BUSINESS FEED

John Stancavage: Special F-150 model could help boost CNG as fuel

By JOHN STANCAVAGE World Business Columnist on Sep 11, 2013, at 2:30 AM  Updated on 9/11/13 at 3:33 AM



Column - Stancavage

John Stancavage: Author William Cohan laments lack of Wall Street reform

When most people look back on the collapse of Lehman Brothers five years ago this week, they call what happened next a national financial crisis.

John Stancavage: Investment outlook optimistic

For the past few years, Wall Street has been a tough road to maneuver, full of potholes and the wreckage of once-successful companies.

CONTACT THE REPORTER

John Stancavage

918-581-8314
Email

Compressed natural gas is about to get a big boost as a motor fuel this fall when Ford rolls out a special model of its best-selling F-150 truck.

The 2014 Ford F-150 will be the first half-ton pickup available with a factory-installed option that will allow it to run on CNG or liquefied petroleum gas.

So equipped, the truck's 3.7-liter V6 engine will be able to travel 750 miles on a tankful, Ford says.

The CNG/LPG engine prep package will cost about $315. A Ford-qualified vehicle modifier will then install special fuel tanks, fuel lines and injectors at an additional cost of about $7,500 to $9,500.

"Everybody has been waiting a long time for this to happen. This is huge," Tom Sewell, president and founder of Tulsa Gas Technologies, told me. His company sells CNG equipment; converts vehicles; and builds, sells and owns CNG fueling stations.

The popularity of the F-150 and the ease of being able to get CNG as an official option should move the alternative fuel a little closer to the mainstream.

The F-150 will join CNG versions of the Chevrolet Silverado and GMC Sierra 2500 HD extended-cab pickup trucks and the Ram 1500 Heavy Duty CNG fleet/commercial truck. As far as sedans that don't require an aftermarket conversion, Honda offers a Civic GX that runs on CNG.

So far, CNG has been a niche market. Only 18 million of the 800 million vehicles worldwide can be fueled with compressed gas. But that could change as abundant natural gas from the nation's fracking boom keeps CNG prices sharply below gasoline, market analysts say.

Globally, the number of CNG-powered cars and trucks could rise more than 90 percent to 34.9 million by 2020, according to a forecast by Navigant Research.

Oklahoma currently ranks No. 3 in the nation in CNG consumption, Sewell said. He estimated his local stations have sold a million gallons of gas equivalent in the past year.

Sewell is a veteran of the CNG business locally. He has built about 10 fueling stations, including two public outlets under his own Blue Energy Fuels brand. He plans to add facilities in Grove and Broken Bow early next year and is looking at sites in Broken Arrow, Bixby, Mannford and elsewhere throughout Oklahoma and Arkansas.

In the Tulsa area, there also are CNG stations owned by Oklahoma Natural Gas, Apache Corp. and the city of Tulsa. Overall, there are about a dozen places to fill up locally.

Tulsa Gas Technologies currently is charging $1.499 for a gallon of CNG at its company-owned stations, versus $3.319 for a gallon of gasoline.

Another thing CNG has going for it is price stability. Gasoline costs often rise and fall on a daily basis, yet Sewell went 88 consecutive weeks before adjusting his CNG price slightly last month.

"I can lock in my price on the futures market," he said. "I've already bought all my gas for the next year."
Original Print Headline: New F-150 could boost CNG as fuel
Column - Stancavage

John Stancavage: Author William Cohan laments lack of Wall Street reform

When most people look back on the collapse of Lehman Brothers five years ago this week, they call what happened next a national financial crisis.

John Stancavage: Investment outlook optimistic

For the past few years, Wall Street has been a tough road to maneuver, full of potholes and the wreckage of once-successful companies.

CONTACT THE REPORTER

John Stancavage

918-581-8314
Email

COMMENTS

Join the conversation.

Anyone can post a comment on Tulsa World stories. You can either sign in to your Tulsa World account or use Facebook.

Sign in to your online account. If you don't have an account, create one for free. To comment through Facebook, please sign in to your account before you comment.

Read our commenting policy.


Join the conversation.

Anyone can post a comment on Tulsa World stories.

Sign in to your online account. If you don't have an account, create one for free.

Read our commenting policy.

By clicking "Submit" you are agreeing to our terms and conditions, and grant Tulsa World the right and license to publish the content of your posted comment, in whole or in part, in Tulsa World.