November 3, 2014

Can Gas Compete with Oil in The African Context?

This price gap between crude oil and natural gas creates important considerations for the private and public oil and gas industry across Africa
Global usage patterns for natural gas and crude oil are shifting. The hydrocarbons supply boom in North America in recent years has fueled a new relationship between natural gas and crude oil, every$1 of natural gas can now fetch close to 250,000 units of energy at a rate of $5 per million British Thermal Units (BTU). On the other hand, every dollar of West Texas Intermediate (WTI) crude would only generate under 100,000 units of energy, assuming WTI spot rates are around $96/barrel. The energy content price gap between both commodities is stark.

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