I was wondering why my Golar LNG (GLNG) stock went up today and
it seems like it is Congress who is responsible.
The bill is a revamped version of the New Alternative Transportation to Give Americans Solutions Act, or NAT GAS Act, that died in Congress in 2008. The original act required 10 percent of all vehicles sold in the United States to run on natural gas and all retail gas stations have at least one natural-gas pump by 2018. The 2009 version of the bill would have increased tax credits for natural gas vehicles and refueling.
I'm not sure how a Natural Gas vehicle would work but this bill certainly will raise the demand and the price of the commodity going forward. I was thinking that a natural gas pump would be totally covered with no smoking signs too. I mean one spark and Kaboom. Also if you wreck a natural gas car would flammable gas fly everywhere? I guess I need to do more research into this sort of thing. In any case I would much rather power a car with a fuel that is brought up from the ground under North Dakota rather than Saudi Arabia or Iran any day.
2 comments:
First the Nat Gaas Act is not focused on cars; it is for trucking, refuse, etc. Second CNG and LNG are more stable than most fuels requiring s presise mixture of gas to air to be flammable that is hard to achieve in open air. The big thing is the economics, everything you see has been on a truck and as such the higher the fuel costs the higher the cost of everything. As such the natural gas solution saves companies money. Some companies have moved prior to legislation but the prize is too big so many are waiting. Legislation is required to speed up the process and get the economies of scale faster which makes this options a real solutuion for all companies as infrastructure will get built out quickly. Looks like congress gets it now and it looks like it will pass. It is good for America and jobs so likely this is a positive.
Sounds good to me. I'm long LNG carriers so any rise in the price of Nat Gas is good for me. Plus the idea of getting our fuel from North Dakota rather than Iran is very appealing to me.
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