The Massive Opportunity for Natural Gas

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics around the investing world.

Southwestern Energy CEO Steven Mueller thinks now is the time to make natural gas a bigger part of the transportation sector. It's cheap, it's abundant, and it's good for our environment. Unfortunately, the switch is expensive from an investment standpoint. It takes capital to create a distribution system, and customers need to pay higher prices right now. The government could possibly provide some incentives to push the transition, but it will happen regardless. Producers like Chesapeake Energy are investing in the demand side of the equation, and companies such as FedEx are leading the effort on the corporate side. Clean Energy Fuels continues to invest in distribution for long-haul trucking, and many existing stations are adding natural gas as an offering. David thinks the best way to play the transition is Westport Innovations. The company designs fuel systems that burn natural gas. It's working to cover the entire space, from passenger vehicles to heavy duty, and is the technology leader by far.

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David MeierandJohn Reeveshave no positions in the stocks mentioned above. The Motley Fool owns shares of Westport Innovations and Chesapeake Energy.Motley Fool newsletter services recommendClean Energy Fuels, FedEx, Chesapeake Energy, and Westport Innovations. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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