EXAMING THE KEY DIFFERENCES BETWEEN NATURAL GAS MARKETS IN THREE DISTINCT REGIONS:
NORTH AMERICA, EUROPE AND ASIA
TABLE OF CONTENTS
Introduction Page 3
Asia – Market Maturity Page 3 …show more content…
Lengthy disruptions are unlikely as Russia and Algeria have failed to reinvest hydrocarbon revenues for economic growth; they remain highly dependent on steady cash inflows to remain solvent. If a lengthy disruption did happen, Europe generally has powerful North American allies who may use diplomacy, sanctions or hostility to mitigate damage. In the event of conflict, North American surplus LNG export capacity may bolster gas shortfalls in Europe.
North America – Market Maturity
The United States and Canada enjoy the most developed and un-restricted natural gas market in the world. Natural gas infrastructure is highly developed and is the mechanism by which the US was able to consume 22% of the world’s natural gas in 2009. (Mitchell, 2012) Natural gas is produced by private companies with open access to the pipeline network and sold at prices set by the New York Mercantile Exchange (NYMEX) based on principles of supply and demand. Gas in North America trades at the greatest degree of independence to oil compared to other regions, indicating an exceptionally mature natural gas market.
North America - Sources of …show more content…
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