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How Natural Gas and Oil Prices Are Linked

A barrel of oil has a heating value of of about 6 million BTU. At $100 per barrel this is equal to $16.67 per million BTU. Thus, on a thermal linkage, the price of natural gas would be $16.67 per million BTU or per 1000 cubic feet(heating value of NT is about 1000 BTU/cubic foot).