Chesapeake Energy Corporation (CHK), Clean Energy Fuels Corp (CLNE): Here’s Why We’ll Never See Cheap Oil Again

This is a trend we will have to get used to in the U.S. Overall gasoline consumption has gone down by 16% since its peak in 2005, yet we have seen prices climb 57% since then. This is all because overseas demand has grown, and will continue to grow by one-fifth between now and 2035. As long as these premium markets around the world will pay top dollar for oil, then there is little chance that the U.S. will see any price relief.

What a Fool believes
The idea of energy independence and lower oil prices do not go hand in hand. Whether it be the high cost of our newfound resources, or the high prices others are willing to pay for them, it is highly unlikely that U.S. production will lead to a sustained drop in oil prices. Consumers who want to lower their energy costs should look toward other fuels to meet their energy needs. Clean Energy Fuels Corp (NASDAQ:CLNE) boasts that a gallon equivalent of natural gas is $1.50 less than diesel, and this 40% cost reduction is causing the U.S. trucking industry to take a hard look at converting long distance fleets to natural gas.

The article We Will Never See Cheap Oil Again originally appeared on Fool.com.

Motley Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow him at Fool.com under the handle TMFDirtyBird, on Google +, or on Twitter, @TylerCroweFool.The Motley Fool recommends Clean Energy Fuels. The Motley Fool has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy Corporation (NYSE:CHK), Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy.

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