Supply Chain by the Numbers for Week of Nov. 17, 2011
Natural Gas Truck Prices at One Year Payback; Home Depot Supply Chain Powering Success; Survey Shows Need for SCM Segmentation? Big Year over Year Change in Oil
The current difference in cost for a natural gas powered Class 8 tractor versus a traditional diesel powered truck, according Andrew Littlefair, CEO of Clean Energy, a developer of natural gas filling stations, in an interview on CNBC this week. That's down from $65,000 three years ago, and at today's nat gas and diesel prices, provides about a one year payback from such a move, as truckers/shippers will save the equivalent of $1.50 per gallon, while an average truck users 20,000 gallons per year.
The average price of Brent crude oil so far in 2011, versus an average of just $80.00 in 2010. That's an increase of 38.5% year over year. Despite the usual blame on speculation, the International Energy Agency (IEA) said in its monthly report last week that supply and demand fundamentals were underpinning stubbornly high prices. And despite the threat that fuel costs pose to global economic growth, OPEC has given no indication it plans to change output levels at its next meeting in December, as prices continue to climb.