And it is! E Science News writes, “The cost of complying with tougher EPA air-quality standards could spur an increased shift away from coal and toward natural gas for electricity generation, according to a new Duke University study. The stricter regulations on sulfur dioxide, particulate matter, nitrogen oxide and mercury may make nearly two-thirds of the nation’s coal-fired power plants as expensive to run as plants powered by natural gas, the study finds. “Because of the cost of upgrading plants to meet the EPA’s pending emissions regulations and its stricter enforcement of current regulations, natural gas plants would become cost-competitive with a majority of coal plants — even if natural gas becomes more than four times as expensive as coal.”
The big prize for the market is highway vehicles, which consumed 2.4 million barrels a day. Some of that is used in cars and light trucks, which are not suitable for conversion. But a big chunk was used by heavy trucks, as well as refuse collection, municipal buses, and mail delivery services, all of which rely on central refuelling facilities and could be retrofitted to use dual fuel without much difficulty.
The diesel market is fast approaching a tipping point. So far the hassle of retrofitting engines and installing the infrastructure needed to distribute liquefied natural gas (LNG) and compressed natural gas (CNG) has encouraged most businesses to stick with diesel even though gas has been cheaper. But if enough businesses convert, and enough distribution infrastructure is built, conversion costs will likely fall, and competitive pressure will force others to follow suit.”
Shell Oil gave that thought a boost when they came out and said that over the next couple of decades natural gas will be the number one fuels source in the world. Because of the U.S energy industry and the miracle of fracking, the energy world has changed. In another case of low prices curing low prices and the new bull market can now begin.
Add to that the Obama pick for Energy Secretary Ernest Moniz is a major supporter of a global natural gas trade. Now we have been telling you that natural gas is one of the best trades in the commodity markets today! We have been right based on the performance! What is even better the trade is far from over!