Why America can make or break a new global gas world
These are exciting times for international gas markets. Not only has gas demand grown at twice the pace of oil over the past decade, with the IEA forecasting further consumption growth of 50% over the next twenty (golden) years. What’s more, after decades of long term contracts linked to oil indexed prices, we’re starting to see the first serious signs of global gas prices based on actual gas fundamentals.
In fact, over the past couple of years we’ve been handed the perfect storm for global markets to take off: a serious downturn in international demand due to an unsustainable balance of debtor and creditor nations globally, coupled to a massive surge in unconventional supply in the US. As far as gas is concerned, that’s created enormous liquidity in the truest sense of the word (actual gas volumes) which propelled spot market trades to become a significant part of global gas arrangements.
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