April 23, 2015

Oil-Gas Prices and Prominent U.S. Figures

Oil price has been plummeting sharply over the past several months, but it is still much more higher than the gas price (around three times of it) in U.S. (Figure-1). This is an important factor of the production companies’ preference between oil and gas wells. Even though oil price/gas price ratio has decreased from 10 to 3, production companies continue to prefer oil wells instead of gas wells.

Figure-1