Two Natural Gas Stocks to Buy Now Before the Transportation Revolution

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A glut of cheap, abundant natural gas is about to turn the U.S. transportation industry upside down – and it will make two companies at the epicenter of this revolution among the best stocks to buy.

Exploration and drilling for oil in America's newfound shale fields has unleashed a game-changing byproduct – enormous pools of natural gas that could meet the nation's energy needs for the next century.

In fact, the discoveries are so colossal they're set to rattle energy markets around the planet.

"North America has set off a supply shock that is sending ripples throughout the world," the International Energy Agency (IEA) said in its 2013 medium-term report.

But the first place to feel the effects will be right here at home.

You see, the supply surge will spur a massive switch away from smog-belching diesel engines to clean-burning, natural gas-powered vehicles.

Here's why…

Natural Gas Prices Tilt the Energy Market

Excessive drilling and exploration in shale fields drove natural gas prices to lows of around $2 per million British thermal units (mbtu) in 2012.

In fact, natural gas prices were so low that it became more economical for producers to simply burn or "flare" it at the wellhead as an unwanted byproduct.

But that's all changing now.

Prices have recovered to roughly $4 mbtu, as producers have begun to cut back.

But even at those levels, natural gas runs about $1.50 less per gallon than gasoline or diesel, so converting vehicles to natural gas remains attractive.

"Cheap and abundant natural gas has already facilitated the transition of the U.S. economy towards broader use of [natural gas for transport fuels]," the IEA report stated. "Natural gas will increase its share of road transport fuels to 2.5% in 2018 from 1.4% in 2010."

That may not sound like much, but the implications are enormous…

Join the conversation. Click here to jump to comments…

  1. Bonnie Ember | June 15, 2013

    Hello Everyone,

    Don't forget, that Warren Buffet is testing Natural Gas Engines for his trains. He burns more fuel than anyone in the U.S., except for the Navy.

    Check out the Russian Giant, Gazprom, trading at 3X earnings.
    Said to be coming to the NYSE. It is currently on the Frankfurt & London exchanges & can be bought for under $7.
    Very low volume. Once the HFC's pick up on her, it will be huge.

    See you at the top.

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