compressed natural gas as an alternative, so I did some research. It would cost almost $4 trillion to convert the US to compressed natural gas for transportation. If natural gas is the equivalent of $2 per gallon, that means a total cost, net present value, of about $10-12 per gallon when you factor in the conversion.
We don't need to convert the entire fleet; that's a red herring. If we converted just, say, 10%, of our vehicles, the marginal drop in oil consumption would be significant.
And he is slightly skeptical about the technological improvements that can increase the oil supply even more than we think possible now.
If the current nat gas / diesel price relationship continues or gets even more favorable, you’ll see truck fleets that operate out of a “home base” start switching to nat gas next year.
The economics are too favorable to miss out on.