More Positive Things in the Natural Gas World
Over the past year, natural gas has seen more and more good news. Looks like more good news is to come. According to Jeremy Bowman there a also a number for companies seeing the benefits too.
The recent run was just icing on the cake for investors, as Clean Enegy has jumped more than 150% since its low in October at $9.02. The rock-bottom prices for natural gas (a diesel gallon equivalent of Compressed Natural Gas costs just $2.36) have caused a surge in other natural gas plays like Westport Innovations (Nasdaq: WPRT ) , which has nearly doubled in the last four months. Westport designs natural gas engines for industry heavyweights including Ford (NYSE: F ) and Cummins (NYSE: CMI ) .
The network effect
Every additional contract that Clean Energy signs is good news for others in the natural gas fueling industry. With natural gas prices sufficiently lower than those of gasoline, the argument for the alternative fuel is clear. It’s cleaner, producing up to 30% fewer greenhouse emissions than gasoline and diesel, and it comes from an abundant source — with a projected 120-year supply just in North America.
Replacing gasoline with natural gas en masse, however, requires time, investment, and a range of stakeholders buying in to the new fuel. Vehicle manufacturers need buyers, drivers need a network of fueling stations, and those fueling stations depend on a critical mass of drivers to offset the capital costs of building them.
Natural gas has a lot of potential to make investors money. There are many energy investments out there, but natural gas could be a great option.
Quotes taken from report by Jeremy Bowman, Read the entire article here.
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