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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Giordano Bruno who wrote (90269)1/8/2008 1:31:52 PM
From: sea_biscuit  Read Replies (3) | Respond to of 110194
 
Anybody know why natural gas is at 7 while oil is at 97 or so? The price ratio is supposed to be 6-to-1 since that is the ratio of the energy that one can get from one barrel of oil vs 1000 cu ft of natural gas.

Is this because oil can be shipped more easily than nat gas can be? Or is this because the US imports 60% of its oil from far away while it imports only 15% of its nat gas from neighboring Canada? Or both? Or any additional reasons?