Actually it is that simple with tax credits. If a local farmer can do his own conversions and save money by using natural gas without getting a tax credit think about what would happen if Detroit could count on buyers getting a tax credit. Consumers could get a $2,000 credit for installing a small CNG compressor at home.and a credit for buying a vehicle. Credits would also be available for those that added a refuel station to their current business location.
I haven’t done the math, but my guess is that gasoline would have to drop well under $3.00 per gallon to be competitive. This country would have a surplus of gasoline to export. Oil at current prices cannot compete with natural gas until it drops to a much lower level.
Passing the natural gas act will have a domino effect that will continue long into the future. The Arabs aren’t going to be happy. Neither is Chavez.
The point is that to use natural gas for automotive fuel, you don’t need a refinery to process it. Guess who that bypasses? The farmer used natural gas straight out of a well located on his property and used a surplus medical oxygen compressor to refuel his vehicles.