The case for Natural Gas
Have you ever stopped to wonder how much you are paying for energy, not per liter, not per kilowatt hour,but in MBTU (Million British Thermal Unit). By converting the price of gasoline, electricity and natural gas into $/Million British Thermal UnitI've discovered some interesting statistics which have interesting investment themes. Using some simple high school mathematics I've calculated the cost of different types of energy forms. If you are a Canadian living in Ontario you pay the following prices for retail electricity, natural gas and gasoline:
36.50 $/MBTU Electricity Retail Price
34.56 $/MBTU Regular Unleaded Gasoline Retail
15.22 $/MBTU Natural Gas Retail
Which leaves us with the astonishing discovery that: Natural Gas Sells at a 56 percent discount to retail Gasoline.
36.50 $/MBTU Electricity Retail Price
34.56 $/MBTU Regular Unleaded Gasoline Retail
15.22 $/MBTU Natural Gas Retail
Which leaves us with the astonishing discovery that: Natural Gas Sells at a 56 percent discount to retail Gasoline.
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