Robert C. Little Director – Autogas Sales & Marketing [email protected] 972.849.9755 Autogas Infrastructure Simple. Flexible. Inexpensive. Foreign Oil • 2013 Priorities – Oil is an Unavoidable Cost Center • OPEC Oil: $147 Billion spent to Import from OPEC Nations • Veterans: $140 Billion spent on Veteran Affairs • Education: $72 Billion spent on Education • US Average Prices: 5/6/14 • Gasoline: $3.79 per Gallon • Diesel: $3.98 per Gallon • Autogas: $1.90 - $2.00 per Gallon • Transportation Demand: • 71% of US Imports Source: EIA Energy Timeline 1910: Propane Founded •Propane founded by Dr. Walter O Snelling – test sample from Ford Model T 1916: Conventional Fuels Challenged •“All the world is waiting for a substitute for gasoline.” Henry Ford, December, 1916 from a Detroit News interview. 1973: Oil Crisis •OPEC imposes oil embargo on the United States. At the time, 23% of our oil imported from OPEC Nations. Today ~40% 1990: Clean Air Act •Propane listed as an approved, alternative clean fuel in the 1990 Clean Air Act Listed again as an alternative fuel in the ‘ 92 Energy Policy Act 2008: Record High Prices •U.S. average retail price of regular gasoline reached $4.11 per gallon on July 7, 2008. On an inflation-adjusted basis (expressed in real December 2013 dollars using the Consumer Price Index) the highest monthly average price was $4.37 per gallon in June 2008. 2010: JP Energy Officially Launched •Gasoline Average Cost: $2.835 •50 Full Time Employees 2013 Steady Growth •Gasoline Average Cost: $3.575 • 900 Full Time Employees; 3rd Largest Cylinder Exchange Business in the USA •Associated Press Investigation shows Corn Based Ethanol is harmful for environment. EPA expected to reduce amount of ethanol required to be added to the gasoline supply. -CBS News 2020: Global Demand Rising •SE Asia , Indiana, China expected to register 2 billion “first time” automobiles. (Ford Global Research) Est. demand: more than 4 trillion gallons. JPE Overview NGL’s CRUDE SERVICES REFINED PRODUCTS Clean Clean Burning • 24% reduction in Greenhouse Gas (GHG) emissions. • 20% reduction in Nitrogen Oxide (NOx) emissions. • 60% reduction in Carbon Monoxide (CO) emissions. Clean Infrastructure • Non-EPA Regulated • Non-Carcinogenic • Not a Groundwater Contaminate • Zero Emission Fill Nozzle • Zero Risk of Spillage Domestic • 98% USA Produced • ~70% Sourced from Wet Natural Gas • ~30% Sourced from Crude Oil • Industry Stats • More than 56,000 US Jobs in Propane Industry • 83% of direct economic value of industry stays in the US Source: Study of Propane Value, Nov 2004 Abundant • Net Exporter of Propane • Billions of gallons exported each year due to vast supply • Largest Propane Inventory • More Gallons in Storage than ANY country in the world Abundant • 2,733 Autogas Stations in USA • 44% of all alternative fuel outlets in USA 25,761 USA Alt Fuel Stations Biodiesel CNG 5.2% 11.3% HY 0.2% LNG 0.9% LPG 43.9% E85 38.6% Biodiesel CNG HY LNG E85 LPG Source: AFDC Safe • Low Operating Pressure • 120-300 psi • Narrower Flammability Range • The range of air to vapor in which propane will ignite is narrower than that required for gasoline or diesel. Ratios for air to fuel ignition (rich limit ÷ lean limit): • Propane: 4.5:1 • Diesel: 12.5:1 • Gasoline: 5.5:1 • Auto ignition Temp (in Farenheit): • Propane: 850° • Diesel: 600° • Gasoline: 495° Source: PERC Flexible Splash Fill 1,000 gal. Scaleable 18,000 gal Relocate-able Redundant Capabilities Inexpensive Average more than $1.60 per gallon savings vs. gasoline Inexpensive – Sample ROI IC Diesel BB Diesel BB Propane Autogas Gallon Comparison Annual Miles 12,000.00 12,000.00 12,000.00 Total Miles in Life 180,000.00 180,000.00 180,000.00 Average MPG 77 Pass 6.00 7.00 4.00 Save Up to Gallons Consumed Annually Each 2,000.00 1,714.29 3,000.00 $44,000 in Gallons Consumed Total 30,000.00 25,714.29 45,000.00 Diesel Price Per Gallon $3.50 $3.50 Operating Costs Propane Price per Gallon $1.70 PM Comparison Oil Interval 3,500.00 6,000.00 6,000.00 Oil Capacity 30.00 17.00 7.00 Oil Filter Cost $28.00 $5.00 $5.00 Oil Cost per Quart $1.50 $1.50 $1.50 77 Pass DEF Gallons (2%) 600.00 514.29 DEF Cost per Gallon $1.89 $1.89 PM's per Year 51 30 30 Labor Hours per PM 1 1 1 Hourly Labor Cost $30.00 $30.00 $30.00 Fuel Filter Change Interval 12,000 12,000 50,000 Fuel Filter Cost $60.00 $20.00 $113.00 Total Filter Changes 15 15 3.6 Lifecycle Costs Annual Fuel Cost $105,000.00 $90,000.00 $76,500.00 Annual PM Cost $7,331.14 $3,087.00 $1,771.80 77 Pass TOTAL $112,331.14 $93,087.00 $78,271.80 THANK YOU Clean. Domestic. Abundant. Safe. Flexible. Redundant. Inexpensive. Rob Little JP Energy Partners Pinnacle Propane 972.849.9755 [email protected].