Natural gas is the topic du jour in the energy world. Even despite the 25% rebound in prices over the past month, natural gas still sits near historic lows and down about 44% from 12 months ago. The effectiveness of fracking as an extraction technique, an unseasonably warmer winter, and companies drilling to hold their acreage have all combined to push supplies higher without the commensurate demand to clear out inventories.
These so-crazy-low-I-can't-believe-it natural gas prices have caused many to start wondering whether natural gas could become a viable fuel source for tomorrow's vehicles. There are a lot of reasons to buy the story; natural gas is cheap, plentiful, and readily available as a domestic resource. It's a win-win-win, and that takes us to our two biggest winners today.
How it's driving markets today
Both Westport Innovations
I don't expect many other states to quickly take up this policy. Oklahoma's economy is intrinsically linked to the success of natural gas. The state houses natural gas energy juggernauts including Chesapeake Energy
One more stable winner
While I'm optimistic on the futures of both Clean Energy and Westport, there is no denying their volatility. Both are highly speculative stocks that swing in exaggerated movements to the market or little pieces of news. It's also worth noting that neither company currently reports a positive net income, either.
Instead, you may want to consider Ultra Petroleum
As good as these natural gas stocks are, there is one energy stock that could be even better. In fact, it could be The Only Energy Stock You'll Ever Need. It's a well-positioned equipment provider that's poised to make investors today rich off the next energy spike. Read more about it.
Austin Smith owns no shares of the companies mentioned here. The Motley Fool owns shares of Devon Energy, Ultra Petroleum, Westport Innovations, and Chesapeake Energy. Motley Fool newsletter services have recommended buying shares of Devon Energy, Ultra Petroleum, Chesapeake Energy, Westport Innovations, and Clean Energy Fuels. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.