Last month Chesapeake Energy (NYSE:CHK), the second largest U.S. producer of natural gas, terminated its natural gas vehicle team. Since then, speculation has circulated that the E&P giant is leaving the natural gas vehicle market. Sure it was a surprise to see the natural gas vehicle team laid off, but it seems this move was really done to foster a more coordinated approach in supporting this promising market.
Chesapeake is now hoping industry partners (corporations and trade associations) become more active in championing the benefits of using natural gas to fuel transports. To me this implies that Chesapeake, which still maintains a relationship with General Electric (NYSE:GE) for CNG In A Box, doesn't want to be the only big player standing on the soap-box, and this is likely why Lawler let the team go.
UPS (NYSE:UPS) is accelerating its presence in liquefied natural gas (LNG) fueling stations. Cummins Westport, a joint venture of Cummins and Westport Innovations (NASDAQ:WPRT), received an Advanced Technology Award for its natural gas engine technology, which can help the U.S. lessen dependence on foreign oil. Additionally, General Motors (NYSE:GM) recently announced it was building a bi-fuel version of the 2014 Chevrolet Impala that can run either on gasoline or CNG.
John Licata has no position in any stocks mentioned. The Motley Fool recommends General Motors, United Parcel Service, and Westport Innovations. The Motley Fool owns shares of General Electric Company and Westport Innovations. 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.