What the heck is “Eagle Diesel” … and will it make us rich?

OK, OK, I'll finally take a look at those "Eagle Diesel" natural gas Stocks teased by Frank Curzio!

Frank Curzio is pitching this idea of “Eagle Diesel” to get subscribers for his Small Stock Specialist newsletter (published by Stansberry & Associates, used to be called Penny Stock Specialist).

He used to focus solely on stocks that trade under $10 a share, but from what I can tell he has recently been expanding his bailiwick to encompass both low-priced stocks and small cap stocks (meaning, stocks that have a low price per share, regardless of company size, as well as stocks that have a small market capitalization of under a couple billion dollars or so).

We’ve written about many of his ideas over the years, some very good and some very bad, and I do often like his ideas and arguments — for what it’s worth, he also puts out probably the best free podcast in the investing world (S&A Investor Radio), and he’s got the marketing might of Stansberry behind him so he always gets my readers’ attention.

Here’s how he gets us interested this time:

“100% American Made ‘Eagle Diesel’ Fuel Goes Nationwide – Massive Rollout Beginning Now

“Dubbed the ‘OPEC Crusher’ by oil and gas insiders, ‘Eagle Diesel’ could soon replace traditional gasoline… end US dependence on foreign oil… and make early investors downright rich….

“A revolutionary type of fuel will soon be on sale across the United States and Canada.

“Cheaper than regular gasoline…

“Cleaner than regular gasoline…

“And 100% American made…

“… fuel promises to end US dependence on foreign oil and cut prices at the pump in half… all at once.”

That’s the lead-in — and how can you resist it?

And this Eagle Diesel pitch is not brand new — he’s used it before to promote his newsletter, but we didn’t write about it the first time he tried this ad and it recently began running again, generating a lot of questions from our readers, so I thought we’d better dig in and have a look.

Curzio tosses some more fuel on the fire for us here:

“… for early investors, it presents the kind of moneymaking opportunity that could turn a tiny initial stake into an absolute fortune.

“Says legendary oilman T. Boone Pickens:

‘I’ve been in the energy business my entire career, and I can assure you this 81-year-old has chased down more deals than anyone you’ll ever meet. A lot of those deals didn’t pan out – that’s just how the game is played – but every now and then a big kahuna comes along. When it does, you’d better jump on it.

‘Right now… that sort of game changer has landed right in our lap.’

“As the fuel source I’ve dubbed ‘Eagle Diesel’ goes mainstream – with a massive rollout beginning right now – my guess is that it will quickly become one of the most widely used fuels in America…

“And in the decades to come, it may totally replace traditional gasoline as the standard motor fuel in America.”

He then goes on for a few pages of rambling about how this fuel is cheap, produced locally, touted by T. Boone Pickens, and already being used by trucking fleets to cut costs, but I’ll save you all that and just jump to the key point halfway through: “Eagle Diesel” is natural gas. Liquefied natural gas, or LNG, for the most part, though also compressed natural gas (CNG), which we’ve heard quite a lot about in recent years as the boom in US shale gas has dropped the price of natural gas so far below the price of gasoline on an energy-equivalent basis.

That’s a big part of what we used to hear about as the “Pickens Plan” a few years back, too — using this cheap natural gas for transportation and therefore to displace our demand for imported oil. There’s been a lot of debate in Congress over whether or not we ought to be incentivizing natural gas, providing subsidies for natural gas engines or helping to build out the fueling station infrastructure that will have to come before mass adoption, but to some extent — particularly for fleet vehicles like delivery trucks and garbage trucks, the conversion is an easy sell with consistently low natural gas prices … and it’s already happening.

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