Others are using it right here in the U.S. to power trucks and other vehicles. Waste Management, Inc. (NYSE:WM), for instance, has amassed a sizable fleet consisting of 2,000 trucks powered by compressed natural gas, or Cheniere Energy, Inc. (NYSEMKT:LNG). It even recently opened a new Cheniere Energy, Inc. (NYSEMKT:LNG) fueling station in Bristol, Pa., to help fuel its growing fleet, as well as to provide fueling options for the public.
Along with LNG exporters and companies with large trucking fleets, other companies are also finding innovative ways of tapping the plentiful supply of U.S. natural gas. Let’s take a closer look at three of them.
Halliburton Company (NYSE:HAL)
First up is oilfield services company Halliburton Company (NYSE:HAL), which recently revealed how it’s using natural gas to fuel some of its vehicles. In a YouTube video, the company announced the addition of nearly 100 new light-duty trucks that can run on compressed natural gas.
The trucks, which can burn either CNG or gasoline, will be used for regular business operations, such as transporting personnel and equipment, in various locations where the company operates, including California, Colorado, Louisiana, Oklahoma, Pennsylvania, Texas, and Utah.
According to a statement by the company, the deployment of these trucks is part of a pilot program the company is implementing to help it decide how to expand its natural gas usage. The company’s rationale behind using CNG has to do with cost savings and greenhouse gas emission reductions. Indeed, Halliburton Company (NYSE:HAL) reckons the new trucks will slash emissions by 90% when they burn CNG and save roughly $5,100 in annual fuel costs.
The company is also cozying up to the idea of using natural gas to fuel hydraulic fracking operations, an approach that exploration and production companies including Apache Corporation (NYSE:APA) and Cabot Oil & Gas Corporation (NYSE:COG) are already using.
Apache
As with converting trucks and other vehicles to run on natural gas, the main incentives for these companies to use natural gas in fracking are reduced emissions and fuel-cost savings. Earlier this year, Apache Corporation (NYSE:APA) became the first energy exploration and production firm to power a full hydraulic fracturing operation using natural gas-burning engines — a feat it accomplished at its Granite Wash operations in Oklahoma. By making the switch, Apache Corporation (NYSE:APA) expects to lower fuel costs by roughly 60%, while also lowering emissions.
Cabot Oil & Gas
And more recently, Cabot Oil & Gas Corporation (NYSE:COG) announced that it’s using natural gas sourced from the Marcellus to fracture wells in its operations, marking the first time “field” gas has been used in northeastern Pennsylvania for fracking. The innovative duel-fuel technology, which uses engines capable of running on either natural gas or diesel, could help the company reduce its use of diesel by as much as 70%. In addition, it is expected to lead to reduced air emissions, reduced truck traffic, and substantial cost savings, Cabot Oil & Gas Corporation (NYSE:COG) said in a statement.
The bottom line
Halliburton Company (NYSE:HAL), Apache Corporation (NYSE:APA), and Cabot Oil & Gas Corporation (NYSE:COG)’s efforts in using natural gas in various ways are a promising development for the entire energy industry, as it moves toward minimizing its environmental impact. Not only is natural gas an inexpensive way to power a fleet of vehicles, but it can also help energy exploration and production companies slash their fuel costs, while simultaneously lowering greenhouse gas emissions.
The article 3 Energy Companies Innovating With Natural Gas originally appeared on Fool.com and is written by Arjun Sreekumar.
Fool contributor Arjun Sreekumar has no position in any stocks mentioned. The Motley Fool recommends Halliburton and Waste Management and owns shares of Apache and Waste Management.
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