Natural Gas Prices

Looking at the price of natural gas and trying to find out if there is a natural floor.

The Math
Gas is measured in MMBTU which is 1 million BTU (British Thermal Units).  A gallon of oil has 140,00 BTUs.  A barrel of oil has 42 gallons or 5,880,000 BTUs.

• One cubic foot of natural gas produces about 1,030 BTU

http://askville.amazon.com/BTUs-gallon-oil/AnswerViewer.do?requestId=5286513

As of March 14, 2012, a barrel of oil is between 105 and 124.  http://www.oil-price.net/  115/5.88= 19.557 / MMBTU

The price of Natural gas is $2.29/ MMBTU.  http://www.wtrg.com/daily/gasprice.html.

Therefore from an energy perspective, natural gas is almost an order of magnitude cheaper than fuel oil.  If you are choosing a heater for your home, this number is significant.

The lifting price of natural gas is ???? http://www.time.com/time/business/article/0,8599,1918674,00.html