and what about federal and state tax? how is that calculated?? in therms, the volume of the liquid gas or the volume of it as offgas???
Posted on 07/13/2011 2:58:44 PM PDT by shove_it
Clean Energy Fuels CLNE extended its gains for another day on Wednesday as Wall Street continues to do the math on plans by the company to build 150 natural gas filling stations for fleet trucks to convert their rigs to run on natural gas. Sounding a bullish call on the stock, Bank of America Merrill Lynch analyst Steven Milunovich upgraded Clean Energy Fuels to buy from underperform and said a savings of up to $2 a gallon on fuel costs for natural gas-powered trucks could be enough of an incentive for truck owners to make the switch, even if a proposed tax break supporting conversion costs for trucks fails to pass in Congress.
The tax break, included in the Nat Gas Act bill, has been proposed and promoted by billionaire T. Boone Pickens, but the measure has also drawn some powerful opponents including fellow billionaire Charles Koch, head of privately-held energy powerhouse, Koch Industries.
Pickens continues to push for the measure, arguing that gasoline costs could rise to $5 a gallon next year, while natural gas supplies remain plentiful and cheap. Critics says the bill would unfairly subsidize the natural gas business. “We do not believe the government should be picking winners and losers in the marketplace,” a Koch executive told Bloomberg News. Analyst Milunovich said the cost of converting a truck to run on natural gas appears to be falling to around $35,000 from $65,000, and truckers will save up to $2 a gallon on fuel costs. The payback for going with natural gas could be as short as one to two years, he argues. With support from a $150 million convertible debt investment from Aubrey McClendon’s Chesapeake Energy Corp. (CHK), Clean Energy Fuels will address the chicken and the egg problem by building natural gas filling stations ...
(Excerpt) Read more at blogs.marketwatch.com ...
When it stands on its merits in the marketplace and doesn't receive any special tax treatment.
“Talk to the experts ...
We have Cummins Diesels,and no way I would convert to a spark plug motor,besides when the price of fuel drops the NG motor will not be as attractive.
and what about federal and state tax? how is that calculated?? in therms, the volume of the liquid gas or the volume of it as offgas???
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