Can Natural Gas Transportation Take Off?

The following video is part of our "Motley Fool Conversations" series, in which Industrials editor/analyst Isaac Pino and research analyst Lyons George discuss topics across the investing world. Natural gas is all the rage in the energy sector due to abundant supply and plummeting prices. However, can we as a nation relieve ourselves of our dependence on foreign oil and embrace this new fuel source? When it comes to transportation, there are plenty of moving parts that could impede our progress. However, Isaac and Lyons shed some light on the companies that can make the transition in a seamless fashion and reap significant savings along the way.

The economics of natural gas need to make sense for American businesses to embrace this broad shift. Right now, that's clearly the case for companies like Waste Management. For investors, there are other opportunities to ride the wave of soaring oil prices, however. Take a look at the top oil stocks recommended by Motley Fool analysts in a recent special free report: "3 Stocks for $100 Oil." The report won't be available forever, so we invite you to enjoy a free copy today. You can access it by clicking here. Fool on!

Isaac Pino has no positions in the stocks mentioned above. Lyons George has no positions in the stocks mentioned above. The Motley Fool owns shares of Waste Management. Motley Fool newsletter services recommend 3M Company, Clean Energy Fuels, and Waste Management. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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  • Report this Comment On May 28, 2012, at 8:35 AM, kurtk23 wrote:

    I disagree when Isaac says that because gasoline vehicles are more efficient that we are "actually saving money" on a tank of gas...it costs me way more per mile to drive today than it did 10 years ago...the efficiency of vehicles has not kept up with the rise in cost of a gallon of gas. However, I still feel that the natural gas infrastructure will not be in place until more than 10 years out. Needless to say, I'm still young enough (I hope) to realize it and am currently invested in natural gas stocks.

  • Report this Comment On May 28, 2012, at 1:02 PM, TMFBoomer wrote:

    @kurtk23

    True, the price of transportation fuels, notably gasoline, has increased beyond the efficiencies gained in vehicles, so maybe my wording was slightly off. Still, depending on what kind of car you drive and where you live in the country, the soaring prices of oil are not crushing consumers when you look at expenditures on gasoline as a percent of income. A decade ago, Americans spent about 2% of disposable income on motor vehicle fuels, a figure that is now up to about 3% across the country. I've been surprised at how well we've managed to absorb higher fuel costs. Further, we're actually seeing a drop-off in vehicle miles travelled. I think we'll see even greater diversity when it comes to forms of transit in the next decade, whether for personal transit in cities and rural areas or trucking fleets. Natural gas will be a part of that mix.

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