By Organization for Economic Cooperation & Development
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Extra resources for Natural Gas Market Review 2006: Towards a Global Gas Market
At the same time, OECD countries overall will account for 34% of global gas production, down from 44% in 2000. In North America, high gas prices are spurring intense exploration and development activities and the number of producing wells in the United States has increased by 35% over the past ﬁve years. 3%. 7% as compared to 2004, but United States’ production 4. R/P ratios here merely serve as a means to indicate that global gas reserves are abundant but that OECD countries’ gas reserves are less so.
The same straits are already intensively used for oil trade, which faces similar issues. Is gas quality a barrier to the development of the global gas industry? The quality of natural gas is deﬁned by its components. Whereas normally methane is the main component, signiﬁcant amounts of ethane, propane, nitrogen, carbon dioxide and other substances can be present. Although the composition of natural gas can change from ﬁeld to ﬁeld, gas-ﬁred appliances in general and domestic appliances in particular, are not equipped to cope with large variations in gas qualitiy.
This is an undesirable solution, since it effectively creates market barriers for new entrants. It does, however, put pressure on producers, which sometimes lack the ﬁnancial incentive to strip undesired components from their LNG. Strip undesired components. Currently the main concerns focus on gas which is rich in ethane and propane components. Not only do these components have a higher chance of carbon monoxide formation upon combustion, there is also a possibility that they exert a detrimental effect on pipeline integrity, as recent US lawsuits have shown.
Natural Gas Market Review 2006: Towards a Global Gas Market by Organization for Economic Cooperation & Development