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Friday, January 13, 2012

A Bridge of Fuel (NYSE: ENB) (TSX: ENB)

Enbridge rose in today's dismal trading despite the continuing drop in the price of natural gas. The reason being that Enbridge continues to charge its clients a fee based on usage, not the actual price of the gas. Given the ice cold temperatures in Canada, where Enbridge mainly operates its pipelines, natural gas usage is on the rise as homeowners heat their homes, stoves, and water. Enbridge users pay their monthly bills for their energy just as any other company would charge.

The kicker with Enbridge is the expansion of their pipelines. Governments in the US and Canada still need to embrace natural gas as a bridge fuel for the future. Enbridge already supplies gas to people's homes. Wouldn't it be nice if customers can fuel their cars from their own garages. Companies such as Westport Innovations have already teamed up with large players such as Cummins to produce nat gas engines. The combination of the natural gas companies, suppliers, engine makers, pipelines, and the government would be a clear step in getting North America back on track to using the precious fuel instead giving it away to foreign countries.

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