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The Curious Bag
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<h4 class="dechead">On One Hand: Natural Gas and Gas Are Fuels
While gas that motorists purchase at the gas station comes from oil and natural gas exists in a natural state within the Earth, customers can use both fuels in similar capacities. Both oil-based gas and natural gas help heat homes and provide electricity, and the alternative fuel website Gas2.org reports that some modern vehicles can run on natural gas.
On the Other: Natural Gas and Gas Prices Differ Significantly
In September 2009, a report in the Bulletin of Atomic Scientists noted that the price of natural gas had reached an all time low in relation to the price of oil. The report went on to explain that a strain of shale in the eastern United States may one day produce significant amounts of natural gas, increasing the distance between the prices of natural gas and oil.
Bottom Line
While natural gas and oil-based gas are significantly different and exhibited a significant price disparity in late 2009, both fuels can be used in many of the same applications. This shared purpose ties the two prices together in a complex, not linear, relationship.
Source:
Gas2: Natural Gas Cars: CNG Fuel Almost Free in Some Parts of the Country
Bulletin of Atomic Scientists: The Curious Oil and Natural Gas Price Differential
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