Examing the Key Differences Between Natural Gas Markets in Three Distinct Regions: North America, Europe and Asia

1876 Words Jan 24th, 2013 8 Pages
Zack Tatum


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
Asia – Sources of Supply Page 3
Asia – Dependence on Imports Page 4
Europe – Market Maturity Page 4
Europe – Sources of Supply Page 4
Europe – Dependence on Imports Page 4
North America – Market Maturity Page 5
North America – Sources of Supply Page 5
North America – Dependence on Imports Page 5

References Page 7

Introduction
As with many other products and commodities participating in a globalized supply chain, the three dominant market places are located in North America, Europe
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(Mitchell, 2012) While France has been determined to contain a remarkable 180TCF of shale gas, Europe may never see the benefit as France has invested in nuclear to eliminate the need for hydrocarbon exploration, and holds a moratorium on same. Poland is the other European country with significant shale gas; they intend to monetize their resources expeditiously. (McRae and Ruppel, 2011)
Europe – Dependence on Imports
While dependency rates between EU nations varies, the EU imported 54.1% of its gross energy consumption in 2010 (European Commission, 2012), indicating great dependence on seller nations (primarily Russia, Nigeria, Algeria, Qatar and Norway). The EU receives almost 50% of its gas by pipeline, and LNG continues to support the Iberian Peninsula. Diversification of supply is a high priority. (McRae and Ruppel, 2011) One major step to liberalizing markets would be to establish pricing mechanisms not tied to oil.

While potential exists for shale gas development to reduce European imports, stringent EU environmental regulations ensure Europe’s dependence on imports for years ahead. Lengthy disruptions are unlikely as…

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