In the Moneylife issue dated 24 September 2009, we had written about crude oil to natural gas ratio hitting its highest level indicating that oil is vastly expensive relative to natural gas. The conclusion was that either natural gas would go up sharply or oil would fall. Since then, natural gas has shot up 62%, while oil has been weak. Natural gas prices surged mainly because gas supply was expected to be in line with demand, resulting from the brisk pullback in US drilling activity. The number of rigs drilling for natural gas in the US has decreased 56% since last year.