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Equity Opportunities in Natural Gas

REGARDING THE RATIO OF OIL AND GAS PRICES: The energy content of one barrel of oil is about equal to 6000 cu. ft. of natural gas. Therefore, natural gas should be at least $19/1000 cu. ft. when oil is $115/bbl. Remember, crude oil is nasty crud that takes a multi-billion dollar refinery to turn into a usable product.

Comparing the price of natural gas to gasoline....the energy content of 1000 cu. ft. of natural gas is equivalent to 8.3 gallons of gasoline. When gasoline is $3.50 per gallon, natural gas should be $28.9/ 1000 cu. ft.

With natural gas currently at about $10.50 per 1000 cu. ft. it is one third the cost of gasoline. And it burns cleaner and doesn't require the complex emission devices to burn cleanly. It is hard to understand how natural gas prices can be so low and why more industries and vehicles don't switch to natural gas. Better yet, why do people still burn fuel oil for heating??!!!

Obviously, natural gas is an incredible bargain at $10 per 1000 cu. ft. How long will this bargain remain underutilized?