Oil Price Volatility Makes Case For NGVs
This illustration from the American Gas Association's 2014 Playbook, shows that gasoline prices rely on crude oil by 70 percent.
With the price of oil being highly unpredictable it only makes sense for commercial and government fleets to choose natural gas-powered vehicles, according to NGVAmerica President Matt Godlewski.
NGVAmerica released a whitepaper outlining some of the historical facts and long-term perspectives on oil prices, gasoline, diesel, and natural gas fuels.
History shows that the recent decline in world crude oil prices and related gasoline and diesel prices won’t last and will increase as soon as the world economy rebounds, according to the report. On the flipside, economic models show that natural gas offers long-term stability and low gas prices could remain for many years, or even decades.
The report also points out that the long-term nature of fleet asset management suggests that it is essential to continue to invest in transportation fuel portfolio diversification by transitioning more vehicles to natural gas. Which could be a result of state and federal policymakers will promote fuel diversity and policies that encourage natural gas for energy security.
In his recent State of the Union address, President Barack Obama called for the increased use of natural gas.