The Bullish Case For Natural Gas Related Stocks - Part 2
Under almost any scenario, the fuel cost reduction on only the number of high mileage vehicles - 600,000 (2 million x 30%) is BILLIONS of DOLLARS in annual savings. This is absolutely ENORMOUS! A potential savings of this magnitude supports MASSIVE investments for engine conversions, infrastructure, and retail opportunities. Companies adopting the technology can earn HUGE returns on investments which in turn gives substantial pricing power to the companies developing the technology and companies providing infrastructure components (expanding volumes and margins).
I could continue on with the lower mileage heavy duty trucks, medium duty trucks, light duty trucks and everyday cars but, I think you get the idea that the demand for corporate efficiency and a competitive advantage will be driving industry adoption of natural gas for decades to come.
The reality is even better because as long as the structural price differences remain (natural gas prices less than diesel, the magnitude of savings (BILLIONS) will drive the paradigm shift toward adoption of natural gas and support billions of dollars in investments. Additionally, because of the ROI and competitive advantage for early adopters, this change will take place no matter what the overall economic conditions within the United States are at the time, making this a premier area to invest in over the short and long term.