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Federal Reserve Bank of San Francisco
FRBSF Economic Letter
Pricey oil, cheap natural gas, and energy costs
Galina Hale
Fernanda Nechio
Abstract

Historically, oil and natural gas prices have moved hand in hand. However, in the past few years, while oil prices climbed to near record peaks, natural gas prices fell to levels not seen since the mid-1970s as a result of new hydraulic fracturing technology. U.S. consumer energy expenditures are still mainly driven by oil prices, so household energy bills got little relief as natural gas prices fell. Moreover, even though the United States has trimmed crude oil imports, they still equal a substantial share of gross domestic product.


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Galina Hale & Fernanda Nechio, "Pricey oil, cheap natural gas, and energy costs", Federal Reserve Bank of San Francisco, FRBSF Economic Letter, number 23, 2012.
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Keywords: Natural gas ; Petroleum products - Prices
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