Issue link: http://read.dmtmag.com/i/101441
Energy be built. Major energy producers, in concert with municipalities and private companies, are currently working to build interstate, as well as local, infrastructure for natural gas fueling. Due to the price differential between gasoline/diesel and natural gas (between $1 and $3 per gallon equivalent) the transportation industry, both private and public, is working very hard to convert their fleets in order to take advantage of these savings. Emissions created from the use of natural gas are significantly less than that of diesel, and so the environment also benefits, at least from an air quality perspective. Thousands of jobs are being created in conjunction with the conversion of fleets and demand for equipment only continues to grow. Finally, increased energy production has driven unemployment in many areas to near zero. Anyone willing to relocate and work can find a job at an above-market wage. Across the country, demand is off the charts for everything from drilling rigs and pumping units to housing and office space, all driven by shale play. This means a better business and economic environment in areas where drilling is happening. As the shale plays are developed and fueling infrastructure established, there���s definitely a trickledown effect. Jobs will be created across the country at construction equipment, heavy truck, and car dealerships as a workforce is recruited, trained and deployed in the care of fleets of vehicles using natural gas. Fuel savings that will be measured in the billions of dollars will find its way back into the hands of the consuming public, which in turn creates demands for homes and other durable goods, as well as a bigger tax base to support government projects at national, state and local levels. Long Term The general consensus is that the current level of activity around both oil and natural gas will continue for the next three to five years. Beyond that, there���s a number of variables yet to be determined. As we begin a new year, there���s much to still be ironed out from a regulatory and tax perspective. The impacts those actions will have on the energy and construction equipment industry are yet to be known. Regardless, it���s clear that the time is right for construction equipment dealers to maximize sales and leasing opportunities to the energy industry and it���s by-product industries. n Mark Killpack is senior vice president, BOK Financial Equipment Financing. He can be reached at mkillpack@bokf.com. Mickey Coats is executive vice president, BOK Financial Energy Lending. Ground Engaging one Scoop at a Time woodsequipment.com 800-848-3447 Please visit us in CONDEX Booth 716. GX_PRINT_Buckets_061512.indd 1 6/13/12 2:09 PM January 2013 | Construction Equipment Distribution | www.cedmag.com | 61 56_BOKF_Feature_KP.indd 61 12/21/12 1:24 PM