Natural gas doesn't contain as much energy as oil. But the two have always been priced in relationship to each other. Natural gas used to be less expensive than oil, but it now costs nearly twice as much. Although exploration for natural gas is increasing, new discoveries take time to come online. The market has also been disrupted when natural gas buyers failed to buy enough of the fuel to meet this winter's demand.
Supply is down while demand, because of an already cold winter, is up.
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