Business news for over availability of gas in the near future

The most recent news from a business house named Booz and Company’s says that in the next four to five years the over availability of gas in the markets will come to a saturation level. The various carbon demanding fuels for example oil and coal will be replaced by gas. This is expected to happen in the latter half of the coming decade (that is after 2015). Since the carbon oriented fuels are used for power production so if they get replaced with gas then the rise in prices will be a sure occurrence in markets.

We saw the financial status of the recent market throughout the globe in the past one or two years. This resulted in reduction of gas markets demand, beyond expectation. As a result of which the gas markets in US have gone through over flow of unconventional gas supply in the country of United States. An advantage for the local consumer from this is resulted to save some dollars in their pockets since the price of expanded gas resources has been stridently lowered. A world wide examination report says this over availability of gas supply will continue to remain till the mid of the next decade.

If the lowered price list of gas in the markets in US gets transmitted to rest of the world especially to the European countries, then they might also tend to use gas as a source of power production which is generally done with the help of carbon fuels such as oil and coal. In the present day and age of this decade, the natural gas rate as per US market is assumed to be six to seven dollar MMBTU. MMBTU is the measurement unit for natural gas. It is the abbreviated form of Million Metric British Thermal Units.

The over availability in supply of this gas in the LNG market of US will affect the price levels in the European markets. The constant lessened gas price list will change the mode of energy production system. The system which now uses carbon rich fuels have to use carbon poor fuel like natural gas. And if the situation turns serious and the expected idea comes into reality then there is a big chance of equality of natural gas and coal which might not be fine for the future of coal producers.

European markets are considered as higher commodity markets but with the accelerated natural gas market’s price, the European commodity markets will become regular or common markets for natural gas supply and the price increased rate will be set according to the demand of the consumers and not the suppliers. This will help the larger mass of consumers or clients to take advantage of the present situation which is temporary instability of price and permanent price rise for future possibly. The persistence in the higher price rate will delete the requirement of the wholesalers because the consumers will come into direct contact of the producer.