- The U.S. needs to free itself from dependence on OPEC oil.
- If we can get the trucking industry to convert 8.5 million Class 6, 7 and 8 tractors from diesel to natural gas, then that would get us halfway to independence.
- Natural gas is cheaper than diesel, and is abundant in America.
- But natural gas vehicles cost more than diesel vehicles to purchase.
President Obama is supporting tax credits that would equal half the added cost of new alternative fuel commercial vehicles. "But standing squarely in the way of getting tax credits he needs to help trucking companies buy these natural gas trucks are a group of political and industry heavyweights." In particular, Mr. Pickens points out Grover Norquist, manager of Americans For Tax Reform. "His biggest clients are the Saudis," Mr. Pickens says. The Koch brothers are against him too. They have the greatest margins in the fertilizer and chemical business they've ever had, he said. The oil industry (of course), The Heritage Foundation and the Cato Institute are fighting him as well.
On the other hand, Mr. Pickens is supported by the President, Senator Harry Reid, and most Democratic Senators and some influential Republican Senators. He is also backed by the Sierra Club.
Mr. Pickens told President Obama that not many people in Washington understand energy. He said, "You can't have a five minute conversation there with anyone, because they run out of what they know before the five minutes are up."
Two barriers to adoption of natural gas by the trucking industry are (1) not having enough fueling stations, and (2) not enough Class 8 natural gas trucks for purchase. Earlier this year Pilot-Flying J Travel Centers announced a plan to install 70 fueling stations in 33 state in 2012. Cummins-westport, Kenworth, Peterbilt, Navistar, Freightliner and Caterpillar have all announced plans to produce Class-8 trucks and natural gas engines. Navistar is building a a range of Class 6 through Class 8 CNG and LNG-powered trucks.
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