U.S. Energy Services helps fleet operators convert to CNG as a transportation fuel

Feb. 6, 2013
With the significant spread between natural gas and diesel fuel/gasoline prices, converting liquid fuel vehicles to natural gas vehicles can be economically compelling.

U.S. Energy Services, a leading energy management company, unveiled ThinkTank Services, a new product designed to assist trucking/fleet clients evaluate the economic viability of using compressed natural gas (CNG) as a transportation fuel. With the significant spread between natural gas and diesel fuel/gasoline prices, converting liquid fuel vehicles to natural gas vehicles can be economically compelling. U.S. Energy Services can help companies operating vehicle fleets by providing CNG economic analysis, station design requirements, site development, supply management and data management services.

ThinkTank walks clients through the entire process of converting a fleet to CNG, taking advantage of U.S. Energy's years of expertise in natural gas markets. Front end economic analysis allows U.S. Energy to estimate whether the cost savings associated with conversion will provide a high return on investment (ROI) and quick payback. U.S. Energy also will manage the request for proposal process, dealing with CNG station contractors and vendors and analyzing their plans to provide customers with thoughtful, strategic recommendations. In addition, U.S. Energy will provide on-going operational services, managing the purchase and delivery of natural gas and ensuring that clients get the best prices available.

Converting to CNG can provide substantial cost savings. Natural gas prices have dropped by 43 percent since 2009 while gasoline and diesel prices have increased by more than 200 percent. Low prices and a market structure that allows for accurate budgeting and price risk management can provide a high ROI and quick payback for conversion. The savings for one vehicle in a fleet that travels 150,000 miles a year can be as high as $40,000 – a cost savings that can pay for the expense of converting that vehicle to CNG. If a fleet elects to own and operate a fuel facility on-site the savings are even higher. Natural gas also burns more cleanly then diesel and gasoline, allowing companies to reap environmental benefits as well as financial ones.

"Companies operating vehicle fleets all over the country are realizing the value of converting to CNG," says Bill Bathe, CEO of U.S. Energy Services. "Our expertise is a natural fit for helping them decide whether or not it's the best fit and how they can optimize their investment and get the best results."

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