Tuesday, February 7, 2012

Quick Comparison of Liquid Natural Gas and Propane -- The Williston Basin, North Dakota, USA

http://milliondollarway.blogspot.com/2012/02/quick-comparison-of-liquid-natural-gas.html#comment-form


REDRANT: This is BENCHMARK WHOLESALE but natural gas is going for around $2.50 per CCF (one-million BTU) and heating oil is $3.17 per gallon, again BENCHMARK WHOLESALE. It takes eight gallons of fuel oil to get one-million BTU. Thus $25.36 for the fuel oil to get the one-million BTU.

At the BENCHMARK WHOLESALE level natural gas is one tenth the cost of heating oil. This is "napkin math" and as they say "your mileage may vary" but there is a remarkable 10X decoupling in the BENCHMARK WHOLESALE cost of natural gas and fuel oil.

Stranded natural gas can be had at a far lower price, especially if skid mounted processing systems can remove "wet gases" like propane and butane.

I haven't done the math but figure that the BENCHMARK WHOLESALE propoane cost is six to eight times the cost of BENCHMARK WHOLESALE natural gas.

Most of rural and small town USA are not on the natural gas pipeline systems so getting natural gas to them can save a lot of energy costs.

On Craislist, old propane powered Minneapolis Moline Tractors occasionally pop up. You could easily built a dual fuel natural gas (probably compressed) and gasoline engine tractor.  Greg Lang

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