Natural Gas

Financial Viability of Using Natural Gas:

The financial viability of using gas is indicated in the example below:

Assume that Natural Gas is priced at $1.50 per million Btu and Crude Oil is priced at $40 per barrel which has an energy content of 5.8 million Btu.

Hence crude oil costs $6.90 per million Btu.

Therefore on a pure energy basis oil costs more that 4.5 times as much as natural gas.

Source of heat content information:

http://www.engineeringtoolbox.com/energy-content-d_868.html

Additional Information Supporting the Choice to Use Natural Gas:

Environmental Reasons:

Natural gas is not only financially viable it is also a good choice environmentally. Emissions per unit of energy are typically significantly less for natural gas then for oil products. Additionally, due to a lack of demand, a great deal of natural gas is currently simply vented or flared. That's right, because of a lack of demand this valuable fuel is often simply disposed of and wasted......according to the GE publication available below enough energy is wasted in this manner to supply a large portion of European energy requirements or most of Africa's!!!. Most disturbing vented natural gas has a greater effect on global warming that combusted natural gas. So how can you help the environment? One way is to use natural gas instead of oil and also help to create a market that ensures less is wasted.

Energy Independence:

Many countries including the USA depend heavily on imported oil. Although they have significant in-country natural gas supplies the choice of natural gas, particularly for vehicles, has not been made. Policy and historical financial viability are to blame along with lack of public buy in. However given the need to achieve energy independence and considering the financial and environmental benefits there has unlikely been a better time to adopt broader use of natural gas, particularly for vehicles. The point is made by well known Texas oilman T. Boone Pickens in the CNN video available below.