In an industry that is still trying to get off of the ground, risks are littered around like land mines. Clean Energy Fuels (Nasdaq: CLNE ) is a company that is helping build a nascent natural gas fueling infrastructure within the United States. Due to its infancy, car and truck manufacturers have been slow to buy in and corporate executives have been largely reluctant to switch their fleets over to the cleaner burning fuel. Unfortunately for both Clean Energy Fuels and the auto industry, this is a give and take relationship. Both industries need each other to move forward in order to ensure the success of either.
For the past few years, natural gas has made a lot of sense as a substitute for gasoline in automobiles due to record low prices per MMBtu in the commodities market. Lately, however, prices have begun to creep up above $3 per MMBtu, and there is a host of antagonists that could lead these prices higher, putting downward pressure on this budding endeavor. Several of these are discussed in the video below. Be sure to take a look prior to making any investment decisions regarding CLNE.
While there are multiple risks involved with this company, with high risk comes the potential for high reward. That being said, there are opportunities abound with regards to CLNE. Read all about them, along with other aspects of the company in our brand new report. Just click here to get started.