Fuel Prices On The RiseEverywhere you look these days, you see headlines telling you that gasoline has gone up, propane has gone up and yes, natural gas has gone up, but what does it all really mean. We have all seen the price of gasoline at the pump go through the roof. Propane prices have risen over 160% and the propane suppliers can no longer hold back increases to their customers. We are finally seeing propane prices ranging from $16 to $22 a cylinder. But what about natural gas. The press reports are deceiving because the majority (estimated at over 90%) of business are using brokered gas, meaning the price they pay is protected by a contract. And for those who don’t have a contract, the increase only applies to the gas itself not the delivery charge. So only a portion of your gas bill increases. The net affect is all fuels have gone up, but natural gas still remains a viable option and an option that could very well save you money.
Volume 1, Issue IINatural Gas vs. Propane - Just Simple MathematicsThere’s no denying it; natural gas prices have increased dramatically over the last few years. However, it is a reality that is somewhat misleading to the average consumer. By deconstructing the price of natural gas, the associated cost savings are clear and simple. First, we must understand that the price of natural gas is comprised of 3 charges:
Unregulated, the commodity cost fluctuates in response to the open market. Recently, higher prices have plagued natural gas, however it remains the least expensive fuel source available, especially when compared to propane. Unfortunately, with claims that natural gas prices are rising, it appears that forklift users are reluctant to make the switch from propane. The switch, however, may be the smartest thing forklift users can do. A basic comparison using simple mathematics proves that natural gas is the most costeffective source of fuel available. A quick and easy example is to take the prices of propane and natural gas and subject them both to a 5% increase. The cost of propane is set and as such, would rise by the full 5%. Whereas, natural gas, as we know, is made up of 3 charges. With only the commodity portion, or 65%, of the natural gas price being affected, the overall price would rise by just over 3%. To demonstrate this further, take a look at the graph below. We’ve applied a 5% increase annually to the prices of natural gas and propane, over the next 10 years. Simply comparing current prices, year 1 exposes an impressive gap. As prices increase, that gap expands considerably as a direct result of the pricing structure associated with natural gas.
Today, the average price for a 33lbs cylinder of propane is $13 compared to $6.05 for a cylinder of natural gas. Keeping in mind that only 65% of that $6.05 i.e. $3.93 is affected, an increase by 5% will cause the commodity portion to grow by $0.20 for a grand total of $6.25 in year 2. However, if you take that same 5% and apply it to the cost of propane it will inflate by $0.65 – that’s more than 3 times that of natural gas! Further analysis demonstrates the degree of savings. In year 2, forklift users will save $7.40 per cylinder by using natural gas. And, by year 10, they will save close to $12 per cylinder. Over a year, this can result in huge savings. For example, if 250 cylinders of propane are used in one month, at a saving of $7.40 per cylinder, natural gas fueled forklift users can save approximately $22,200 in the second year. Using the same principle, forklift users could see annual savings close to $36,000 by year 10. The answer is simple; natural gas is the most economical solution for forklift users. And when paired with a FuelMaker system, it is also the most convenient. Still not convinced? Consider the cost of using propane to heat your building, or even to fuel your manufacturing process. Not cost-effective, is it? So why fuel your forklifts with propane? For more information, please contact FuelMaker Corporation at 1-800-227-6241 or cdninfo@fuelmaker.
Volume 1, Issue IIICARBON MONOXIDE POISONING - Know the Facts.It can Happen to You - Case Study According to the American Journal of Industrial Medicine, even a few hours a day of exposure over several months can cause damage. After driving a propane-powered forklift for over 5 years, symptoms persisted to the point that a driver was diagnosed with chronic CO intoxication. The symptoms included fatigue, nervousness, loss of sensation in extremities, and clumsiness.Chronic CO Poisoning - what you should know The trouble with chronic CO poisoning is that it is generally undetected or is misdiagnosed as chronic fatigue syndrome or clinical depression. Associated symptoms are similar to the common flu, and include fatigue, lack of motivation, general lethargy, flushed face, and headache. These signs can persist for days and even weeks after the initial exposure. The longer you are exposed to some degree of CO, the greater your risk of developing side effects, some of which are irreversible like a change in personality.Exposure Limit The Time-Weighted Average Exposure Value (TWAEV) as set by the OHSA is 35ppm. That means that over an 8-hour shift, the maximum allowable long-term exposure for a worker is 35 parts of the deadly gas for every 1 million parts of air. How does CO attack your body? The carbon monoxide sticks to your hemoglobin instead of oxygen, so your body thinks that it is anemic. As a result it makes more red blood cells, which means thicker blood. Ultimately, you run the risk of blood clots forming, subsequently causing strokes in the brain or heart attacks or even gangrenous fingers and toes. Once the hemoglobin combines with CO it is no longer available to transport oxygen to vital parts of the body, like the brain and the heart. The Silent Killer can be stopped! The use of natural gas-powered forklift trucks can reduce carbon monoxide levels by up to 95% - you’d have to run 20 natural gas forklifts to get the same emissions from just 1 propane forklift. Natural gas is the cleanest, safest, most convenient, and cost-effective fossil fuel available today. Composed primarily of methane (one carbon atom linked with four hydrogen atoms), natural gas burns cleaner than propane - which is composed of 3 carbon atoms and 8 hydrogen atoms. Because the carbon to hydrogen ratio is less in natural gas, less carbon monoxide is produced as a result of combustion. So, as you start closing the doors, keep in mind that your staff is now at greater risk of CO poisoning. Please contact FuelMaker for a free cost analysis, and see how your present propane costs can pay for the natural gas, the refueling station, the forklift conversion, and save you monthly. TIPS to Prevent Poisoning:
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