Investors Shouldn't Gorge on Natural Gas - Wall Street Journal

Junk food appeals to our primal instincts: It is a cheap way of loading up on calories.

Right now, natural gas is the energy world's junk food. Burning a barrel of oil releases about 5.8 million British thermal units of energy. In theory, therefore, the price of oil, measured in barrels, should be roughly six times that of natural gas, which is priced per million BTUs.

Since 1994, the average has been 8.6 times. Today, with spot natural gas costing about $4 per million BTUs, it is almost 18 times.

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Full Story: Investors Shouldn't Gorge on Natural Gas - Wall Street Journal