[RockyTx]

on a
cost per unit of energy basis,
crude oil costs 5 or 10 times as much as NG.

there has to be a hitch somewhere.
perhaps someone here knows.

[thackney]

there has to be a hitch somewhere

That would be the cost of converting to a liquid.

[thackney]

Despite the ample supplies of natural gas in the area, the company has taken the decision that GTL is not a viable option for Shell in North America, at this time, due to the likely development cost of such a project, uncertainties on long-term oil and gas prices and differentials, and Shell’s strict capital discipline.

http://www.freerepublic.com/focus/f-news/3102553/posts
05 Dec 2013

[Paladin2]

"crude oil costs 5 or 10 times as much as NG."

Hence LNG ships I guess.

[thackney]

crude oil costs 5 or 10 times as much as NG.

Closer to 3~3.5 times as much. Then you have to guess how much Natural Gas is going to rise while it becomes used by more and more transportation demands.

Energy Price Spread: Natural Gas vs. Crude Oil in the US
http://www.cmegroup.com/education/files/energy-price-spread-natural-gas-vs-crude-oil-in-the-us.pdf