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Natural Gas Could Fuel Sales of This Ford Truck

While America might run on Dunkin', Ford's (NYSE: F  ) new F-150 can soon be run on American natural gas. This past August, Ford announced that customers will be able to get an F-150 that's factory equipped to operate on either natural gas or gasoline. It's news that some of its customers were ecstatic to hear.

Customers will have to choose a Ford Qualified Vehicle Modifier like Westport Innovations (NASDAQ: WPRT  ) to complete the task. While uplift costs range between $7,500 and $9,500, with the money saved on fuel the payback can be in as little as 24 months. Westport Innovations will be offering Ford customers a range of options to fit their needs thanks to its versatile WiNG Power System.

Photo credit: Ford. 

This is a move that many Ford's customers have been waiting a long time to see come to pass. For example, oil and gas producer Pioneer Natural Resources (NYSE: PXD  ) has been buying Ford built trucks for years. However, its employees have been clamoring for a natural gas-powered F-150 because the larger F-250 and F-350 models are currently equipped to run on natural gas don't suit their lifestyles. The smaller F-150 on the other hand is perfect as it's "slightly smaller and fits more easily in the family garage," according to Lynn Lyons of Pioneer Natural Resources.

While she personally drives the F-250, which is the smallest F-Series truck Ford currently offers that can run on natural gas, her co-workers are waiting for the day when they can get their hands on an F-150. Lynn, who is in charge of purchasing trucks for Pioneer, has said that, "If I had F-150s that run on natural gas right now, we would have a large amount of employees" buy them for personal use.

The reason is pretty simply, as an oil and natural gas producer, Pioneer's employees know where its profits come from. That's why Pioneer wants to run its trucks on natural gas. Not only that, but as Lynn points out, "We can run them on our own fuel and it's less than $1 a gallon for us. You feel like you're the dairy farmer drinking your own milk."

Overall, the energy boom has created a huge boom in truck buying. Energy companies like Pioneer and its employees are heavy truck buyers. Not only that, but large land owners that have profited from lease bonuses and royalties in places like Texas, North Dakota, and Pennsylvania are flush with cash thanks to booming production. This has fueled overall demand for pickup trucks in these states.

That being said, natural gas has the potential to fuel the next big boom in Ford's truck sales, especially to energy industry participants. The industry is increasingly using natural gas to power drilling site equipment so it's only a matter of time before it becomes standard practice to use natural gas wherever possible. The fact that the already-popular Ford F-150 will soon have the ability to run on natural gas, it should make it the pickup truck of choice among energy producers. That will just put the natural gas revolution in America just one step closer to becoming a reality. It's cheaper, cleaner, and, of course, made in America.

The natural gas revolution has only just begun
As Ford is finding out, its customers are clamoring to fuel their trucks with natural gas. That's creating a massive opportunity this little-known company, which holds the the key to the explosive profit power of the coming "no choice fuel revolution." All the details are inside an exclusive report from The Motley Fool. Click here for the full story!

Read/Post Comments (11) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 20, 2013, at 11:44 AM, Justfocus wrote:

    Its interesting that companies are wanting to use natural gas to fuel their trucks. Just exactly how do they pay the 50 or 60 cents road tax? Just sayin

  • Report this Comment On October 20, 2013, at 12:41 PM, jmsmaxwell wrote:

    In rural areas this has been available or a very long

    time. Primarily with far vehicle because the were

    running their tractors on it and it was readily available to them. You would see P/U trucks

    with a large 100 gallon Natural Gas tank in the

    back. It was used to operate their Pickup and

    also to fill the tractors int he field. The only real

    problem was the lower fuel economy they could

    get and the limited fuel supply sources. But it

    burned cleaner and engines lasted a lot longer

    with good maintence.

  • Report this Comment On October 20, 2013, at 2:34 PM, rdmcdonald48 wrote:

    If you have an LNG vehicle that has a license plate, and are buying your fuel without paying the motor fuel tax at purchase; a tax can be calculated based upon your annual mileage report. The Fed's and the state are NOT going to let you skate.

    More and more metropolitan area's are seeing the LNG vehicles in buses and city owned vehicles. In rural counties, some police cars are being operated on dual fuel; Gasoline and LPG.

    There are conversion kits on the market for the day to day user to convert to alternative fuels, but are not highly recommended unless you have the resources available to re-fuel. Planning a long trip requires research as to fuel availability sites, such as Camping World for LPG, or other stations that have either LNG or LPG available.

    Fuel economy and throttle response suffers with these fuels; but oil changes are far less frequent due to carbon build up in the oil from the fuel burn being much, much, less. Engines do require some modifications; particularly in the valve train in order to take the increase combustion pressures and heat, but most US based domestic nameplate manufacturers today have an optional engine package available that will handle the LNG/LPG option.

    We've had dual fuel options available for more than 4 decades, it's just the people have had little interest in using them as a primary fuel source for their cars and trucks.

  • Report this Comment On October 20, 2013, at 3:29 PM, Jason87467 wrote:

    Ford just playing catchup to GM!

  • Report this Comment On October 20, 2013, at 3:36 PM, imDanielle2 wrote:

    Total BS about idiots saying they fuel economy and throttle response suffer.. Why the hell do you think they are switching to natural gas and the demand is growing for it? It is because the fuel economy is BETTER and the costs are about 40% cheaper per gallon in the long run.. I have driven several natural gas converted vehicles and I noticed no difference at all with them.. So if you experienced poor throttle or lower fuel economy, apparently your vehicle was not running correctly or something!

  • Report this Comment On October 20, 2013, at 3:41 PM, imDanielle2 wrote:

    The real reason Ford finally decided to step up and start to push all their EV, Hybrid and CNG vehicles is because they are kissing some big government BUTT because they are already in default on their other government loans and bailout money so they are dancing that line to finally evolve like the rest of the auto industry.. People are wanting more choices for alternative fuels.. Ford is finally seeing that their is a market for it and government will work with them to do it.. The more of these kinds of vehicles they can make means the more Ford F-150's they can make also ..

  • Report this Comment On October 20, 2013, at 5:58 PM, ramesses05 wrote:

    imDanielle are you really that stupid or are you just having fun, Ford never took a bailout that was Gm and Chrysler. The only money from the Government is for exactly this purpose to explore and design alternate fuel and EV vehicles. So go back to your little corner office and quit spewing lies.

  • Report this Comment On October 20, 2013, at 6:03 PM, djrichbourg wrote:

    imdaniell2 "is because they are kissing some big government BUTT because they are already in default on their other government loans and bailout money so they are dancing that line to finally" - guess what Daniell - FORD took NO taxpayer dollars!! NONE - they survived, GM is still going down...

  • Report this Comment On October 20, 2013, at 7:03 PM, brother10 wrote:

    Ford want to use CNG now? Well now when these Defective and Dangerous FIX OR REPAIR DAILY Ford vehicles BLOW UP," Ford will say That's Normal" Dangerous and Defective Rubbish.


  • Report this Comment On October 21, 2013, at 12:06 AM, metou wrote:

    You wont like it, I speak fron experience, back in 1980 during the fuel shortage, the city public works 5 yd dump trucks ran on natural gas, they were dogs with no power compared the fuild gas trucks. No one like driving them , they ran ok but were just flat when you needed power. yes they ran cleaner but with no power and gas milage was nothing to talk about.

  • Report this Comment On October 21, 2013, at 9:07 AM, byla wrote:

    Gee metou, ya think technology has stood still for over 2 decades? Your comment is like saying you will never like using the internet because you tried it back when you had a 56K modem and it sucked.

    Thing I don't understand is why the big 3 gave up on small pickup trucks.

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