While it's certainly possible to run automobiles on natural gas instead of gasoline (see the Civic GX), there is a decided lack of natural gas vehicles in the U.S. This might become a problem that needs solving, quick, if an analysis in Ground Report turns out to be accurate. The fear? That the price of oil will plummet from its current price of around $70-$75 to $30.
Analyst Paul Sterne suggests that because natural gas prices are low, oil prices will have to drop to match them, taking the energy content into account and all that. But we're not sold on this reasoning. You can't drive (most) cars on natural gas, and transportation will continue to demand petroleum-based gasoline for the near future, so what's the connection here? Can someone with more knowledge about this field clarify if the two prices have ever moved in tandem?
[Source: Ground Report via Green Car Advisor]
Photo by The U.S. National Archives. Licensed under Creative Commons license 2.0.
Analyst Paul Sterne suggests that because natural gas prices are low, oil prices will have to drop to match them, taking the energy content into account and all that. But we're not sold on this reasoning. You can't drive (most) cars on natural gas, and transportation will continue to demand petroleum-based gasoline for the near future, so what's the connection here? Can someone with more knowledge about this field clarify if the two prices have ever moved in tandem?
[Source: Ground Report via Green Car Advisor]
Photo by The U.S. National Archives. Licensed under Creative Commons license 2.0.
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