Horn River News (“HRN”) has covered this topic before, but there is growing discussion and speculation about the price ratio between oil and natural gas.
“The ratio of natural gas to crude oil is so out of line. Speculators can pick up one of the only commodities that is cheap after the run by crude.” Brad Florer, a trader for Kottke Associates Inc., a commodity futures broker states:
The position on the HRN is natural gas will increase its market share within the North American energy mix, as the cleanest fossil fuel and most practical resource for meeting energy needs while reducing carbon emissions. The gap price may narrow, but may also do so by oil coming off current prices. Regardless, we see the growing importance of natural gas will increase demand and consumption. Go back and read all the articles here on the Horn River News, and you will see for yourself.
Here are a couple of interesting articles on the price gap between oil and natural gas.
Bloomberg (via Financial Post): Natural gas gains on speculation price gap with crude to narrow
Financial Post (via Calgary Herald): Wolf Gilbert: The price disconnect between oil and natural gas
