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WEEKLY VIDEO: Chevrolet Malibu

CANADIAN AUTO BUSINESS: CHANGING TIMES

CANADIAN AUTO BUSINESS: CHANGING TIMES AND NEW FUEL ALTERNATIVES
Natural Gas - Canada's next opportunity
Ethanol - Tightrope walking
Pure Electric - Fast forward
Hybrids - The middle road
IC Engine - New hopes

TJAA.ca presents a new series on Canada's automotive opportunities related to alternative fuels. Here is the first installment:

NATURAL GAS - CANADA'S NEXT OPPORTUNITY

By Michael Pistol

It seems that we're living in a world ruled by the ones who like to maintain a big scary vision of a world gone horribly wrong. Yet, in reality, there's not a lot we should fear. Perhaps, all the shock and awe that high oil prices are provoking, is actually a good thing - some argue. And this is precisely were the pro and con arguments are reaching subatomic levels, to the delight of a small but growing crowd of business leaders who are taking this turmoil as their once in a life time opportunity. On the other side, the status-quo preponderant, terrified by the velocity of change and regression value of his business - the neutron bomb that quietly is decimating decades of investments and hopes for the future.

For the automotive sector, the fuel dilemma is a crushing one: Far too many companies are presuming that maintaining ‘optimum' conditions for aimless technological innovation is good corporate governance and citizenship. Yet, picking the wrong end of the stick can be devastating - and we're increasingly seeing the results of such ill, or well-conceived corporate policies.

For a moment, assume that indeed the oil price will rise to the $200 pb mark (see Goldman Sachs, CIBC World Markets, Gasprom's predictions). As scary as that is, reportedly, there are already rumblings of a $500 pb of oil within a 3 to 5 year period - at least according to the highly regarded Dr. Robert Hirsch, Senior Energy Advisor - MISI.

Now, before you reach for your Valium pills, you must remember that these are predictions only. Yet, considering this last year's oil experience, the state of the economy, capital's flight to commodities, etc, most of us will concede - at least marginally, that anything could happen.

As such, for the automotive sector, replacing oil as a source of fuel has become Priority No1 - across the board.

When talking alternative fuels and propulsion, most Canadians - business included - think hybrids, pure-electrics, ethanol and occasionally, biodiesel. Yet, one of the most potent alternative fuels, natural gas, is for some reasons at the very bottom of an ever-growing list of alternative options.

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