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To: contangle who wrote (165038)3/5/2012 6:31:32 PM
From: KyrosL1 Recommendation  Read Replies (1) | Respond to of 206178
 
re: oil at $ 106/bbl and NG at $ US 2.355/MMBtu

A cubic foot of NG has about 1MBtu. One thousand cu ft have 1MMBtu and are energy equivalent to 1/6 barrel of oil. So oil is (106/6)/2.355 = 7.5 times more expensive than NG on an energy equivalence basis.



To: contangle who wrote (165038)3/5/2012 6:40:24 PM
From: E_K_S  Respond to of 206178
 
Contangle - This was from Saturday's Barrons.

Barron's Feature | SATURDAY, MARCH 3, 2012
Consol's Energy Alternatives
By SANDRA WARD | MORE ARTICLES BY AUTHOR
In a world hungry for cheap energy, this Pennsylvania company has a valuable legacy in coal and a buoyant future in natural gas. Investors should take more notice.
(Note: From Barron's Online edition may require subscription. If you search the article title w/i Google you will get the full version of the article from their link)
goo.gl

From the article:"...Compared with the price of crude, natural-gas prices are at historic lows. Crude has typically traded in a range of six to eight times the price of gas on an energy-equivalent basis. At a recent $108.84, crude oil is about 45 times that of the $2.43 per million British thermal units that natural gas is commanding, a differential that many investment professionals say can't be sustained. Coal is cheap, too, trading almost equivalent to gas at $2.69 per MMBtu, while oil is at $18.33 per MMBtu....".