GPPi fellow co-authors article about globalizing gas markets for Forbes magazine

GPPi Fellow Andreas Goldthau has co-authored an article about globalizing gas markets in Forbes magazine. Published 5 August 2012, the article is titled Why American Natural Gas Can Make Or Break A New Gas World. Written by Goldthau and Matthew Hulbert, lead analyst at the magazine European Energy Review, the article was put together for the regular Forbes column called ​“Old-School Energy, New World Order.”

In the piece, Goldthau and Hulbert argue that a serious downturn in international demand due to the global economic crisis, coupled with a massive surge in unconventional supply in the United States, has created a perfect storm for gas markets. As a result, markets have become oversupplied, and this has caused spot market trades to become a significant part of global gas arrangements. Now, the logic for international gas price parity has been set in motion across diverse geographic locations. But for this trend to fully use its momentum, America is the make or break nation. If the US ends up exporting liquefied natural gas, gas pricing will shift from oil fundamentals to actual gas fundamentals in the next 10 years. Yet, in this case, another issue may be looming. While losing out in the short term, producer states could end up being the ultimate winners in a globalized gas world, as they are handed an opportunity to eventually cartelize an emerging global gas market.