After Small Autogas Vehicles, ConocoPhillips Also Converts Trucks to Propane Fuel Driven

After pledging to deploy more than 300 autogas vehicles over the next five years, with 30 of them expected this year, ConocoPhillips (NYSE:COP) has also pledged to do the same for trucks, by retrofitting them with fuel efficient combustion engines. The company plans to convert at least 30 of them in the initial phase this year and will replace the other remaining trucks over the course in the next few years.

The move comes against the backdrop of a successful pilot program that has resulted in drivers clocking in thousands of miles on different oilfield roads of various states, especially in southwest Colorado. The employees at the company’s Farmington offices drive the trucks whenever they travel to ConocoPhillips’s well sites in the area of San Juan Basin for the purposes of maintenance.

It is part of what spokesperson Jim Lowry says is the company’s commitment towards the environment, where it is setting an example by using environmentally clean fuels to run their vehicles more efficiently and cut down carbon emissions footprint. However, natural gas is also a clean product, but propane has met the standards of vehicle performances even better.

By using propane-powered fuels, an average sized truck will lower the carbon footprint by fewer than 67,000 pounds throughout its lifetime. Since propane is more ‘compacted’ than gas, it makes it easier to store and transport. Most importantly, with the low priced fuel and declining infrastructure costs, the investments will pay off in terms of improved bottom lines.

The US oil and gas major is not alone though. Jason Sandel, executive vice president at Aztec Well Servicing, says that his company sees the logic behind the conversion of his diesel powered trucks to propane powered. Last year, he converted the oil servicing company’s 200 trucks and drilling rigs. He hopes to convert almost all of those fleets to propane by 2018, but the company has the option to run on both on propane and diesel, since there is no ruling out that the company can opt to retain some of its bi-fuel vehicles.

Separately, Mr. Sandel also sells auto fuel to Conoco and has a bi-fuel pump distribution channel in New Mexico to go along with his oil servicing company. His company, Roadrunner Fuels in Aztec, sells the fuel at a rate of $2.15 a gallon to at least six ConocoPhillips trucks each day.

ConocoPhillips stock price ended the day at $64.07, a gain of more than 0.70% from the previous day of trading.

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