Applied Natural Gas Fuels Inc (AGAS)

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Utilizing natural gas as vehicle fuel offers many benefits compared with traditional petroleum-based fuels like diesel and gasoline. One benefit is the tendency for natural gas to better maintain price stability. This tendency can be attributed to the fact that the United States has substantial domestic natural gas reserves. This allows natural gas prices to attain historically less volatility than petroleum-based fuels. In addition to price stability, when natural gas is purified, its energy content is more cost effective than traditional fuels. This means that vehicles run more efficiently and with less maintenance due to the cleaner burn of the fuel. Therefore, the combination of lower costs and improved price stability makes natural gas an attractive business option for fleets with high fuel consumption trends.

ALT would like to invite you to explore the world of natural gas alternative fuels and to become familiar with its use and benefits in various forms. If you have any questions, please contact us at [e-mail] and a representative will follow up as soon as possible.

Benefits
Utilizing natural gas as vehicle fuel offers many benefits compared with traditional petroleum-based fuels like diesel and gasoline. One benefit is the tendency for natural gas to better maintain price stability. According to the Energy Information Agency’s April 2010 Annual Energy Report, "natural gas for use in transport vehicles currently costs 42 percent less than diesel fuel (on an energy- equivalent basis...), and with oil prices rising at a significantly faster rate than U.S. natural gas prices, the gap is projected to widen to 50 percent in 2035." [1]


This trend can be attributed to the fact that the United States has substantial domestic natural gas reserves. This allows natural gas prices to attain historically less volatility than petroleum-based fuels. In addition to price stability, when natural gas is purified, its energy content is more cost effective than traditional fuels. This means that vehicles run more efficiently and with less maintenance due to the cleaner burn of the fuel. Therefore, the combination of lower costs and improved price stability makes natural gas an attractive business option for fleets with high fuel consumption trends.


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[1] - Energy Information Administration (EIA), Annual Energy Outlook 2010 with Projections to 2035, DOE/EIA- 0383(2010)(Washington, DC, April 2010), available at http://www.eia.doe.gov/oiaf/aeo/pdf/0383(2010).pdf, 34.