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Iran and Pakistan Are Clearly Winning This Battle

Taylor Muckerman
May 19, 2013

Typically, when you envision the United States, innovation and trend-setting probably fit into the overall picture. However, when it comes to the most recent rumblings in the transportation sector, we are far, far behind many still-developing nations. Many of these said nations are ones we have been at odds with politically and militarily, some right up to the present. So what gives? Is the United States on its way to catching up, or are we simply too far behind?

Because of the combination of the American entrepreneurial spirit and years and years of built-up research and development, natural gas production has skyrocketed domestically over the past few years. The explosion of production has been so great that we aren't even sure what to do with it all. Companies are required to foot so much of an upfront cost that they continue pumping gas out of the ground even when it's uneconomical. They simply flare it -- i.e., burn it off into the atmosphere. 

Thankfully, enterprising folks such as T. Boone Pickens are around to start companies such as Clean Energy Fuels (NASDAQ: CLNE) to help capitalize on this "problem." For several years now, he and his management team have been preaching the importance of using natural gas as an efficient and environmentally friendly fuel source. The problem remained that our infrastructure was severely lacking and there simply weren't sufficient automobile choices that could run on natural gas. 

Rather than tackle both problems, Clean Energy Fuels decided to address the infrastructure dilemma in hopes that established auto and engine manufacturers would hold up their obvious end of the bargain. Support from fleet vehicles is quickly gathering steam, with, among myriad others, Waste Management (NYSE: WM) running its refuse fleet on natural gas and UPS (NYSE: UPS) hoping to add 700 new natural gas trucks to its existing triple-digit natural gas fleet. Long-haul truckers will probably begin to boost their use of natural gas now that multiple engine choices are emerging from the partnership between Cummins and Westport Innovations (NASDAQ: WPRT). Unfortunately, though, consumers don't have many options available to them.

Even with all of this momentum, America still lags some very unlikely countries when it comes to natural gas usage as a transportation fuel. If you want to feel embarrassed, simply take a look at the top 10 countries ranked by number of natural gas vehicles adopted. At the end of 2011, the United S