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  • Editorial comment


    Perry A. Fischer, Editor

    I’m tired of trying to make sense of oil data. After writing the OPEC report (page 101) as a result of a recent trip, where more oil data was presented and gathered for analysis by this Editor, I thought I’d try something easier and look at natural gas data. As goofy as gas data is, even with all the court cases and the charges of price manipulation going on, relative to oil, it makes perfectly good sense. T. Boone Pickens said recently that the historic 6-to-1 price ratio of oil to gas would have to be reestablished within the next year or so. This is based on the fact that, ordinarily, on an energy basis, it takes six times as much gas as it does oil to provide heat for an industrial process. Thus, the 4% or so of companies that are able to switch fuels will do so if there’s a sufficient economic advantage.

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