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Global Natural Gas Market Integration in the Face of Shocks

Global Natural Gas Market Integration in the Face of Shocks
Author: Markos Farag
Publisher:
Total Pages: 0
Release: 2023
Genre:
ISBN:

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This paper analyzes the integration of the American, European, and Asian natural gas markets over the period 2016-2022, with a focus on how the demand shock caused by the COVID-19 pandemic and the supply shock caused by geopolitical tensions in the European market affected this integration. We also examine which regional market is leading in reflecting new information and shocks into the market price. Our analysis indicates that the market integration process has been impacted by external shocks, leading to a decrease in the degree of integration between the European and Asian markets. Additionally, we find that the American market is no longer integrated with the other two markets after the supply shock, potentially due to the US's congested and fully utilized LNG infrastructure. Our analysis also shows that the gas price differentials adjust asymmetrically in response to disturbances, suggesting that markets respond differently to positive and negative shocks. Moreover, we show that the lead/lag relationship changes over time and exhibits a dynamic behavior. Finally, we discuss the fundamental changes in the global gas market that align with our empirical results.


How Does the U.S. Natural Gas Market React to Demand and Supply Shocks in the Crude Oil Market?

How Does the U.S. Natural Gas Market React to Demand and Supply Shocks in the Crude Oil Market?
Author: Ali Jadidzadeh
Publisher:
Total Pages: 24
Release: 2017
Genre:
ISBN:

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In this paper we use monthly data (over the period from January 1976 to December 2012) and a structural VAR model to disentangle demand and supply shocks in the global crude oil market and investigate their effects on the real price of natural gas in the United States. We identify the model by assuming that innovations to the real price of crude oil are predetermined with respect to the natural gas market and show that close to 45% of the variation in the real price of natural gas can be attributed to structural supply and demand shocks in the global crude oil market.


Persistence of Shocks in the US Natural Gas Market

Persistence of Shocks in the US Natural Gas Market
Author: Hamed Ghoddusi
Publisher:
Total Pages: 0
Release: 2015
Genre:
ISBN:

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This paper tests the integration property of US natural gas consumption at the sector level and finds a heterogenous behavior. Residential, commercial, and power consumption are stationary. However, even after allowing for endogenous structural breaks, tests fail to reject unit-root in the industrial consumption of natural gas. The results highlight the value of conducting sector-level analysis of unit-root behavior in energy consumption.


Gas Market Integration

Gas Market Integration
Author: Yanrui Wu
Publisher:
Total Pages: 28
Release: 2011
Genre: Gas industry
ISBN:

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East Asia is already the main destination of the world's commercial liquefied natural gas (LNG). However, the gas markets in the EAS area are either underdeveloped or fragmented. The objectives of this study are twofold, namely, i) to present a review of the trends in global gas market integration and ii) to draw implications and make recommendations for gas market development in the EAS area. To achieve the goal of an integrated gas market in the EAS region, governments in member economies must work together to implement a plan. Specifically, four recommendations are made to the EAS states: adopt a formal program to promote and nurture the development of gas markets in member states and phased sectoral reforms in relatively mature markets; set targets to gradually harmonise regulatory and technical standards in the gas sector; coordinate better to promote their "gas" causes; and boost cross-border connectivity and trading within the area and eventually achieve regional gas market integration.


Monetizing Natural Gas in the New “New Deal” Economy

Monetizing Natural Gas in the New “New Deal” Economy
Author: Michelle Michot Foss
Publisher: Palgrave Macmillan
Total Pages: 492
Release: 2022-05-26
Genre: Business & Economics
ISBN: 9783030599850

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Natural gas markets have undergone momentous changes, worldwide. This book updates and expands on the dynamics, performance and forward path of expanding natural gas use in the US and worldwide, including international trade. It brings together major research themes and findings with recent updates and analysis of new trends and developments. It also explores many considerations for natural gas market development, such as the importance of infrastructure, transparent pricing, and institutional capacity. This book is unique in providing background on the full natural gas value chain as well as information and analysis that can foster scenario-building and decision-making. Of particular value are the lessons learned and demonstrated for those countries that aspire to build effective natural gas markets and to expand natural gas development and use.


International Market Integration for Natural Gas?

International Market Integration for Natural Gas?
Author: Guillaume L'Hégaret
Publisher:
Total Pages: 24
Release: 2003
Genre:
ISBN:

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We examine the degree of natural gas market integration in Europe, North America and Japan, between the mid 19902s and 2002. Our hypothesis is that there was a certain split of prices between Europe and North America. The relationship between the international gas marker prices and their relation to the oil price, are investigated through principal component analysis and Johansen likelihood-based procedures. Both of them show a high level of integration within the European/Japanese and North American markets and that the European/ Japanese and the North American markets are connected to a much lesser extent.


Empirical Analysis of Natural Gas Markets

Empirical Analysis of Natural Gas Markets
Author: David A Anderson
Publisher: Mdpi AG
Total Pages: 200
Release: 2020-10-02
Genre: Technology & Engineering
ISBN: 9783039431366

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Recent developments in the natural gas industry warrant new analysis of related issues. Environmental, social, and governance (ESG) investments have accelerated the shift away from coal as the dominant source of electricity. Its low environmental impact, reduced volume, and broad availability make liquefied natural gas (LNG) a popular alternative, during this time of transition between traditional fuels and newer options. In the United States, the shale gas revolution has made natural gas a game changer. In this book, we focus on empirical analyses of the natural gas market and its growing relevance worldwide.


Monetizing Natural Gas in the New "New Deal" Economy

Monetizing Natural Gas in the New
Author: Michelle Michot Foss
Publisher:
Total Pages: 0
Release: 2021
Genre:
ISBN: 9783030599843

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Natural gas markets have undergone momentous changes, worldwide. This book updates and expands on the dynamics, performance and forward path of expanding natural gas use in the US and worldwide, including international trade. It brings together major research themes and findings with recent updates and analysis of new trends and developments. It also explores many considerations for natural gas market development, such as the importance of infrastructure, transparent pricing, and institutional capacity. This book is unique in providing background on the full natural gas value chain as well as information and analysis that can foster scenario-building and decision-making. Of particular value are the lessons learned and demonstrated for those countries that aspire to build effective natural gas markets and to expand natural gas development and use. Michelle Michot Foss is Fellow in Energy, Minerals & Materials at Rice University's Baker Institute for Public Policy-Center for Energy Studies, USA. She has contributed widely recognized research on the natural gas/LNG industries. She has nearly 40 years of experience in energy/environment research, consulting and investment banking. Her professional engagements have entailed more than 20 countries, more than 40 with capacity building. She has numerous professional recognitions and awards. She was past president of USAEE, IAEE and is a USAEE Senior Fellow. Anna Mikulska is Nonresident Fellow in Energy Studies at Rice University's Baker Institute-CES, USA. She is also a senior fellow at University of Pennsylvania's Kleinman Center for Energy Policy. Her research focuses on the geopolitics of natural gas within the EU, former Soviet Bloc and Russia. Her current interests include the potential use of natural gas as a geoeconomic tool and ways in which US LNG exports could bolster European energy security. Gürcan Gülen is an energy economist with 25 years of experience in research on oil, natural gas, and electric power value chains; related technical assistance; and customized capacity building in numerous countries. After nine years at the University of Houston and 13 years at the Bureau of Economic Geology (UT-Austin), he is now an independent consultant and continues to instruct in executive education programs. He is a USAEE Senior Fellow. .


The Future of Natural Gas

The Future of Natural Gas
Author:
Publisher:
Total Pages: 238
Release:
Genre: Energy policy
ISBN: 9789075458824

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