Abstract
Oil-indexed gas contracts have gradually increased gas prices in Continental Europe as crude oil prices are firming up. Continental Europe's Average German Import Price (AGIP) gas prices have held relatively firm over the recession. The rise of oil and gas prices in Europe can be slowed down only when the development of unconventional oil and gas resource starts to add regional price pressure to oppose the current short supply dynamics. US wholesale gas prices have not yet reacted to the increasing trend in oil prices. The US gas prices are expected to recover, and perhaps faster than expected, as the halving of gas rig counts begins to take effect in 2012. Price rises might occur even faster when the financial tragedy of the unconventional gas industry adopts oil-indexed gas contracts. US oil prices will rise further with the adoption of the drilling and completion techniques in use in conventional oil and gas plays.
| Original language | English |
|---|---|
| Pages | 26-33 |
| Number of pages | 8 |
| Volume | 109 |
| No | 13 |
| Specialist publication | Oil and Gas Journal |
| State | Published - 6 Jun 2011 |
| Externally published | Yes |
ASJC Scopus subject areas
- Fuel Technology
- Energy Engineering and Power Technology