What happens to CLNE if the majors decide to install nat gas fueling pumps in their own stations? Natural gas is getting a lot of exposure now with Navistar, Ford, GM, Chrysler etc jumping on the bandwagon. I don't think the majors are just going to sit on their hands and watch Clean Energy run away with the market. For example, Exxon is the largest natural gas producer in the country and is vertically integrated to supply natural gas at a lower total cost.
Adding NG to auto gas stations is going to require SPACE & pumps.
Most stations are already designed to maximize existing space for as many pumps & tanks as the property can hold.
I don't think additing NG to an already existing gas station is as easy as it may sound.
Assuming existing gas stations are already maximized, then the only alternative would be do eliminate a grade of gasoline.
Most of the majors operate passenger car fueling stations. Passenger cars will be the last vehicles to transition to natural gas. The big guys cant cost justify rolling out thousands of natural gas pumps and infrastructure needed to store it for a small number of nat gas cars right now. It's the fleets and trucks that are rapidly transitioning now and Clean Energy is poised to take advantage of that. I'd even say its Clean energy's station build out that is helping to fuel the truck transition.
margins on gas is in the .01-.09 per gallon range.
service stations make their earnings on cokes and chips
nat gas cost is .35 for clne
they sell RETAIL at 2.25-2.75 creating huge margin
once consumer ownership increases substantially, even though nat gas margins are huge, you won't see majors having much interest till then
by then, we are $100
If you don't have real competition...you don't have a real product. Name one business out there that doesn't have a competitor. CLNE has been on the bleeding edge of the buildout. Now they will reap some rewards of that investment. More and more companies will be making the switch and needing CLNE's expertise. Maintenance contracts will be very lucrative and fairly risk free. The future is pretty bright.
exxon has been selling off its gasoline stations for 4 or 5 years. in nj lukoil got the mobil stations. the name exxon will be on the stations but exxon does not wat to be in the retail gasoline market as owners of those stations.
Don't you think this is one of the reason Exxon bought into nat gas? Exxon looks at things long term. Once the truckers start moving to nat gas, all the majors will carry CNG it at their truck stops.