environment. As per the records maintained by NGV America, there are more than 12,000,000 NGVs in the whole world, yet in the United States of America there are only 110,000. The reason behind this statistic is that Ford and General Motors do not sell the NGVs in the US. The Honda Civic GX is an NGV available in America which is running successfully.

Nowadays, natural gas is sold at a cheaper price than diesel. It is approximately 42% cheaper than diesel. As per the estimates made by the International Association of Natural Gas Vehicles, more than 50 million NGVs will be available all around the globe in the next decade.

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