Turley Muller

Oil and Natural Gas Will Decouple - Big Time

I think oil/gas have ready decoupled. The ratio is 11 to 1, with the longterm avg ratio being 6:1, with some people opining that 8:1 is reasonable.

NG demand and usage will definitely increase. Your bullet points- NG fits them, local, developed infrastructure, abundance, non dependence on terrorist nations.... It's also clean. Yet, NG is mostly used for utilities. I can't ever envision engines running on NG, I'm sure it could be converted into some type of engine fuel, at a high cost, similar to alternative fuels. We could use more NG in power by replacing coal and heating oil plants. I think that will be a trend.

CHK is a great NG company, largest DOM producer (or about to be) of gas. see this article I wrote:

seekingalpha.com/artic...