Unformatted text preview: Gas market is going through an unusual period, drop in gas demand reached a record of 3% in 2010 after the global economic downturn, along with the unexpected boom in shale gas production in the US and the surge in LNG capacity. The economics downturn has changed prices dramatically and can change the behavior of market. The break in the historical link between natural gas prices and oil contracts has left gas prices at the lower side while oil prices are recovering. Although today’s gas market is rather uncertain, in the long run gas prices will be driven by demand, and if major exporters reduce production voluntarily or due to maintenance or other problems, prices might rise. The fundamental factors such as world economic growth, LNG developments, shale gas production capacity, and carbon policies will be the determining factors....
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- Spring '11
- Economics, GAS PRICES, Oil prices, shale gas production