gas cram

Gregor Macdonald researches the energy sector.

From the .pdf available here.

When natural gas is trading at $4.00 and oil is trading at $92.00, the price discount offered by natural gas for an equivalent amount of btu is as much as 75%.

Yes, that’s right.

Instead of obtaining oil’s 5.8 million btu for $92, one can obtain 5.8 million btu in natural gas for $23.

The economic opportunity to perform the same amount of useful labor, at 50-75% off the oil price, is not a potentiality that any economist, analyst, or policy maker can afford to ignore.

BitTooth explains how LNG tankers currently supply 23 countries.