Cramer: Don't Buy Nat Gas on Obama's Plan to Cut Oil Imports
President Barack Obama on Wednesday mentioned the merits of increasing natural gas use for transportation to help reduce U.S. economy's dependence on crude oil imports. Cramer has long awaited this kind of blessing from Obama, yet he doesn't recommend buying natural gas names right now.
The problem, Cramer explained, is that industry has already largely switched to natural gas. Lots of power plants, for example, already use nat gas instead of oil. Coal, however, is another domestic fuel source that industry will continue to use so long as it's legal.
Cramer pointed out that diesel is made from imported oil, though. As much as 25 percent of oil important into the U.S. is used by trucks, he said. Should the U.S. decide to not power trucks with diesel, we could easily reduce oil imports by that 25 percent. For that to happen, the government should issue subsidies that will make the trucking companies switch to natural gas. Cramer doesn't think it would take too long, considering Westport Energy , in working with Cummins ,already has the technology and Clean Energy has the nat gas fueling stations.
Congress is debating a bill that supports T. Boone Pickens' plan to use more natural gas. In his speech on energy, Obama told Congress to "keep at it," but Cramer thinks he should have said more than that. He wants the president to "roll up his sleeves and fight for the darned thing."
In the end, Cramer said investors should be excited about Obama's comments on natural gas. He said it's important to remember, though, that nothing will get done until Congress votes on the nat gas subsidy.
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