Natural gas and oil price relationship

An interesting piece of information on the relationship between oil and natural gas prices was published in this CNBC article on July 17: http://www.cnbc.com/id/31965616.

Extracts:

"Supply and demand are the most important factors in determining the price of anything, but Dan Niles, Co-Chief Investment Officer at Alpha One Capital Partners, is closely watching another way to view oil prices, and that is their relationship to natural gas. Oil has historically traded at 8x to 10x the price of natural gas. One of the reasons it usually stays within that range is the law of physics: On a thermal basis, it takes roughly six times the amount of oil to generate the same amount of heat as natural gas. Looking at today's prices, however, oil is going for a hefty 17x the price of natural gas, far outside the historical norm.What does this mean? Either oil is overvalued right now, or natural gas is incredibly cheap. Dan told me he believes that oil will get crushed or natural gas will go up a lot over the next year “because the laws of physics do not change.”