Remember That Crazy Talk About Natural Gas Powered Cars?
If natural gas prices remain low relative to other fuels, utilities like American Electric Power (AEP) and PPL (PPL) will of course continue to switch to the fuel from coal. Whether the drillers and frackers create new gas supplies faster than we can use the stuff, of course, will determine prices going forward, and whether natural gas prices stay cheap compared to crude oil prices and gasoline prices. But don’t be surprised if natural gas powered vehicles, such as the Honda’s (HMC) Civic, attempt a comeback. Non-gasoline cars, including hybrids like Toyota’s (TM) Prius, have suffered because higher prices make the payback lengthy. Battery companies would likely prefer not to have new competition from natural gas.