6 Stocks to Benefit From Truckers' Switch to Natural Gas
Given the boom in North America's production of natural gas, there is a glut of it and it is selling at low prices not seen in a decade. Once converted to compressed natural gas (CNG) or liquefied natural gas (LNG) for use in compatible engines, it costs about 42% less than diesel on a per-gallon basis. The Department of Energy's Energy Information Administration forecasts that this difference is likely to be long-lasting.
But so far, natural-gas-powered long-haul trucks haven't been a practical alternative to diesel, since there are few natural gas refueling stations nationwide.
Its use has been limited to specific types of fleets, such as taxis or light delivery trucks, operating within a specific range of a fuel station.
But that's changing as the trucking industry is the early phases of major change.