increased CNG vehicle usage would be a positive long-term demand driver for natural gas, which could provide price support to the commodity.
Willowbrook, IL (PRWEB) August 09, 2013
HE System Technologies reports a bright future for natural gas and natural gas vehicles. Natural gas is already displacing coal as the preferred fuel for power plants. This has produced a downturn in greenhouse gas emissions here in the U. S. The second fast growing market is natural gas vehicles. The percentage of heavy trucks and buses running on CNG (compressed natural gas) are expected to grow to 3.4% and 12.7% respectively by 2018. Analysts predict that natural gas vehicles will continue a growth rate of 12-19% annually over the next ten years. By 2020, they predict that 65 million NGVs will be on the road worldwide.
CNG vehicle usage is not yet very widespread as current market penetration is still less than 1% of the total U.S. vehicle market. There are more incentives to switch to CNG over the long term. CNG vehicles generate lower emissions than their gasoline burning counterparts. Greenhouse gas reduction is seen as advantageous. The Federal government has extended tax credits for CNG refueling equipment and CNG powered vehicles.. Additionally, some states are offering inducements for CNG vehicle usage, such as tax credits or carpool lane status.
According to Market Realist Inc. an unbiased Investors publication, “while in the short-term CNG vehicle usage is not very widespread, several factors, such as fuel price, cheaper equipment, and emissions concerns, are likely to push CNG vehicle usage higher. Thus, increased CNG vehicle usage would be a positive long-term demand driver for natural gas, which could provide price support to the commodity, and also higher revenues for domestic natural gas producers, such as Chesapeake Energy (CHK), Southwestern Energy (SWN), and Range Resources (RRC). Investors can also gain exposure to natural gas through ETFs such as the United States Natural Gas Fund (UNG), which aims to track the front month natural gas futures price, and United States 12 Month Natural Gas Fund (UNL), which aims to track the average of the next twelve months’ natural gas futures prices.”
It appears that natural gas will be a growing sector for decades to come. This provides stability in the market and confidence to make investments in infrastructure. HE System Technologies is working hard to do their part and supply fueling equipment for small fleets and individuals who want take advantage this cheap dependable and abundant fuel.
HE System Technologies is natural gas compressor and filling station producer in Willowbrook Il. Their HEDEX4 and HEDEX7 compressors have revolutionized natural gas compression. For more information about the company and their CNG compressor products for small fleets and individuals, please contact Jim McSweeney at 630-537-1219.