Will rising oil prices drag gas prices up too

With oil prices rising dramatically because of Mideast tensions, will natural gas prices benefit

too

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landownerPermalink Reply by P.G. on February 27, 2011 at 15:21

Anyone have an idea of many cubic feet of NG would be needed to fuel half the autos and trucks in this country?

Be nice to not have to depend on the weatherman for NG pricing, huh?


Oil & Gas ProPermalink Reply by Les Bamburg on February 27, 2011 at 17:29

PG, replacing 10% of gasoline and diesel with natural gas would add 4.6 Bcfd & 2.2 Bcfd to natural gas consumption in the US.  This would increase natural gas consumption by a total of ~ 11%.  This is a reasonable target that could be accomplished and still maintain natural gas supply reliability.

 

By the way replacement of diesel must be done with LNG rather than CNG due to the energy density needs.  Also, long term natural gas prices have little to do with the weather and is more about economic growth, technology and competition with alternative fuels. 


landownerPermalink Reply by P.G. on March 1, 2011 at 2:43
If NG were trading on an equal price per btu basis with petroleum, what would NG's price be at today's oil prices?

Oil & Gas ProPermalink Reply by Les Bamburg on March 1, 2011 at 3:41
PG, if natural gas were equal to crude oil the price would be $15.52 per MMBtu based on a $90 per barrel crude oil price.  You can just divide the oil price ($/Bbl) by 5.8 to get an equivalent price on a $/MMBtu basis. 

landownerPermalink Reply by P.G. on March 1, 2011 at 4:43
Wishful thinking of course, but that would make for some serious mailbox money, huh?
Permalink Reply by Wilma Watts on March 1, 2011 at 1:41
The crude oil, natural gas, and coal sectors remain in bullish mode - the LSGI blog today talks about trends in these sectors and Warren Buffett's comments on why these might be atttractive sectors for investors:

http://www.lsgifund.com/index_files/Page960.htm
Permalink Reply by Wilma Watts on March 25, 2011 at 6:50
Lots of interesting developments this week for investors – and reports issued from various institutions.

On the energy front China’s oil demand is at near record levels, and up 10.1% year over year. The premium for low sulfur high quality crude is skyrocketing as Libyan production remains shut in. Tudor Pickering Holt mentions the potential for FX Energy (FXEN) today in a note::

http://www.lsgifund.com/index_files/Page960.htm

Energy firm FXEN makes a presentation in Houston next week. The presentation will be broadcast over the Internet and a replay will be available.

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