Next Article in Journal
A Nonlinear Elastic Model for Triaxial Compressive Properties of Artificial Methane-Hydrate-Bearing Sediment Samples
Previous Article in Journal
Magnetic Decoupling Design and Experimental Validation of a Radial-Radial Flux Compound-Structure Permanent-Magnet Synchronous Machine for HEVs
Article Menu

Export Article

Open AccessArticle
Energies 2012, 5(10), 4040-4056;

Natural Gas Prices on Three Continents

Swiss Institute of Banking and Finance, University of St. Gallen, Rosenbergstrasse 52, 9000 St. Gallen, Switzerland
Department of Finance, Budapest University of Technology and Economics, Magyar tudósok krt. 2., 1117 Budapest, Hungary
Author to whom correspondence should be addressed.
Received: 17 April 2012 / Revised: 8 October 2012 / Accepted: 9 October 2012 / Published: 19 October 2012
Full-Text   |   PDF [400 KB, uploaded 17 March 2015]   |  


We investigate the pricing formation of natural gas markets on three different continents (Europe, Asia and North America). We find that natural gas markets showed a strong relationship with the crude oil market between 1992 and 2001 and natural gas prices tended to thermal parity with crude oil prices. From 2002 natural gas markets exhibited a less pronounced relationship with the crude oil market and major natural gas markets were severely underpriced compared to crude oil. A globally integrated natural gas market, comparable to the global oil market, has not evolved. The main natural gas markets, however, exhibit some level of integration, especially over a longer time. The European market exhibits the strongest levels of integration, while the North American market exhibits the weakest. View Full-Text
Keywords: natural gas; crude oil; thermal parity natural gas; crude oil; thermal parity

Figure 1

This is an open access article distributed under the Creative Commons Attribution License (CC BY 3.0).

Share & Cite This Article

MDPI and ACS Style

Erdős, P.; Ormos, M. Natural Gas Prices on Three Continents. Energies 2012, 5, 4040-4056.

Show more citation formats Show less citations formats

Related Articles

Article Metrics

Article Access Statistics



[Return to top]
Energies EISSN 1996-1073 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top