Simon Michaux | How the World REALLY Works! [Natural gas is turned into diesel and gasoline.] - Politics Forum.org | PoFo

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In an older era of time, there were several big cities in that converted oil into natural gas. (A gasworks came into operation in New York City in 1823, and you can also see the ruins of a gasworks in Seattle)
Because in older times it was easier to create natural gas closer to a city and pipe it the homes and businesses that needed it, because transportation of natural gas over larger distances was too difficult.
So that's sort of the opposite of what's happening now in the future.

Converting natural gas to diesel and gasoline is not really too difficult. Heavier oil, which has less commercial value, is heated together with natural gas, as part of what's known in the industry as a "cracking" process. (This is done with no air, obviously)
The natural gas is more hydrogen-rich and the heavy oil is more carbon-rich, so cracked together they start forming a range of oil products with a more optimal ratio, in the middle.

This type of cracking consumes more energy and is a little less efficient than the normal cracking process used to generate fuel for cars. It might only be maybe 80% efficient, compared to the 95% efficiency of more common cracking for gasoline. Which of course means some of the natural gas will be wasted, and more CO2 emissions into the atmosphere.

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