|It's been a tough year for QTWW shareholders.. There's no doubt about it.. |
However, I still think, over a longer period of time, we're going to see increasing use of CNG in the transportation fleet. When NatGas is trading at $11/BOE (barrel of oil equivalent), it still presents a compelling alternative to Diesel..
And it doesn't hurt that tax credits for CNG have been extended, retroactive to 2015, and into 2016...
I'm also beginning to think that Quantum's move into virtual pipelines has a major application for creating CNG fill-up stations until such a period when pipeline distribution is more widely available at gas stations.
It's still my belief that the real bottleneck in the CNG conversion remains the lack of adequate fuel tank production, which for Quantum is a longer-term plus..
And I think this will become an even greater challenge if WPRT is able to perfect their NG injectors for use in existing Diesel vehicles. This is what ZHRO was attempting, and it appears that WPRT has the lead.. If they can convince the market that these are reliable and credible alternatives to dedicated CNG/LNG engines, it could lead to a major expansion of demand for CNG/LNG fuel tanks in order to take advantage of those tax credits, as well as to reduce operational fuel costs.
To drive demand, CNG/LNG has to be widely available, hence Virtual Pipelines which can be stationed at point of sales with little infrastructural investment, AS WELL AS being replaced, or refueled in place, by larger delivery vehicles. This will alleviate trucking fleets concerns about fuel availability.
Now also, think about this.. Hydrogen fuel cell vehicles face a similar issue, but can also benefit from a Virtual Pipeline concept.. In both cases, Quantum benefits..
One more point of consideration that remains in my mind.. With recent legislation that permits oil exports from the US to global markets, eventually the supply/demand equation will balance out the current decline in oil prices.
Furthermore, if we have a major disruption in oil supplies around the world due to Middle East turmoil, Natural Gas will become a primary source of domestic energy since it remains, essentially, landlocked to the US markets. In such a scenario, Virtual Pipelines will be in EXTREMELY HIGH demand..
Hence, I continue to believe that QTWW remains an undervalued company, with a bright future.. regardless of oil prices.