This is an excerpt from a Motley Fool article.  A link is provided to the full article at the bottom of this post.

Adam Levine-Weinberg, The Motley Fool 3:53 p.m. EST November 11, 2013

Natural gas hits the road

The opportunity to reduce oil consumption by converting heavy trucks to natural gas is huge. Heavy trucks only make up 1% of the U.S. vehicle fleet, but they get lots of usage and have low gas mileage, so they represent 20% of fuel consumption. Adoption of natural gas engines is still held back by an inadequate fueling infrastructure, but this problem is already receding, and will become an even smaller barrier over time.

Ditching oil heat

Cheap natural gas is also cannibalizing oil in another domain: home heating. Oil heat has been waning in popularity for many years, but the recent surge in oil prices and the simultaneous drop in natural gas prices have been the final nail in the coffin. Oil heat is making its "last stand" in the Northeast, but natural gas suppliers are extending their reach due to a combination of political pressure and economic interest.

In recent years, the cost of heating a home with natural gas has often been less than half the cost of using oil heat. While it costs thousands of dollars to convert from oil to gas, for homeowners who expect to be around for 5-10 years it's almost a no-brainer to switch. Moreover, many gas companies provide long-term financing for customers who switch from oil to gas, allowing them to pay off the conversion cost with the energy bill savings over time.

As a result, it should be no surprise that oil heat is rapidly disappearing. According to the U.S. Energy Information Administration, the number of U.S. households using oil heat has dropped from 8.4 million to 6.9 million just since 2008, and this total is expected to drop by another 3% this year. This trend is likely to continue for the foreseeable future.

Link to full article: 

http://www.usatoday.com/story/money/personalfinance/2013/11/11/why-...