Mideast crisis may make natural gas more attractive

TULSA, Okla. The Persian Gulf crisis could stir interest incompressed natural gas and some in the industry say continued highgasoline prices would make it easier to sell businesses on thetechnology.

Companies that operate large fleets of cars or trucks are seenas the most likely consumers of compressed gas, but before they makea large investment in compatible vehicles, they'll have to beconvinced they'll save money.

"We have to show them the long-term economic benefit, not ashort-term benefit based on a disruption overseas," said Jack Rigg,spokesman for Amoco Oil Co.

The main attraction of compressed gas in recent years has beenpollution control, but the American Gas Association hopes the PersianGulf crisis will open up a new market for natural gas.

"We think the economic benefits will be there in the long run,as well as environmental benefits and now energy security," saidGeorge Lawrence, association president. Another part of theassociation's pitch for compressed gas is that 93 percent of theUnited States' gas supplies currently come from domestic sources.

There are already 30,000 vehicles in the United States runningon natural gas. Most of them are in company fleets where the gas iscompressed at the motor pool.

Amoco last week opened a compressed gas pump at one of itsstations in Denver, but access to the fuel remains the main obstacleto widespread use.

For now, the economic benefits of compressed gas are apparent.The equivalent of a gallon of gasoline costs about 70 cents, the gasassociation said. Unleaded self-serve regular gasoline averaged$1.237 a gallon Monday, according to the American AutomobileAssociation. The average price has risen 16.2 cents since Iraqinvaded Kuwait Aug. 2, the AAA said.

General Motors Corp. announced July 24 that it would beginproduction early next year of at least 1,000 light-duty trucks thatwould run on natural gas and be available for utility and privatefleet use in California and Texas.

"Any time you see gas prices go up, you start to look foralternatives. This is definitely an alternative," said ThomasKlipstine, a spokesman for GM's truck division.

A price for the vehicles hasn't been determined, but the companysays they will be competitively priced. Amoco says it costs about$2,000 to convert a vehicle to accept both compressed gas andgasoline.

Another of the drawbacks to compressed gas is its shorter range- about 150 miles per tank. The vehicles also carry heavier tanks,although energy companies are exploring remedies.