|
Alternative Fuels - Who Profits?Alternative Fuels - How Do Companies Profit From Them
An alt fuel vehicle runs on fuels that are not petroleum or crude oil based... The reason for this is that crude oil will run out eventually Check out the page, Can we describe an alt fuel? The US dept of Energy says that the following are recognized types of alt fuel... However, There are lots of fuels that aren't made from crude oil... Almost every gallon of transportation fuel is petroleum based... And that doesn't look like changing anytime soon, with the millions of gasoline powered vehicles already in use worldwide... The problem is, being dependent on oil cause problems like oil price hikes, which causes gasoline prices to inflate and demand sometimes to drop artificially, driven by OPEC cartels control of world oil... * Worldwide we are vulnerable to prices changing quickly which causes us to experience shortages... * Air quality can be affected and causes concern about greenhouse emissions... * If we become more independent from petroleum, we are making the planet a better place also... Natural gas unfortunately is a non renewable resource, and is used as a feed stock for a lot of alt fuels at the moment... Fortunately, there is a lot of natural gas available which makes these other technologies viable and cheap... The supply of NG is naturally stable and cheap, too, which makes it a viable option in the short term until demand drives the price up to levels which force the buyers to reduce their usage
WHY would the companies want to produce natural gas and keep the customers and the population and environmentalists happy? MASSIVE profits are on the table as Coal Fired Electric Generation Plants look for cheaper providers of Natural Gas to provide what will eventually be the replacement for Coal, which has just been undercut by Natural Gas Coal is $59.32 per short ton. The coal provided to CME Central Appalachian Coal futures has an energy of 12,000 btu per pound. 24 mmbtu is contained in a short ton of coal therefore the converted price of Coal is $2.472 per mmbtu. Natural gas is NOW (August 2012) $2.343 per mmbtu So the strategy is - Become the Global supplier of Electricity Generation fuel, replacing Coal - Which will drive demand to stratospheric levels, raising the price, at which point either supply increases to push prices down, or demand drops which pushes prices down |
