Economics of Natural Gas

Natural gas resembles oil in fulfilling a wide variety of uses as both a source of energy and a feedstock, but the proportion of world production that is traded internationally is very much lower, and insufficient for a "world price" of gas to be established. This book addresses the issues of how the "economic price" of gas is determined. These are illustrated with estimates of the costs of exploration and production of gas, and of the benefits to be derived from its use in various economic sectors for a number of Third World countries. The book also presents a detailed case-study of the development of gas pricing in Bangladesh, and an analytical framework for the development of a formal "gas planning model" that could be applied to the cases of actual countries contemplating the development of gas use in the future.