This report describes and analyses the development of international oil and gas pricing mechanisms. It is organised in a way that each chapter can be read on its own; the factual chapters and sections on oil, gas in North America, gas in the UK, gas in Continental Europe and liquefied natural gas are each self-contained with an executive summary and conclusions.
The main topics covered by the report are:
- Will the fast increasing trade in liquefied natural gas lead to the development of gas as a global commodity?
- Will regional differences, especially the role of long-term contracts in Continental Europe and Japan / Korea, persist?
- To what extent can the regional differences be narrowed by regulatory action, and how is any such regulatory influence shared between importing and exporting countries?
- Do geology and geography favour certain gas pricing mechanisms, like long-term contracts, thereby limiting the potential impact of regulatory action?
- What are the respective benefits of liquid commodity markets and long-term contracts and what might be an optimal mix of the two?