With oil futures prices reaching a record $100/bbl on Wednesday and Thursday, power generators and other traditional natural gas users may soon find themselves competing with everyday drivers for the precious commodity, if NGVAmerica has anything to say about it.

After notching the $100/bbl milestone on Wednesday, February crude futures revisited the lofty price level Thursday, recording a high tick of $100.05/bbl before settling the day at $99.18/bbl. In contrast, February natural gas closed Thursday at $7.674. On a rough BTU comparison basis, February crude settled at $16.53/MMBtu, or at a $8.856/MMBtu premium to February natural gas.

“In the past, there were substantial societal benefits of using more natural gas as a vehicle fuel — such as reducing dependence on foreign oil, reducing greenhouse gases and reducing urban pollution,” said NGVAmerica President Richard Kolodziej. “Now, as the price gap between petroleum and natural gas widens, we’re seeing a major economic advantage, too. As a result, 2008 will be a milestone year in the growth of natural gas vehicles in the U.S.”

There are already six million natural gas vehicles (NGV) in use worldwide, up 20% from 2006, according to Kolodziej.

“We expect that growth rate to continue — or even accelerate — as countries try to avoid the economic burden of rising oil prices while also trying to reduce greenhouse gases,” he said. “South America, Asia and Europe will see the most expansion, but we will see much more interest in NGV use in the U.S., too.

“There is no silver bullet answer to our dependence on foreign oil. We must be shifting to all alternatives in the regions of the country and in the applications where they make the most sense. NGVs are a here-and-now alternative that makes environmental and economic sense.”

To encourage the shift to NGVs, the federal government is offering income tax credits that range from $2,500 to $32,000 for the purchase or conversion of NGVs, Kolodziej said.

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