This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Natural Gas Bill Could Be Stock Bonanza

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

By Nathan Slaughter

NEW YORK ( StreetAuthority) --Amid all the gridlock in Washington, a little-known bill that could create jobs and be a crucial key to our energy future is showing signs that it could get passed any day now.

Even better, it could lead to yet another green light for investors in a certain group of stocks.

It's called the New Alternative Transportation to Give Americans Solutions Act, or Nat Gas Act.

On Sept. 21, following a general conversation about energy tax incentives, two separate subcommittees within the U.S. House Ways and Means Committee opened the floor to debate, and several members stepped forward to discuss the pros and cons.
A little-known bill could be a bonanza for commercial natural gas backers.

It has been a while since the first attempt to speed up the development of natural-gas-based transportation stalled out in Congress. But this second iteration, again championed by billionaire industrialist T. Boone Pickens, seems to have more traction.

The bill (H.R. 1380) has 186 cosponsors and enjoys broad bipartisan support. It's still a long road to the president's desk, and the legislation could get derailed at any point along the way. But there's vigorous discussion taking place right now -- and for proponents, that's at least a start.

So how could passage of this bill benefit investors? The Nat-Gas Act provides heavy financial incentives to encourage the adoption of vehicles that run on compressed natural gas (CNG) and other gas-derived fuels.

Among other perks, the bill specifically calls for infrastructure credits to help defray the expense of installing fueling stations, along with a credit to reimburse up to $7,500 for passenger trucks and $64,000 for commercial trucks that run on natural gas fuels.

In an era where high gas prices are acting as a brake on the economy, the switch to cheaper CNG (which can save $2 per gallon at the pump compared with diesel) is a no-brainer in the eyes of some -- which is why fleet owners such as Wal-Mart (WMT - Get Report) and UPS (UPS - Get Report) are slowly making the transition.

If even half of the heavy-duty trucks on the road make the switch, the United States could cut its appetite for foreign oil imports by 1.2 million barrels a day. At current prices, that's $100 million staying here in the U.S. each day.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CLNE $2.89 0.00%
CHK $6.78 -5.00%
RRC $40.76 -2.70%
WMT $68.92 -0.72%
UPS $104.89 -1.50%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs