Dallas Going Green With Natural Gas

It was just reported that the Dallas Area Rapid Transit DART board (no pun intended) voted to solicit bids from firms able to supply nearly 600 new natural gas-powered buses. They cited falling natural gas prices as the reason they no longer think diesel buses are the best buy. The cost was estimated at $100 million, but they claim the fuel savings will offset the expense. Dallas Mayor Tom Leppert said that choosing natural gas over diesel would help brand Dallas as an environmentally friendly, forward-looking city.

Commentary – The US market for Natural gas-powered vehicles (NGV’s) is expected to remain dominated by fleet sales to government and commercial customers. The fuel is cheaper than gasoline/diesel and has substantially lower CO2 emissions and other pollutants. The current price for compressed natural gas (CNG) in the Dallas area is $1.95/gallon. In Oklahoma City the average price is $1.11 per gallon.

October 30, 2009 - Posted by nngstart | Economy, Oil and Natural Gas, Renewable Energy Sources | fleet vehicles, natural gas, NGV, transportation | 2 Comments

2 Comments »

Will the city now sell natural gas to itself? Dallas has extensive mineral right holdings, does it not, and has recently acquired more?

Comment by Ruth Ann K | November 9, 2009
Thanks for your comment. Mineral rights don’t give you a call on the production. They are a royalty interest, not a working interest and you receive payments for your share usually 1/8th.. However, they can use their royalty payments to purchase natural gas for their fleet. Lou Marczynski

Comment by nngstart | November 10, 2009

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About

Lou Marczynski

Energy and the Economy are two issues on the forefront of the news today. My posts to this web-site provide my perspective on these issues using my background in the Oil and Gas Industry and the Financial Business. I have a Masters Degree in Engineering from the University of Nebraska and have worked 34 years as a Petroleum Engineer for a major natural gas pipeline company, a large independent oil producer and a major oil company. I have served on the American Gas Association Committee on Proved Natural Gas Reserves and the U.S. Potential Gas Committee. My experience in economic and financial matters include 6 years working as a Tax Professional, Financial Planner and Investment Broker. I am currently retired from these professions and hope that my insight and experience can help people more easily understand the issues and see more clearly their relative importance.

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