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Natural gas vs. oil in U.S. transportation: Will prices confer an advantage to natural gas?

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  • Brown, Stephen P.A.

Abstract

The U.S. Energy Information Administration (EIA) projects that U.S. natural gas prices will provide a substantial cost advantage over petroleum products as a transportation fuel during the next 30+ years. Although U.S. natural gas prices closely tracked those of world oil prices from the mid-1990s to early 2009, U.S. natural gas prices have been much lower relative to those for oil since early 2009. The break owes to technological change that substantially increased the supply of U.S. shale gas resources.

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  • Brown, Stephen P.A., 2017. "Natural gas vs. oil in U.S. transportation: Will prices confer an advantage to natural gas?," Energy Policy, Elsevier, vol. 110(C), pages 210-221.
    • Handle: RePEc:eee:enepol:v:110:y:2017:i:c:p:210-221
    DOI: 10.1016/j.enpol.2017.08.018
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    U.S. natural gas prices; Interfuel substitution; Natural gas consumption; Natural gas use in transportation; U.S. policies for natural gas use;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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