Natural Gas Powered Cars?

I’ve become a big fan of natural gas, even replacing my old oil burning furnace with a natural gas furnace.  My rationale for doing so was that big, domestic natural gas fields were coming on-line thanks to the new hydraulic fracturing technology.  That would mean: a) domestic energy security and b) lower prices.  The lower prices haven’t quite played out yet, but I blame that on the Fed-induced energy bubble . . . but I digress.

At any rate, it seems that natural gas may also be in the running not just for heating our homes, but also for fueling our cars.  Tom Evslin has a post at Vermont Tiger called Fueling the Future: Oil, Gas or Electricity where he discusses the pros and cons of the major competing fuels.  It’s a very interesting analysis so do read the whole thing, but here is his conclusion:

So do we build the infrastructure for electric cars or CNG [compressed natural gas] cars? Or are we going to continue with gas and diesel? Interestingly, the low price of natural gas favors both electricity and CNG as fuels since the cost of electricity is very dependent on the price of natural gas. It’s not economically crazy to burn natural gas to generate electricity and then use that electricity to power cars, even when transmission losses are taken into effect.