CNBC’s Ron Insana @ SIOR conference

ImageEnjoyed CNBC’s Ron Insana’s session at the Society of Industrial and Office Broker’s World Conference in Las Vegas last week.

Couple items I took away:

1.  2013 was the largest single year increase in oil production in US history.  Oil production increased over 1 million barrels a day.

2. Inexpensive energy specifically Natural gas (CNG and LNG) is one of the significant drivers of resurgent manufacturing in the United States.

3.Regulation isn’t all that bad.  The last financial crisis 2007/2008 was largely due to a lack of supervision, particularly in lending practices and “institutional games.”

4.  Education is critical to creating jobs and opportunity in the US.  Laborers need more portable skills.  Underemployment in the US is due to under educated workers.

5.  Household value in US is $83 Trillion, debt is $17 Trillion or 20% of household value.

6. Home ownership peaked at 69% in 2008, first boomed after WWI due to gov’t subsidies to promote home ownership.

 

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Alternative Fuels…OMG its LNG and CNG

Alternative Fuels 227 x 190Enjoyed Jared Stedl’s comments  at the Intermodal Association of Chicago dinner on March 4, 2013.

What I learned:

1.  Cost

  • Compressed Natural Gas (CNG) is 40% cheaper than diesel.  $4.15/gallon for diesel vs $2.25/gallon for CNG or Liquified Natural Gas (LNG).
  • CNG engines can be cost more than $35,000 more than a diesel engine.
  • 18 month – 3 year payback to switch from CNG from Diesel.

2.  Fleets

  • 20% of all US buses use LNG or CNG
  • 50% of all waste hauler orders from the factory are CNG

3.  Environmental Impact

  • NG reduces up to 30% of the CHG and 85% of the particulate matter…this is good

4.  Challenges

  • Still to early for to provide definitive cost benefit analysis.
  • NG vehicles require more maintenance.
  • Limited locations to get the fuel, typically customized for the user on their site.