[OT] Gas companies report record profits (old energy thread)

Gary Dusbabek gd at byu.edu
Mon Jan 30 11:01:32 MST 2006


On 1/30/06, Michael L Torrie <torriem at chem.byu.edu> wrote:
> On Mon, 2006-01-30 at 12:01 -0500, Grant Shipley wrote:
> > After much discussion back in August (on this list) over why gas was
> > so expensive......
> >
> > I think we have the answer now.
>
> What concerns me far more than oil prices (gasoline) are natural gas
> prices.  Natural gas production has nothing to do with oil production
> (other than the same companies are involved), yet the price of natural
> gas is always linked to it, which I have a problem with.

Natural gas and oil typically come from the same deposits.  What
designates a reserve as a gas- or oil-reserve is usually the ratio of
natural gas to oil.  So thw two are related in that way.

What makes them not related is the refinement process.  Poorer
countries rich in fossil fuel reserves (think: Africa) typically burn
off the natural gas in their reserves because they lack the separate
equipment and pipelines to get it to market.

Gary Dusbabek
National Geographic Reader since 1990



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