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.
Taylor Muckerman has no positions in the stocks mentioned above. The Motley Fool owns shares of Clean Energy Fuels and Ultra Petroleum and has the following options: long JAN 2013 $16.00 calls on Chesapeake Energy, long JAN 2013 $25.00 calls on Chesapeake Energy, short JAN 2014 $15.00 puts on Chesapeake Energy, long JAN 2014 $20.00 calls on Chesapeake Energy, long JAN 2014 $30.00 calls on Chesapeake Energy, short JAN 2014 $20.00 puts on Ultra Petroleum, long JAN 2014 $30.00 calls on Ultra Petroleum, long JAN 2014 $40.00 calls on Ultra Petroleum, and long JAN 2014 $50.00 calls on Ultra Petroleum. Motley Fool newsletter services recommend Clean Energy Fuels, Exelon, and Ultra Petroleum. 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.