Abstract
Although natural gas constitutes 42% of the energy content of world hydrocarbon resources, it accounts for only about 8% of total international oil and gas trade. Gas-trade projects are costly and require large scale “anchors” at each end: a substantial market in the importing region and a significant gas reserve in the exporting country. Due to the small size of many gas deposits, and for other reasons, many of the world's gas reserves are not well-suited as a basis for international trade. They will be used increasingly to support local economic development or will remain in the ground until markets emerge. Gas reserves may be classified according to their degree of accessibility to local and international markets. Countries facing gas-development decisions must consider such questions as how best to encourage gas exploration, what volume of gas to set aside for future domestic consumption and, if reserves are sufficient to justify an export project, how to determine the value of gas in the markets of importing countries.
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