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Home » Arkansas, Business News/Analysis, Iowa, Louisiana, Ohio, Pennsylvania, Texas, West Virginia

Natural Gas Threatens Biofuels?

Submitted by on November 17, 2011 – 11:27 amNo Comment

by Carrin Hall (Energy Digital)  As the natural gas industry targets vehicles, what will happen to biofuels development?

Clean Energy Fuels, a leading natural gas provider in Seal Beach, has teamed up with Quarles Petroleum Inc. to bring customers alternative fuel, priced at $1.50 per gallon less than diesel or gasoline, at select locations.

…Eventually, natural gas-powered car owners can expect to be able to fill their vehicles from their home gas lines, according to James Huyser, director of business development for NatGas of Ankeny, a natural gas distributor that is helping to shepherd the introduction of natural gas into the Iowa automotive market.

While the development of biofuels remains unfinished, natural gas is already taking off across the country. Looking beyond biodiesel as an alternative to high-priced diesel fuel, domestic production of natural gas is on the rise in the US for the first time in almost 40 years. Increasing at an annual rate of up to 7 percent, enormous fields have opened up in Texas, Arkansas, Louisiana, Ohio, Pennsylvania and West Virginia.  READ MORE and MORE (Des Moines Register) and MORE and MORE (The Cleveland Plain Dealer)

Excerpt from the Des Moines Register:  In a presentation slide titled “What is Boone Pickens Thinking?” that chides the Texas gas booster, Brown also raises an issue about natural gas that has troubled utility executives like MidAmerican Energy president Bill Fehrman: For all its abundant supply, the price of natural gas has tended to spike and plunge wildly in the last decade.

Since the year 2000, consumers of natural gas have paid anywhere between $2.50 and $14 per thousand cubic feet for natural gas, a price volatility that even crude oil can’t match.  READ MORE

Excerpt from The Plain Dealer:  “The issue for the Ohio economy is whether there is enough demand for natural gas to permit development. It’s not a question of whether it will create 150,000 jobs or 170,000 jobs but a question of whether it will happen at all,” said Andrew Weissman, executive director of Energy Business Watch, a national private analytical service for energy investors.  READ MORE

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