Holy Cow! Gas Is Getting Incredibly Cheap

Gas is at multi-year lows.

Oh, just to be clear, we’re talking about natural gas.

chart

On a per million BTU basis it’s very close to its multi-decade lows.

The unfortunate part, from an economy perspective, is that despite our massive thirst for energy, we’ve got more natural gas than we know what to do with, as we don’t have the infrastructure to use it for a lot of stuff.

We use it to heat our homes, but given the warm winter, nobody really cares about that.

Meanwhile the ratio of oil to gas is just off the charts these days.

Here’s WTI crude/natural gas.

chart

Photo: FRED

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.