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Clean Energy Fuels Corp. Message Board

  • fredrick240 fredrick240 Mar 12, 2010 3:30 PM Flag

    Exxon chief doubts nat gas in cars/long haul trucks is viable

    12:00 AM CST on Friday, March 12, 2010
    By ELIZABETH SOUDER / The Dallas Morning News
    esouder@dallasnews.com

    Exxon Mobil Corp. chief executive Rex Tillerson, it seems, has not joined the T. Boone Pickens army.

    Pickens has been stumping for the past two years for Americans to shift to natural gas as a vehicle fuel, particularly for heavy duty trucks. He says the move would help wean the U.S. off of foreign oil, support domestic natural gas, cut energy costs and reduce pollution.

    Tillerson said he doubts natural gas would accomplish all of that. And he isn't just promoting his own petroleum products – he's investing billions of dollars to boost Exxon's natural gas production. He just thinks we'll need more natural gas for power generation, not for cars and trucks.

    For one thing, refueling stations are costly, as much as $1 million, he said.

    "If you're a mom-and-pop retailer, that's almost impossible to do without a lot of help," Tillerson said.

    For long-haul trucks, "I can't make the math work on why anybody would do that," he said, since the trucking industry relies on service stations across the country.

    He conceded that vehicle fleets that use one central refueling station might make sense.

    Still, Tillerson said, converting an existing vehicle to natural gas is costly.

    And while a conversion can cut a vehicle's carbon dioxide emissions by as much as 20 percent, Tillerson said the internal combustion gasoline engine has a lot of room to improve on greenhouse gas emissions.

    Tillerson shares Pickens' view that natural gas will become more important for Americans. Exxon predicts the U.S. will shift more power generation to natural gas in coming decades.

    That's why Exxon has offered to buy Fort Worth natural gas producer XTO Energy for $41 billion, including debt assumption. The deal gives Exxon a large stake in natural gas production in North Texas' Barnett Shale and similar shale fields around the country.

    Exxon executives said Thursday they plan to invest $28 billion in capital spending this year, and to continue investing between $25 billion and $30 billion each year through 2014. Exxon invested $27.1 billion in 2009.

    Tillerson also said at the analyst meeting he expects Exxon's investment in Iraq to yield double-digit returns, if the company manages the project properly.

    The company recently signed an agreement to drill for oil in Iraq, and has begun holding planning meetings with its Iraqi counterparts.

    "They have been more enthusiastic about our joint work than perhaps we even anticipated," Tillerson said, adding that even though security is improving, it will continue to be a challenge.

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    • Ouch! Hey clne perma bulls, how do you feel about this nail in the coffin to your "clne xom buyout" thesis you all have been pumping for yeeearrrs?? You are all in denial. Someone tell cramer too. This is the ceo of exxon mobil folks, the largest energy company in the world- don't you think that he knows his sector?

      now, i do believe he is a little too pessimistic on nat gas for vehicles, as i am a long term clne bull and think the model works. But so many of you, frankly, idiots, have pumped this damn buyout scenario that i have continually dismissed... And finally we have confirmation from mr. Rex t. Himself! So put it to rest, sell your clne as long as the company is valued at $1,000,000,000, and don't be so damn greedy. Clne is a bread and butter company... No wildcatting going on here to find the next motherlode.. Just building infrastructure and delivering gallons. *relatively low growth* company doesn't even have earnings to base a p/e on... Fair value is about 750,000,000 market cap, and that is being generous.

      you can thank the shorts for this rally, who are level headed people who have actually thought about this company's valuation and growth rate, and decided that above $15 this company is overvalued. So they shorted it. Yet cramer, and blind analysts, and boone and littlefair media appearances keep the clne perma bulls and new investors buying. It has been a fantasic run since 11.50, i agree. But it ends here. Clne is priced for perfection and then some. Those 5.9 million shorts all covered in thursday and today's session in heavy volume. Now the profit taking comes from those who realize the lunacy of the valuation. The shorts have been supporting this stock on weakness as they race to cover. But the shorts are shaken out now. No buyers above $18 i'm pretty sure.... We will see in the coming sessions.

    • For long-haul trucks, "I can't make the math work on why anybody would do that," he said

      I can make the math work:
      An 18 wheeler can save $20,000 a year in reduced fuel cost with NG vs Diesel.

    • refueling stations are costly, as much as $1 million, he said.

      "If you're a mom-and-pop retailer, that's almost impossible to do without a lot of help," Tillerson said.
      ---------
      Huh???

      How many "Mom and Pop retailers are in the gas station business currently? He sounds like sour grapes to me. Probably wants to talk the refuleing market down until he can snatch it up.

    • CLNE is all about airport transport vehicles, city taxi services, city bus lines, etc. Getting OTR trucking to do it will be a tough task, no doubt. The infrastructure would take a long time with alot of cash.

    • fueling stations do not cost that much

 
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