# Conventional oil and gas production and Crude oil

Energy flows from crude oil to conventional oil and gas production; conventional oil and gas production needs crude oil; their prices have moved together.

Source page: https://www.materialinsights.org/links/conventional-oil-and-gas-production-and-crude-oil/

[Conventional oil and gas production](https://www.materialinsights.org/energy/e_oil_gas_conv/) (energy) and [Crude oil](https://www.materialinsights.org/energy/crude_oil/) (energy): 3 relationships.

## How they are linked

### 1. Energy flow

*Physical flow · 87% of flow · Crude oil → Conventional oil and gas production*

Wells draw oil that flows naturally or under pumping from reservoirs.

- **87%** of Crude oil's energy goes this way

### 2. Material need

*Physical flow · Direct · Crude oil → Conventional oil and gas production*

Building or running Conventional oil and gas production needs crude oil.

### 3. Price link: product

*Cost and price · Strong · Both ways*

Producers sell crude at world prices, and the proxy is the average of Brent, Dubai and WTI. It moves almost as one with Brent, with monthly changes correlating at 0.99, so this mainly confirms the benchmarks track each other.

- **0.99** monthly change correlation
- **1.00** 12-month change correlation
- **0.98** fitted elasticity

Built from the site data on production routes, energy flows, industry value chains, input-output tables and prices.