Topic > Essay on Natural Gas - 1195

IntroductionEnergy plays an important role in the economy of every country. Natural gas is the cheapest fuel, relatively cleaner, with lower density than other fuels, easier to transport and versatile in nature, making it more attractive to consumers. In the future the natural gas market will dominate the world economy and politics. According to world energy statistics, the current gas reserves in the world are …….. The discoveries of natural gas in specific areas of the world, with high intensity of capital, its special market structure and its growing global demand can transform this market into a "natural monopoly", a challenge for the world's energy and economic future and for social well-being. The new form of LNG (liquefied natural gas) is more attractive, challenging and variable in terms of destinations, as a result regional markets are becoming increasingly connected. Future major natural gas producers and their energy giants will be able to monopolize the gas industry in the future. The fundamental restructuring process of this market has already begun in recent decades to separate and open it to attract private investment in the energy sector. But these deregulations are more favorable for older players in the industry. Recent mergers, acquisitions and groupings of energy giants are the result of wild competition for natural gas resources and operating markets. The natural gas industry is divided into four sectors, called producers, transportation (pipelines), distribution and local marketing, and consumers. Before 1985, the industry was traditional and vertically integrated, which supported monopoly in the industry. Distribution companies were unable to choose pipelines… middle of paper… Exploration & Production and Mergers & Acquisitions by Values ​​& Operations are shown below in the chart. The above scenario clearly explains that all the above names Mergers and groupings concern major oil giants, who are struggling to reshape their business relationships internationally to gain more control and access to the natural gas sector. Despite EU rules on third-party access and legal/functional separation, new entrants often do not have effective access to networks, whose operators are alleged to favor their affiliates. The above discussion clarifies the current trend of the natural gas market (oligopoly), which predicts the future of the gas industry. Governments must promote greater liberalization of the sector as natural gas will play an important role in the future world economy. Regulations should be designated by country governments