by Kurt Wulff (McDep Associates)
Expectations of a rise in natural gas prices following the potential formation of a natural gas OPEC, as speculated in the press from time to time, may be right for the wrong reasons. Oil price has gone up since the Organization of Petroleum Exporting Countries was formed more than 40 years ago, but less because of the organization than because of demand and supply factors as we have observed.
Natural gas globally seems deeply underpriced on a unit of energy basis without any consideration for its superior environmental characteristics. Russia, the largest natural gas producing country, sells its clean resource for a fourth of the price that Saudi Arabia, the largest oil producing country, sells its medium dirty resource. Such a gap is likely to narrow whether or not we have a natural gas producer organization.
Expectations of a rise in natural gas prices following the potential formation of a natural gas OPEC, as speculated in the press from time to time, may be right for the wrong reasons. Oil price has gone up since the Organization of Petroleum Exporting Countries was formed more than 40 years ago, but less because of the organization than because of demand and supply factors as we have observed.
Natural gas globally seems deeply underpriced on a unit of energy basis without any consideration for its superior environmental characteristics. Russia, the largest natural gas producing country, sells its clean resource for a fourth of the price that Saudi Arabia, the largest oil producing country, sells its medium dirty resource. Such a gap is likely to narrow whether or not we have a natural gas producer organization.
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