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 25, 2011 at 3:27

I realize Petroleum is used for many things but which single use consumes the bulk of petroleum?

 


Oil & Gas ProPermalink Reply by The_Baron on February 25, 2011 at 8:30

From the EIA:

 


Oil & Gas ProPermalink Reply by Les Bamburg on February 25, 2011 at 17:02
PG, gasoline is the largest product from a barrel of oil in the US while diesel would be the largest product in Europe.

landownerPermalink Reply by P.G. on February 26, 2011 at 4:25
I wonder how many fewer barrels of oil would be needed if half or a third of our gasoline and diesel were replaced with CNG?
Permalink Reply by Bob Klemme on February 26, 2011 at 9:18

A barrel of oil is 42 gallons so the gasoline biproduct represents just under one half of the barrel...if the graphic above is accurate.  Diesel represents about 25% of a barrel.  If we converted 1/2 of our gasoline and diesel needs to CNG then we would reduce our daily oil demand by around 35 to 40%.  This would in turn bring the price of oil down as well.  GO CNG!


landownerPermalink Reply by P.G. on February 26, 2011 at 13:21

Prices would come down if Opec didn't drop it's production to tighten supplies. But then that would just drive more to switch over to CNG..

Once CNG caught on, the party would be over for petroleum. CNG and petroleum would eventually be priced equally btu wise...

The petroleum goose will have been cooked!


landownerPermalink Reply by intrepid on February 26, 2011 at 18:59
Obama will never allow that to happen. It's obvious he has no use for an abundant, cheap and domestic fuel supply.

landownerPermalink Reply by P.G. on February 27, 2011 at 5:32
Maybe he will... He might consider anything if it meant getting re-elected..
Permalink Reply by Bob Klemme on February 27, 2011 at 10:36
We should stop focusing on trying to influence our politicians.  They will lean whichever way the wind is blowing.  Instead we should do all we can spread the news amongst our communities that CNG would help our energy crisis.  The market will have to do the work and we have to demand the alternatives with our dollars.

Oil & Gas ProPermalink Reply by Les Bamburg on February 27, 2011 at 15:52
Inteprid, this is not under the president's control but rather the buying public.  If the consumers switch to natural gas you would see an immediate effect.  
Permalink Reply by Bob Klemme on February 27, 2011 at 10:33
If we converted as discussed OPEC's influence on pricing would diminish greatly and we could rely more on our own, domestic production.  Damn!  I'm starting to sound like Pickens.

Oil & Gas ProPermalink Reply by Les Bamburg on February 27, 2011 at 15:47
PG, there is really not much reduction in oil supply as most nations are producing full out.  The high price of crude oil is primarily related to high demand and the high cost of marginal oil production.

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