Heavy Duty Trucking

SEP 2014

The Fleet Business Authority

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DC HIGHWAY™ – POWERED BY LYTX The wisest decision you can make for the long haul. LIVE DEMO AT ATA: BOOTH 319 Call 866.419.5861 or go to Lytx.com/ata. DC Highway™ is designed to deliver rapid ROI for trucking by reducing costs, improving safety and delivering a competitive advantage, all while protecting the most valuable part of every feet—its drivers. www.Lytx.com Circle 237 on Reader Action Card www.truckinginfo.com SEPTEMBER 2014 • HDT 73 reports late August prices for WTI crude are at the lowest in seven months, around $93) suggests domes- tic production is having an impact on domestic pricing. Underlying the oil price volatil- ity, CNG pump prices have been trending slowly northward even as vast new holdings are opening up. According to the U.S. Department of Energy's Clean Cities Alternative Fuels Data Center, in 2008 the aver- age retail DGE price of CNG was $2.04. In 2010, it was $1.90. Since then it's risen to $2.15 (April 2014). Of course, prices vary by region and with supply commitments, but Werner Enterprises recently signed a 40-month service contract for 1.1 million diesel-equivalent gallons of CNG at $2.15 per gallon. A quick look at CNGprices.com shows retail prices are all over the map, literally, ranging from $0.84 to $4.50 per gasoline equivalent gallon. More common are prices in the $2.00 to $2.50 range. Loves' website posts CNG prices at four of its Texas loca- tions at $1.99 as of late August. During the same week, the Depart- ment of Energy's national pump price survey posted the national average diesel price at $3.82 per gallon. Perry also points out that there has been a significant contraction in the number of new wells drilled for natural gas recently. "The commercial price, the spot price for natural gas, is now less than the recovery cost," he points out. "There's a whole bunch still in the ground, but my point is that the sup- ply is not increasing anymore. It will eventually, but why will it? Because the price goes up." If diesel prices drop to $3.50 or less, and CNG trends up at its cur- rent pace, the price spread between diesel and natural gas could narrow noticeably. While even the wildest projections don't see the spread closing, a nar- rowing of the gap could force fleets to alter their trade cycles to regain the full cost benefit of natural gas. n

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