The Missing Piece to the Energy Puzzle

I must admit, I thoroughly enjoy a good, old, American road trip. We’re lucky. My children are good travelers. They take the ups and downs of long hauls in their stride.

We’ve logged up to 850 miles in a day, but typically we try to limit ourselves to 500 as we crisscross the country. It is not uncommon for us to rack up 3,000 miles in the course of a week as we explore the best of what America has to offer.

Along the way, I’ve come to anticipate the all-important question: “Where’s the next bathroom?” When there are five people in the car, coordinating bathroom stops can be a marvel of linear programming. Usually we try to combine bathroom breaks with food and a fueling stop, which leads me to the heart of this article…

While the truck stop Pilot Flying J has been around for half a century, my family and I didn’t start visiting it until we happened into one when we found ourselves overflowing and running dry (so to speak).

What we found was reasonably priced gasoline and the treasure of all road trips… clean restrooms! This meant that, where possible, the Pilot Flying J stations moved to the top of our list.

And now I have another reason to extol Pilot’s virtues: The company is partnering with T. Boone Pickens’ new enterprise, Clean Energy (CLNE), to provide compressed natural gas (CNG) refueling stations in over 100 locations.

This is the missing piece to the energy puzzle.

The last 10 years have been weird for energy. Oil spiked higher. The U.S. has been involved in two wars in the Middle East. Green energy has been praised and subsidized. And natural gas went from severely limited availability to a 100-year supply, thanks to fracking.

So now what?

In the end, it all comes down to ease and price of conversion on the part of users. When it comes to electrical generation, plant operators can develop a fuel supply that services many, be it coal, gas, hydro, etc. Those of us who simply “plug stuff in” don’t really notice. But when it comes to vehicles… well, that’s a different story.

Not All Fuels are Created Equally

Ethanol was great if you grew corn. But if you ran a vehicle, then the agri-fuel was hard on your engine and had inferior energy storage. You simply can’t get as much energy out of a gallon of ethanol as you can with gasoline.

In addition, the production of ethanol uses a lot of energy AND the industry is widely subsidized, including its mandated use as a fuel additive.

Bio-diesel is an alternative, but we can’t use it in large quantities (meaning greater than 5% to 15% of a fuel mixture) in newer cars because it gums up the works.

Electric vehicles are tethered to recharging stations, suffering from a lack of range and a high price tag.

This is where compressed natural-gas-powered vehicles enter the fray. The technology is well developed and there’s no loss of power or range. With the new over-supply of natural gas, a gallon of CNG only costs about $2.10 while traditional gas costs around $3.50. That’s a 35% savings – that’s pretty good. The best immediate vehicle use of CNG is in big rigs, which travel consistent routes and have the space on board for the necessary storage tanks. These vehicles will recognize savings in a very short period of time and will immediately cut their emissions.

With ease of use, no loss of power or range, and a great price point, what we are missing is availability.

The Clean Energy / Pilot Flying J partnership is a large step toward bringing CNG vehicles into the mainstream. I couldn’t be happier with this transition. Not only are CNG vehicles cleaner burning, and therefore better for the environment, but the fuel source is local.

The current account deficit of the U.S. would plummet if we cut our daily oil imports in half. At the same time, we would boost employment in the U.S.

Here is a fuel source that can exist side by side with petroleum – same fueling stations, equivalent power, basically same engines – that we can produce locally to cut our imports, cut our costs, employ more people and reduce, if not eliminate, our dependence on nations that would like to see our demise.

The only things in our way are infrastructure build-out and consumer awareness. As we overcome these two problems, the increased use of compressed natural gas will help carry the U.S. into the next period of economic prosperity.

It won’t occur overnight, but be thankful that we’re on the right path in this part of our economic evolution! And if you need a clean bathroom on a long trip, don’t hesitate to park among the big rigs at a Pilot Flying J.


Managing Editor’s Note: The face of American energy is undoubtedly changing… a reality we explore further in our August issue of Boom & Bust. The conclusion Harry, Rodney and Adam reach is that now is the time to get involved. And Adam shows subscribers one of the best ways to do that. Discover the investment for yourself.


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About Author

Rodney Johnson works closely with Harry Dent to study how people spend their money as they go through predictable stages of life, how that spending drives our economy and how you can use this information to invest successfully in any market. Rodney began his career in financial services on Wall Street in the 1980s with Thomson McKinnon and then Prudential Securities. He started working on projects with Harry in the mid-1990s. He’s a regular guest on several radio programs such as America’s Wealth Management, Savvy Investor Radio, and has been featured on CNBC, Fox News and Fox Business’s “America’s Nightly Scorecard, where he discusses economic trends ranging from the price of oil to the direction of the U.S. economy. He holds degrees from Georgetown University and Southern Methodist University.


  1. Darby Monro 11 August, 2013, 19:26

    Saturday, 10 August 2013

    Letter to Harry S Dent

    Good Morning

    I have been a devoted fan of Harry S Dent since his first book – The Coming Boom – was introduced to me in 1992 or something like that. I was a Financial Advisor at the time, and it was compulsory reading.

    I read the book from cover to cover and said, “All this makes sense”. How simple is that? So why is economics so damn complicated?

    But over the many years you have been in business, my respect for your company has strengthened. You have not run away from any major change in the world’s economic direction, but stood there like a real captain and steered us through the storm, while many commentators and analysts have simply abandoned ship.

    Like your research team and methods, these too must have evolved from trial and error of what information to trust and what to ignore.

    But I am more impressed by the fact that your excellent team of Rodney Johnson and Charles Sizemore and now Adam Dell have been with you for years. To me this strengthens your reputation that you really are serious about what you do and are deeply committed to helping others.

    So if I may, I would love ask you if you would be kind enough to put together a special report on the life of Harry S Dent organisation, so that we too can appreciate how you do your analysis. For example:-
    • How big is your research organisation?
    • How did it all begin, when there are so many other researchers in the market?
    • What was the trigger that inspired you to set up your own research company?
    • How do you obtain all the correct (as opposed to the misleading) information?
    • Which influential people listen to you?
    • Which people ignore you that have caused us so much grief?

    May I wish you and you excellent team all the best.

    N Darby Monro
    P O Box 5309 Mackay Mail Centre
    Queensland Australia 4741
    Australia – Landline 07-49-540-181
    Australia – Mobile 04-1755-1192
    International – cell phone +372-5477-9692

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