Natural and Renewable Natural Gas Is An Answer to $6 Diesel

When diesel is more than $6, it harms the American economy, as well we directly impacting farmers, trucking fleets, and other industrial sectors. All Americans feel the inflationary impact through higher transportation costs across supply chains and in the movement of consumer goods. Fuel costs historically account for approximately 25% of the cost to move goods through trucking at $3-$4 diesel and dramatically higher in today’s environment.

Nearly two decades ago, T. Boone Pickens, the larger-than-life Texas oilman and energy evangelist, argued that natural gas could play a larger role in America’s transportation future. Natural gas is, was, and always will be cheaper than oil and diesel in the United States. Natural and renewable natural gas cost approximately $2 per gallon as a delivered transportation fuel domestically with limited volatility expected for the foreseeable future given our strategic reserves of more than 100 years, existing pipeline distribution systems, and advances in lifting and production costs. These fuel cost savings will have a deflationary impact across our economy and benefit consumer prices for all Americans.

This resource, with compelling economic, environmental, and energy security advantages did not need a charismatic champion to make its case. It needed the truck technology to evolve enough to support heavy-duty trucking. That evolution has now taken place, enabling fleets to fully embrace natural and renewable natural gas as a viable and scalable option in this critical sector.

The reasons to unleash the potential for natural and renewable natural gas are both practical and urgent. Diesel prices have reached record highs, driven by conflict in the Middle East, disruptions to global energy markets, and tightening refining capacity. Once again, American businesses, truck fleets, and consumers are paying the price for a transportation sector that remains heavily dependent on a fuel whose price is increasingly determined by global conflict, geopolitical instability, and refining supply constraints far beyond our borders. We should be minimizing the impact on consumer prices and energy security from external forces beyond our control.

Furthermore, using more abundant and less expensive natural and renewable natural gas at home could allow the United States to export more higher priced domestically produced oil, improving trade surpluses. It’s simple – leverage and use more of our lower cost natural and renewable gas at home and sell our higher priced energy products abroad.

To unlock this potential and answer the $6 diesel challenge, we need stable, clear policies that support investments in new trucks and fueling infrastructure.

Clear and consistent implementation of the Renewable Fuel Standard as it is written and intended, along with continued regulatory support for advanced internal combustion engines, will unlock new investment, expand fueling infrastructure, and accelerate the adoption of natural and renewable natural gas across the freight sector. Fleets and fuel producers make billion-dollar investment decisions based on long-term policy signals. Without that clarity, we will leave a compelling economic solution on the side of the road and remain exposed to volatile fuel costs and inflationary pressure. Cleaner air, quieter trucks, domestic jobs and investment, and emissions reductions are icing on the cake.

In many ways, today’s opportunity is even stronger than the one Pickens envisioned. The energy cost differential between natural and renewable natural gas and diesel has widened, while inflation and affordability have become the top concerns for Americans, regardless of party.

Boone’s strategy was ahead of its time. Today, the technology has caught up, and natural and renewable natural gas can deliver benefits for all Americans.

Adam Comora is Co-Chief Executive Officer of OPAL Fuels, a leading producer and distributor of renewable natural gas.