Wednesday, February 23, 2011

Natural Gas Price Snooze As Oil Skyrockets

Though yesterday West Texas Intermediate oil  skyrocketed 8.5% to $93. 57 and Brent oil reached $106, Natural Gas prices barely moved. 

Henry Hub natural gas closed at $3.88 for a thousand cubic feet, a bargain basement price.  Natural gas has completely delinked from the oil price.  But we are hooked on the more expensive, dirtier fuel. 

CNG for vehicles is available for $1.40 per gallon equivalent, while gasoline prices reach $3.19 on average nationally and are going higher.  In California gasoline will soon be $4. At that point, the savings could be $2.60 per gallon equivalent.

These comparative prices and the fact that only 120,000 vehicles in the USA run on natural gas demonstrate total market failure that must be fixed by a Pennsylvania and national policy to substitute gas, electricity and biodiesel for oil.

Looking at prices one year ago for these key energy prices is equally startling

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