Peregrine Fuel Saving Proposal

Peregrine Fuel Saving Proposal

When determining possibilities of lowering fuel costs, it is important to cover all areas that affect these costs. Peregrine has a large fleet of over 100 trucks that range in years from 2006 to 2011 and are all the same make and model. Having all trucks identical in make and model, with the exception of different years, will make it somewhat easier to determine what the average miles per gallon would be. It was important to examine the distances each truck travelled and to track weather conditions that each truck experienced. There are many items that affect Peregrine’s fleet fuel usages. I have found ways to convert truck engines and lower fuel costs and produce lower effects on the environment. Peregrine’s best move towards developing a higher level of social consciousness and lower fuel costs would be to convert their diesel engines to natural gas, raise mileage per gallons with newer technologies, regulate vehicle idling times, perform regular truck maintenance, and develop shorter routes that are less likely to meet high traffic congestion times.

Peregrine’s 100 plus truck fleet is made up of high priced diesel engines. Peregrine has the opportunity to convert their diesels engines and raise their truck’s mileage by purchasing Westport diesel spark injected natural gas engines. There are other trucking companies, like UPS, that have begun to convert their diesel engines into natural gas powered engines that are developed by Westport Innovations Incorporated (WPRT). Westport’s president and COO Michael Gallagher states that “Westport’s customers will see the benefits of lower fuel costs and ultra-low exhaust emissions from these new CNG-DI technologies we are advancing with Westport. Westport’s high-pressure direct injection of natural gas represents the future of NGVs” (Foundry Management & Technology, 2006). David Urani has mentioned “one theme that continues to be promising, particularly here in the United States, is that of the flourishing natural gas industry” (2013). The average U. S. price of diesel was around $3.00 in 2006 and has increased to around $4.50 today. According to Norm Shade, “in June 2012, the CNG pump price was $1.50 to $2 less per gallon equivalent than gasoline or diesel” (2012). It is projected that two gallons of GGE would produce the same amount of mileage as one gallon of gas.

Each truck averages around 22 miles per gallon on the current diesel engine at $4.50 per gallon. It would take two gallons of GGE at $2.00 per gallon to travel the same mileage as one gallon of diesel fuel. Peregrine would save fifty cents on every 22 miles that are traveled during deliveries and the community would benefit with less pollution being created in the delivery process. Using data, I have determined that the average mileage of the fleet per week is 50,000 miles and that the fleet will travel 2,600,000