Friday, January 28, 2011

Rigzone: 18-1 Price Spread (Oil - Natural Gas) -- Staggering -- North Dakota, USA

Look at that price spread between natural gas and oil predicted by the end of the year
U.S. energy producers are making a massive investment shift from natural-gas production to unconventional oil drilling as natural-gas prices stagnate, said Sylvia Barnes, managing director and head of banking at investment firm Madison Williams and Co.

The widening spread between oil and natural-gas prices is driving the investment shift, Barnes said. The oil-to-gas price ratio, which was traditionally 6-to-1, is expected to reach 18-to-1 by November, 2011.
Aren't we already there, 18-to-1? I must be tracking the wrong numbers; even the linked article says natural gas is stuck at $4 per million British thermal unit and oil is well past $72.

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