Source: Rocky Mountain Institute outlet
As far back as the 1973 Arab oil embargo, natural gas has been considered as a transportation fuel—and understandably so since it burns cleaner than oil. A recent boom in domestic production offers tantalizingly low prices and the potential to ease U.S. dependence on foreign oil.
However, like any alternative fuel, natural gas does not offer a “one-fuel-fits-all” solution. The value proposition of natural gas vehicles varies widely by application. Fleets with high utilization and poor gas mileage, for example, glean near-term value from the switch to natural gas. But the picture for non-fleet passenger vehicles—the source for the majority of U.S. transportation energy use—is considerably more complex.
These complexities become particularly apparent when you compare natural gas to another alternative fuel option garnering even more attention, investment, and criticism: electricity. With limited money to invest, how do the two really stack up?