Monday, April 2, 2012

The Oil-Gas Price Ratio Sets New Records But Pickens Plan Remains Blocked In Congress

On Friday, March 30th, the price ratio of oil to gas hit nearly 53 to 1, after setting a new record of 48.6 to 1 on March 27th.  Friday saw gas fall to $1.95 at the Henry Hub, and oil traded at $103.

In North America, the days of the price of oil being being closely linked to the price of gas, with oil trading at about 11 times the price of gas, have been ended by the shale gas boom.

Though natural gas is almost too cheap to meter, the Natural Gas Act (Pickens Plan) remains blocked in the House of Representatives and Senate, where 51 Senators support it, but 60 votes are needed to end a filibuster against the bill.  As a result, today will be one more day when America fuels up with expensive and dirtier oil.

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