With reference to the extracts and your own knowledge, assess the likely XED between natural gas and oil.

The Cross Elasticity of Demand (XED) between natural gas and oil can be assessed by considering the nature of these two goods.

1. Substitutability: Natural gas and oil are both sources of energy and can be used interchangeably in many applications. Therefore, they can be considered as substitute goods. When the price of oil increases, consumers may switch to natural gas, and vice versa. This implies that the XED between natural gas and oil is likely to be positive.

2. Degree of Substitutability: However, the degree of substitutability is not perfect. For instance, some vehicles and machinery can only run on oil, not natural gas. Therefore, even if the price of oil increases, these consumers cannot switch to natural gas. This suggests that the XED between natural gas and oil is less than 1 (i.e., inelastic).

3. Market Conditions: The XED between natural gas and oil also depends on market conditions. For example, if there is a technological breakthrough that makes it easier to use natural gas in place of oil, the XED would increase. On the other hand, if there are regulatory restrictions on the use of natural gas, the XED would decrease.

4. Time Period: The XED between natural gas and oil is likely to be higher in the long run than in the short run. This is because consumers need time to adjust their consumption patterns. For example, if the price of oil increases, consumers cannot immediately switch to natural gas. They need time to install natural gas infrastructure, such as pipelines and storage facilities.

In conclusion, the XED between natural gas and oil is likely to be positive but less than 1, reflecting their status as substitute goods but with imperfect substitutability. However, the exact value of the XED would depend on various factors, including market conditions and the time period under consideration.