Publications: Notes at the Margin

Oil to Natural Gas Parity, IMO and Irrelevant Academics (May 13, 2019)


This Notes at the Margin begins with a question we have not heard asked before: Must oil prices move to parity with natural gas at the wellhead? The query reverses the assumption that natural gas prices must inevitably move to oil prices, an assumption that has dominated oil industry thinking for decades, an assumption on which liquified natural gas prices in countries were based until recently. Here we ask everyone if the relationship has reversed. Is it possible that oil prices will be pulled down to the natural gas price? We raise the issue because developments in oil markets should trouble every executive, every policymaker, and indeed every participant, including investors.


To receive the full report along with futures issues of Notes at the Margin and/or The Petroleum Economics Monthly, please Contact Us or send us an Information Request for subscription information.