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Investors who complain that nothing is cheap these days aren’t paying attention.
Today, natural gas currently sells for once-in-a-lifetime, fire-sale prices. The price has fallen 68% from the highs of 2008. And last traded this low back in 2002.
Buying natural gas at today’s prices is like buying a gallon of gasoline for about 87 cents a gallon.
With about as much certainty as I can muster, I believe natural gas prices will rise over the next five years.
How is that possible? The simple answer is technology.
Sure, we already heat our homes with natural gas and use it in manufacturing. And we’ll continue to do so.
But technology is making it possible to use natural gas in the same way we currently use oil. We can put it in cars, trucks and buses. We can put it in ships and export it around the world
The immediate and obvious growth potential is clearly in vehicles.
Right now, there are just 1,000 natural gas fueling stations in the U.S. Compared with the 100,000 gasoline stations, it’s clear that these are the early days for natural gas.
Today just 0.1% of natural gas is currently used to fuel vehicles. That’s right – one-tenth of one percent. That’s tiny, especially when compared with crude oil, where 68% is used for transportation.
In the U.S., there are only 120,000 natural gas powered vehicles. That number is tiny, but growing quickly thanks to technological advancements.
There are several companies that sell kits that can be used to convert a gasoline-powered car to natural gas. And even the big automakers – known to be slow to adopt – are getting in on the natural gas opportunity.
Chrysler, Ford, and General Motors already offer dual-fuel pickup trucks. And in 2014, the Chevrolet Cruze will be available with natural gas conversion at a cost of around $25,000.
Companies that are in the oil and gas business are converting their own vehicles, and building their own fueling stations. Apache – one of the larger natural gas production companies in the U.S. has built 21 fueling stations thus far. And the company has converted more than 450 vehicles to natural gas already.
The simple fact is that these are the very early stages for natural gas powered vehicles. Much like the Internet and other technological advancements, it’s best to be a little early than a little late to big growth opportunities.
That’s why every investor should take notice of the major changes that are already underway. Natural gas won’t topple gasoline or diesel anytime soon. But the cheap cost and domestic abundance makes this fuel a no brainer.
We see big profit opportunities on the horizon for a select group of companies in the U.S. energy sector. Growing production and technological innovations will change the economy and create a profit windfall for early investors in the right stocks. And it’s my job to alert you to these phenomenal opportunities.
If you want to learn more, I invite you to join me for a live investing seminar called U.S. Energy Alert: 3 Profit Plays for 2014 and Beyond. The event takes place this Thursday at 2pm Eastern Time.
The event is 100% free – but you must reserve your seat by clicking here now. I hope you’ll join me on Thursday to learn more about the exciting transformation of the energy sector.
During the presentation, I’ll share details on the three biggest opportunities. Plus I’ll give away two of my favorite investment ideas. And I’ll be taking your questions live during our Q&A session. There are limited seats available – so reserve your spot today (click here). I hope to see you Thursday afternoon.