Brian Harremon drives a Freightliner M2 112 truck…
But he pays less for gas than most soccer moms do for their minivans.
You see, the M2 112 operates entirely on compressed natural gas, allowing Brian to pay about $1.75 less per gallon than you or I do using gasoline.
And when Brian fills up his truck, he heads to a CNG fuel station, the same way you or I would head to a Shell station when the gas light kicks on.
Now, even though the public still has a few reservations about making a full transition to CNG as a fuel, it’s a perfect fit for Brian, who drives through Oklahoma, Texas, Louisiana, and New Mexico.
To him, there’s no room for debate.
The Quiet Transition
“A few weeks ago I was in Tulsa, and they have a new station that I try to make it to every time I’m in town,” Brian said.
It helps that many of the states where he works have been very receptive to natural gas as a transportation fuel.
In Texas, Brian’s home state, there are over 100 CNG stations where he can refuel his truck
That’s up from 69 stations a couple of years ago, and it has led thousands of Texans to make the switch from traditional gasoline engines to cars, trucks, and semis that run exclusively on natural gas.
And we can easily see why a truck driver — or anyone, for that matter — would switch from traditional fuel to compressed natural gas…
It’s simply that much easier on the wallet.
The Lowest Price Possible
The Energy Information Administration recently reported that gasoline prices have been on the rise over the last year:
And it’s almost impossible to predict whether prices will continue to climb or fall again. The geopolitical turmoil that has been raging across regions like the Middle East and Eastern Europe has wreaked havoc on the global crude market.
Remember, despite the strong oil boom taking place in North America, our gasoline prices are more closely tied to global oil prices — which are volatile, to say the least.
You Use This Every Day
Regular folks who rely on gasoline to drive every day saw prices climb above $3.60 per gallon for regular and well past $4 for diesel and more premium grades.
Yet that doesn’t worry CNG drivers.
My veteran readers here at Energy and Capital are well aware of the fact that natural gas is incredibly cheap in the United States.
Unlike oil, natural gas isn’t tied to global prices that can change on the whims of dictators, insurgents, or the rest of the chaos throughout the rest of the oil-producing world.
Look, I realize that CNG as a fuel hasn’t caught on in a big way. It may never do so in the way petroleum has dominated the United States’ transportation sector for the last century.
However, we would be remiss to ignore the opportunity altogether. And thanks to technological innovation in oil and gas fields, many drivers are making the switch to CNG-powered vehicles.
There are over 7,000 of them in Texas alone, and that number is always rising.
But again, CNG vehicles are just one small way we’re transitioning to a natural gas-fueled nation. The fuel is a necessity to the manufacturing of steel, fertilizer, and chemicals, and it also can power your stove, heat your home, and even improve the efficiency of oil extraction.
Of course, the U.S. is also gearing up to export natural gas by the end of 2015 in order to take advantage of higher prices in Asia and Europe.
Make no mistake, dear reader: The way we use — and profit from — natural gas is about to change.
And with the EPA’s ongoing war against coal, natural gas is coal’s clear-cut successor.
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Buy the Last Bottom in Energy
Last winter, you probably noticed that your heating bill went bonkers after the polar vortex sent Arctic winds through most of the continental U.S., creating record-low temperatures and considerable bouts of snow and sleet.
It took just one harsh winter for the price of natural gas to double from $4 to $8 at its height.
Naturally, doubling the price of natural gas will not only push costs higher, but it could also possibly reignite drilling activity, which has fallen to ultra-low levels over the past six years.
Since natural gas prices are so low right now — about $3.85/MMBtu — it’s a no-brainer to look to companies trading at a discount.
And there’s no better place to find them right now than in South Texas.
Granted, most people only know the Eagle Ford Shale because companies are extracting almost 1.6 million barrels per day from the play. But it’s worth noting that nearly 7 billion cubic feet of natural gas is also produced in South Texas.
Thing is, few investors even realize it… yet.
And let’s not forget the fact that Texas has always been one of the best environments for oil and gas companies. Not only is the low tax burden attractive, but the weather is typically stable year-round (polar vortexes aside).
More important, however, is that there are a few Eagle Ford investment gems out there.
In fact, you can narrow your search further through my latest investment report. Inside, you’ll find three sorely undervalued stocks that are poised for rapid growth over the next 12 to 18 months.
Until next time,
Keith Kohl
Check us out on YouTube!A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.
For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.
Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.
