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NATURAL GAS in the TRUCKING INDUSTRY A Wave? Or Just Ripples?

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Presentation on theme: "NATURAL GAS in the TRUCKING INDUSTRY A Wave? Or Just Ripples?"— Presentation transcript:

1 NATURAL GAS in the TRUCKING INDUSTRY A Wave? Or Just Ripples?

2 OBJECTIVES Not embarrass myself Point you to the real experts Compare diesel to natural gas Discuss pros and cons of CNG and LNG for trucking Make some safe predictions

3 ON THE LEADING EDGE… Saddle Creek Ryder UPS Others Dillon PepsiCo JJ Taylor

4 DIESEL vs. NATURAL GAS Availability ROI (Cost-benefit) Disruptability Business Model – Return to Base vs. Long Haul Diversification

5 DIESEL vs. NATURAL GAS (continued) Government Incentives Offices/Energy/Natural-Gas-Fuel-Fleet-Vehicle-Rebate Experimentation (Self-Protection) Serviceability Intangibles Environmental Traditional vs. Modern

6 CNG vs. LNG CNG Fueling Structure Building Faster CNG Direct Connect vs. LNG Transport LNG Largely Dependent on Utility Company (unless contracting for your own supply) LNG Trending toward Rail and Ship LNG Tanks Hold More, Cost Less, Must Be Used Sooner

7 SAFE PREDICTIONS Economies of Scale Will Continue to Shorten Payback Period and Increase Availability Familiarity Will NOT Breed Contempt Self-Sufficiency Favors CNG, Especially in Florida Adoption Will Be Directly Proportional to Company Size Market Pressure Will Build (for a while) on Utility Companies to Meet LNG Demand (until decision point reached) Nobody Knows!

8 Kenneth S. Armstrong, Ph.D. President and CEO Florida Trucking Association (850)


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