In today’s Wall Street Journal, writer Liam Denning begins his “Heard on the Street” column with this question: “Will China adopt the Pickens Plan?”
Denning makes the case that China is, in effect, “adopting the Pickens Plan” by moving smartly toward natural gas-powered vehicles (NGVs) because “China sits on vast reserves of shale gas, more than 1,000 trillion cubic feet, according to Chinese energy officials.”
Denning also points out that China’s electricity production is “nine-tenths” fueled by coal, “which keeps China’s cities smoggy.”
“Gas,” Denning reminds his readers, “emits between 20% and 25% less carbon dioxide than petroleum and also less nitrogen dioxide and carbon monoxide.”
A bill currently in negotiations in the Senate which was introduced by Senate Majority Leader Harry Reid (D-Nev) would have a dramatic effect on helping move America’s heavy trucks from diesel to natural gas.
Similar language is contained in the NAT GAS Act (H.R. 1835) which has 146 bipartisan co-sponsors in the U.S. House showing deep and broad support.
“Barclays Capitol projects a U.S. [18-wheeler] burning 12,000 gallons of diesel a year could save almost a dollar a gallon by switching. Under current incentives, the $80,000 conversion cost would be recouped injust more than four years. The Senate bill would cut that to 16.2 months.”
To read the entire Heard on the Street article in the Wall Street Journal, click HERE (subscription may be required).
— The Pickens Team