Compressed Natural Gas Is Catching On: Cummins Inc. (CMI), Westport Innovations Inc. (WPRT)

As the transportation market continues to whet its appetite for natural gas, this growing demand for the fuel is hopeful news for energy companies like Chesapeake Energy Corporation (NYSE:CHK) . As the nation’s No. 2 producer of natural gas it needs to see increased demand for its profits to pick up. The company is putting money behind that hope; it invested $160 million into Clean Energy to help fund that company’s ambitious plans to build out the infrastructure necessary to make the switch to natural gas a reality.

That being said, as the price of natural gas picks up from new demand it does affect the conversion economics for transit and refuse operators. Still, there is enough of an environmental incentive as well as a bit of patriotism at play to make the switch palpable, even if natural gas prices do tick up a bit.

That is why the momentum toward a natural gas economy has only just begun. While there are a myriad of opportunities for investors in this field, you shouldn’t look past the potential of Clean Energy Fuels. It’s poised to make a big impact on an essential industry. Read all about Clean Energy Fuels in our brand-new report. Just click here to get started.

The article Compressed Natural Gas Is Catching On originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo owns shares of Westport Innovations. Matt DiLallo has the following options: Short Jul 2013 $35 Puts on Waste Management. The Motley Fool recommends Clean Energy Fuels, Cummins, Waste Management, and Westport Innovations. The Motley Fool owns shares of Cummins, Waste Management, and Westport Innovations and has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy.

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