Investing Daily Article of the Week
There’s a $100-billion shift happening on America’s highways — and with a few simple trades, you could drive off with the most profits.
It’s a special delivery from the nation’s 1.9-million-strong truck fleet, which is ditching diesel — a fuel it burns to the tune of 25 billion gallons a year — to jump to natural gas.
Considering diesel is $3.90 a gallon, that’s almost $100 billion pulling up to a different pump.
It’s great news for truckers: the move will slice $1.50 a gallon off their fuel costs, a huge number in the low-margin shipping world, where costs eat up 95.2% of every invoice.
It’s even better news for you. We’ll tell you why in a moment.
The Wall Street Journal writes.
“Never before has the price gap between natural gas and diesel been so large, suddenly making natural-gas-powered trucks an alluring option.”
A Megatrend in Overdrive
According to Citigroup, 30% of the trucks on America’s highways will be burning natural gas by 2020.
Billionaire T. Boone Pickens — who’s already pocketed $1.4 billion from previous gas investments — puts the number closer to 70%. Now he’s pouring more money into natural gas than ever.
These numbers may sound outlandish, but we’re already well on our way. Unlike pie-in-the-sky notions like airborne delivery drones, you can go see natural-gas-powered trucks for yourself. They’re already moving a slice of the $139 billion of freight that hits the highway every year in North America — and more are rolling down the on ramp every day.
Here are just a few surprising stats on this megatrend-in-the-making:
- Freightliner has sold over 2,500 natural-gas-powered trucks so far. It’s rapidly rolling out new models and says natural gas is one of its fastest-growing segments.
- Volvo USA offers a full line of natural gas trucks. With 500 already built, they’re gearing up for higher volume.
- The natural gas revolution isn’t limited to tractor-trailers: the fuel powered 40% of trash trucks sold in the U.S. in 2012.
- Delivery giant UPS is especially motivated: it has set a goal of at least 400 natural gas trucks by the end of 2014. Procter & Gamble wants 20% of its goods shipped by natural gas as soon as July 2015.
Investors in the Driver’s Seat
Even better, natural gas has a long history of racking up big gains for investors, so getting in now couldn’t make more sense.
Here’s the proof: in the 2002-2007 gas boom, our recommendation of integrated French producer Total SA earned investors a gain of 161%.
Our buy call on producer Energen did even better, with the stock surging 387% in less than five years.
Keep in mind that we earned those returns while natural gas was just an “alternative” fuel for consumer heating and cooking. That market is just a fraction of the big numbers that are coming next.
That’s because the fuel savings—mammoth as they are — are just the start. Natural gas offers truckers so many improvements over diesel that the changeover is inevitable.
For one, it’s much easier on the environment than petroleum or diesel. Carbon monoxide emissions are up to 97% lower, and carbon dioxide up to 30%.
Not only does this make for fresher air, but it also provides evidence that the changeover won’t sputter out any time soon. Government environmental restrictions tighten every year, and natural gas will clear these hurdles more easily than any other energy source.
In short, there’s no sense resisting. Nobody loves diesel’s cost and environmental consequences, so why keep belching it into the air?
Open Road Ahead
We know what you’re thinking: there has been a lot of talk about alternative fuels in the past few years, but there’s still virtually nowhere for the cars and trucks that run on them to fill up.
That’s a fair point: this was a problem for drivers who converted to propane years ago. Electric cars face the same stumbling block today.
But with natural gas, the tipping point is already in the rear-view mirror: pumps are popping up all over the country, and some of the biggest names in the business are getting behind the shift.
There are now 596 stations, mostly at truck stops on major highways, with routes stretching from Louisiana to Maine, Canada to California.
T. Boone Pickens is helping Flying J truck stops roll out hundreds more. They’ve opened 70 so far, and they’re in the process of adding 50 more in the next year.
Shell is investing $150 million in 200-plus locations, starting with their largest truck stops.
The ENN Group — an overseas developer — is planning over 500 stations. This will cement competition and keep the race fast and furious. Other companies aren’t far behind, including natural gas behemoths Chesapeake and Duke.
In other words, as natural gas semi-trucks take to the highways, they won’t have to worry about running out of fuel.
How You Can Step on the Gas
Today is the perfect time to get natural gas working for you: the switch has taken hold and proven it has legs — but mainstream investors haven’t yet gotten a sniff of the opportunity it represents.
Remember: this is a truly revolutionary change — and that’s just for transportation fuel. We haven’t even talked about coal and nuclear, two other fuels in natural gas’s sights.
To help you get started, our research team has compiled a new free report. It’s called “Pressing the Gas: The Natural Gas Stocks That Will Displace Diesel, Coal and Nuclear.” It gives you the key facts you need to profit from the mega-shift to natural gas. It details what you need to do right now to prepare.
- 4 stocks that are expanding the reach of natural gas — and profiting at each new turn;
- 4 midstream companies with locked-in cash flows for the next decade. An income investor’s dream;
- These high-flying picks also include 3 natural gas cash cows yielding 6.0%, 7.0% and 7.7%!
This new report includes all the stock-specific fundamentals, safety assessment and financial data you need. Best of all, for a limited time, you can get a copy free just for sampling our Personal Finance newsletter.
You get to kick the tires on one of America’s top-performing investment advisories — including 3 portfolios chock full of our best investments for your money right now — with no risk and no obligation. Plus, you get this brand new report, the product of months of labor from our elite team of investment pros.
Some of our subscribers have already devoted part of their portfolios to the winners it contains, and they’re just starting to reap the benefits. We want to make sure you’re along for the ride. Click here to get started right now.
Editor’s Note: The numbers don’t lie: natural gas is about to dethrone diesel and take its place as the next major shipping fuel, and there’s no better time to get onboard than right now. We’re very proud of this extraordinary new report, and we can’t wait to get it into your hands so you can start profiting from it.