Yes, natural gas (methane) is a good source for hydrogen. It will probably be the primary source until a more direct and inexpensive source is developed.
Enough already with the "natural gas" source for hydrogen thing. My freaking heating bill is high enough without having to fuel some California green-wacko's car to go shopping on Rodeo Drive.
The facts are:
1) Conversion of NatGas is wasteful in energy by itself.
2) It will drive up the already high cost of NatGas.
3) The greenies win nothing since the byproduct of conversion is CO2, a so-called "greenhouse gas". A byproduct of combustion is water vapor, another "greenhouse" contributor.
4) Hydrogen fuel does not necessarily burn clean.
5) For roughly four times the cost in fuel, hydrogen users will enjoy either a quarter of the horsepower or a quarter of the fuel efficiency over using gasoline... you can't have both.
As for the folks discussing Tesla and extracting electrical energy from the "air"; it's no pipe dream.
The earth's atmosphere has a natural voltage potential (with respect to ground) that increases dramatically with altitude. Just ask anyone into Ham radio that has gotten his/her self knocked on their butt when touching the lead from a high altitude antenna that has no DC ground. Or ask anyone who has dangled over a body of water from a helicopter using a metal line.
Voltage potentials of 100,000 Volts or more are possible depending on altitude, weather and of course, solar conditions.
There are ways to collect this energy but the drawback is that the current is low. However, it can still be high enough to kill someone who isn't careful. If the device to collect this energy is extremely large, then the available current dramatically increases. Just think of the next large cumulonimbus cloud you see and the lightning bolt that may come with it. BAM! More power than your home uses in a year with the A/C running day and night.
Okay... I'm off my scientific soapbox now.