There is a clear relationship between stability in the global energy market, especially the gas market, and the growth achieved by the world economy, countries and regions. This relationship is direct and has a strong impact. It is direct because whenever the energy market conditions stabilize, this contributes to the growth of profitability rates for existing productive activities, and the expected economic feasibility of new investments increases, so that the result is a steady rise in global economic growth.
Also, this relationship has a strong impact, because energy costs constitute a controlling share in the structure of investment, operating and production expenditures in all economies of the world. And since natural gas is the backbone of many major productive sectors, such as transportation, electricity, heating, and industry, the stability in its global market is directly reflected in the performance and development of these sectors, with global effects not only economic, but political, environmental and military as well. As a result, identifying the determinants of stability in the global gas market is now gaining great importance, especially with the tireless attempts of global recovery from the effects of the Corona pandemic and its consequences. The starting point for knowing the determinants of stability in the global gas market is to examine and analyze the economic determinants of the supply and demand sides of this market.
When the proven reserves of gas increase through the expansion of exploration activities, and as soon as productivity indicators rise through the development of production technology, the supply stabilizes in the global market, and the risks of global gas supply chains decline. In addition to the determinants of supply, gas consumption activities play a key role in influencing the demand side, as consumption and storage technology, government policies and the adequacy of new energy sources all combine to be the most important determinants of demand in the global gas market.
In addition, economic geography, geopolitical factors, and the map of gas pipelines are major determinants of influencing the global gas market in its current form. Of course, the continuous interaction between the previous determinants of the gas market does not affect the global price of gas alone, up and down, but can explain an important aspect of economic conflicts and disputes at the regional and international levels.
While the upward volatility in the price of natural gas in its main consumer markets in the last three years is attributed to a specific change in one or more of those determinants, the intensification of “Russian-European” economic disputes on the one hand, and “European-American” differences on the other hand, or even competition The strong intensity in the Eastern Mediterranean region – all due to the large European gas consumption market, and the geographical proximity of Russian and East Mediterranean gas to this market.
This also indicates that the global gas market is on a date with very rapid developments in the foreseeable future. Possible developments in the global gas market confirm that concerted global efforts to positively influence the determinants of this market, is an essential guarantee for a stable global gas market that enhances global development trends.
The importance of strengthening the stability of the global gas market
Trends Center for Research and Consultation
Trends for Research and Consultations * The global gas market is on a date with very rapid developments in the foreseeable future
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source https://pledgetimes.com/the-importance-of-strengthening-the-stability-of-the-global-gas-market/
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