INDIANAPOLIS, May 23, 2012 /PRNewswire/ -- In a recent
report on the Indianapolis 500 and
the feasibility of alternative fuels, Brent
Schutte, Market Strategist for Harris Private Bank, writes
about the promising future of natural gas vehicles to cut costs for
American families and racing teams.
"Indy car drivers have embraced versions of alternative fuels
and this season will mark the first year that cars will be burning
E85 (ethanol) fuel," said Schutte. "The sights and sounds of
race cars burning fuel to speed across the track in America's
Heartland got us thinking about another American story, namely the
increased natural gas and crude oil production that is occurring in
many parts of the U.S."
Here are some facts from the report about gas usage for Indy car
drivers and average residents of Indianapolis:
- The average Indy car gets a "whopping" 2-3 miles per gallon,
which translates to approximately $600 -
$900 in fuel to complete the 500 miles. The average
Indianapolis resident will spend
$55 on fuel driving 500 miles, up
from about $20 in 1994.
- While the prize money for the winner of the Indy 500 has
increased roughly 60 percent since 2002, the median income of an
Indianapolis household has barely
budged, rising from $64,100 in 2002
to $66,000 in 2011.
Clearly, the increasing cost of fuel has "dented" household
budgets.
- Currently, the gallon gasoline equivalent of driving 500 miles
for an Indianapolis resident using
natural gas would equate to roughly $15. That's $40 cheaper than driving with traditional
gasoline or nearly $1,250 in annual
savings for the average family.
"We believe that the recent trend toward alternative energy
vehicles is more than just a passing fad and will continue until a
new equilibrium exists between the price of natural gas and the
price of oil," said Schutte. "Many companies already have or
are in the process of converting some of their fleets to run on
compressed natural gas, and the consumption of natural gas as
vehicle fuel continues to rise."
For a copy of the complete report, visit
www.harrisbank.com/indy500.
Harris Private Bank
Harris Private Bank is a trade name used by various financial
service providers in BMO Financial Corp. Banking services
offered by Harris Private Bank are provided by BMO Harris Bank N.A.
and their bank affiliates. Member FDIC. Not all products and
services are available in every state and/or location.
BMO and BMO Financial Group are trade names used by Bank of
Montreal
The information and opinions expressed herein are obtained from
sources believed to be reliable and up-to- date, however their
accuracy and completeness cannot be guaranteed. Opinions
expressed reflect judgment current as of this publication and are
subject to change. Past performance is not indicative of
future results.
SOURCE BMO Financial Group