The Fuel Of The Next Century

| July 21, 2010

We’ve been talking about U.S. reliance on crude oil in recent articles. We’ve seen some facts and figures in regards to our dependence on crude.  In case you missed it, here’s a quick recap…

With just under 5% of the world’s population, the U.S. uses 25% of the world’s oil.  And we import nearly 20 billion barrels of oil a year from other countries.

Much of it from countries that don’t really care for us…

Imported oil accounts for over 60% of the oil we use.  And nearly 65% of the oil we use goes into transportation.  Not only getting commuters back and forth to work, but also getting goods distributed across the country.

These numbers may not seem so significant, but in reality, our national security depends on oil from overseas.

You see, according to Securing Americas Future Energy (SAFE), a mere 4% shortfall in daily global supply of oil would shoot prices higher by 177%.

That’s right, $216 for a barrel of oil!  That translates into about $8 for a gallon of gas…

Do you think this would impact our economy?  How would you deal with high prices?

You might struggle for a few weeks, but beyond that, all bets are off…

You see, the U.S. economy was built on the back of cheap oil.  You may not realize it, but many basic conveniences are possible because of (cheap) oil.

Jumping in the car to run to the grocery store is a basic task we’re all familiar with.  If gas prices were to surge, obviously the trip would become much more expensive.  But the price of groceries would jump right along with oil prices.

After all, groceries get to the store via a tractor-trailer burning diesel fuel… and diesel comes from crude oil.  The American supply chain would become grossly inefficient.

The cost of transporting goods would rise dramatically.  And those higher costs would be passed down to the consumer.  That consumer is you and me… the days of cheap living would be over, until oil prices came back down.

As you can see, we need alternatives to avoid this nightmare scenario.

Fortunately, a handful of technologies can reduce our dependence on oil… and make investors rich at the same time!

We talked about electric cars for the daily commuter recently.  But what about alternative fuels for the supply chain?  Can truckers run their big rigs without being subject to high oil prices?

Batteries won’t work for truckers hauling goods long distances.  Battery technology can’t handle the weight of the trucks and the goods they haul.

But there are other technologies that can.  Technologies based on alternative fuels we wouldn’t have to import from overseas.

We have enormous quantities available right here in the U.S…

I’m talking about Liquefied Natural Gas (LNG).  LNG comes from natural gas that’s been super-cooled to a liquid.  LNG burns cleaner and it’s also cheaper than diesel fuel.

And Clean Energy Fuels (CLNE) is leading the way with LNG…

CLNE is in the business of providing natural gas products for vehicles. Currently the company is providing LNG to city, county, and state vehicles in a number of areas.

Vehicles like garbage trucks, buses, and service vehicles are all using LNG.

But regional delivery companies are starting to sit up and take notice as well.  They’re realizing LNG vehicles are cost effective over the long run.  LNG engines run cleaner and last longer than traditional diesel engines.

When engines last longer, engine repair and replacement costs go down.

Companies like CLNE are changing America’s energy landscape…

CLNE is expanding their network of filling stations.  By making the fuel more readily available, trucking companies are more likely to make the switch.

When the heavy transportation industry realizes the benefits of LNG, there may be a large-scale shift.  Diesel engines will be replaced with LNG engines for many applications.  Not only will this make trucking companies more efficient and green, it’ll reduce our dependence on foreign oil.

This will make the U.S. less vulnerable to high oil prices.  And it will also keep our money right here in the U.S… where it belongs.

Take a look at CLNE for your portfolio.  Investors who get in on this trend early could be positioned for big gains…

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Category: Stocks

About the Author ()

Justin Bennett is the editor of Commodity ETF Alert, an investment advisory focused on profiting from the ebb and flow of important commodities via ETFs. The commodity veteran and options specialist is also a regular contributor to the Dynamic Wealth Report. Every week, Justin shares his thoughts with our readers on a variety of commodity-related topics. Justin is also a frequent contributor to Commodity Trading Research’s free daily e-letter. And he’s the editor of another highly successful and popular investment advisory, the Options Profit Pipeline.

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