Devon (DVN) was recently named to Fortune Magazine’s World’s Most Admired Companies list for the sixth year in the row. Fortune also noted that Devon ranks Number 1 in the “mining/crude oil production” category for social responsibility. Devon’s place at the forefront of using liquefied natural gas (LNG) and compressed natural gas (CNG) as alternative vehicle fuels is likely an influence on Devon’s placement.
CNG, LNG Drive Vehicles, Devon’s Growth
Extended use of CNG and LNG as alternative vehicle fuels is receiving support from multiple quarters. Just last year, the governors of Colorado, Pennsylvania, Wyoming, and Oklahoma (all states in which Devon operates) signed a memorandum of understanding to encourage car manufacturers to develop new natural gas-powered vehicles. The four governors also moved towards converting state fleets to natural gas, with plans to combine natural-gas driven vehicle purchases between their respective states.
In separate presentations to the OSU Energy Conference this past April, Chesapeake (CHK) CEO Aubrey McClendon and Devon CEO John Richels supported increased natural gas production in the U.S., predicting that although prices will not remain depressed for long natural gas will continue to be a cheaper energy source than oil. As Richels noted, energy producers tend to move in “more of a stampede than shift” on the issues. Looking at just a few of the LNG and CNG projects currently making waves in the energy industry proves his point.
Noble Energy (NBL) recently committed $5 million to purchase school buses in Weld County, Colorado – a hot spot for natural gas exploration in the Niobrara – that run on CNG. To continue reading, click here.