Abstract
An international political economy (IPE) framework provides a very solid basis on which to analyse the correlation between the evolution of the energy sectors, their effect on policies, laws and institutions. Moreover, the evolution of energy infrastructures and markets cannot be viewed in isolation from institutional developments and various practices and regulations. On this basis, this chapter analyses the natural gas markets, which have increasingly become transnational. The oil shock of 1973 provided the initial impetus for the development of natural gas. Interestingly, prior to the 1970s, gas was mainly considered as a substitute for oil.1 The two fuels have mostly competed in the heat and power sectors, while oil has remained almost irreplaceable in transport. By the end of the 20th and early 21st centuries, the importance of natural gas had increased in IPE. By the end of the 20th century, it was the fastest-growing primary energy source in many parts of the world. Therefore, some analysts forecast that it would be the fuel of the 21st century.2 The US shale gas revolution also contributes to this positive assessment of natural gas. Nowadays, gas markets increasingly constitute a separate market. The shale gas revolution has stimulated the development of the market for liquefied natural gas (LNG), and institutional changes in the gas markets have created a new context for international political and economic relations.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
P. Andrews Speed, ‘China’s Oil and Gas Industry: Stranded between the Plan and the Market’ in A. Belyi and K. Talus (Eds.), States and Markets in Hydrocarbon Sectors (London: Palgrave Macmillan, 2015), pp. 214–239.
Argus, Argus Gas Connections European Long-Term Contract Prices, report of Argus Media, 2014.
C. Bayers, Fortis Banque, Presentation at Energy Forum, Brussels, 4 June 2004.
A. Belyi, ‘Trends of Russia’s Gas Sector Regulation’, Fourth Annual Conference on Competition and Regulation of Network Industries, Brussels, 25 November 2011.
A. Belyi, ‘Institutional Trends in Russia’s Oil and Gas Sectors’, Journal of World Energy Law and Business, Vol. 6 (3), 2013, pp. 163–178.
A. Belyi and K. Talus, States and Markets in Hydrocarbon Sectors (London: Palgrave Macmillan, 2015).
S. Bhattacharyya, Energy Economics (Heidelberg: Springer 2011).
J. Bordoff and T. Houser, American Gas to the Rescue? The Impact Of US LNG Exports on European Security and Russian Foreign Policy, Working Paper for SIPA, Columbia University, available at: http://energypolicy.columbia.edu/sites/default/files/energy/CGEP_American%20Gas%20to%20the%20Rescue%3F.pdf (last accessed on 21 February 2015).
British Petroleum, World Energy Statistical Review, 2011, available at www.bp.com.
T. Carr, You Say You Want a Revolution: Shale Gas and Shale Oil in the U.S., Selected Presentation prepared for the Northeastern Agricultural & Resource Economics Association’s Post-Conference Workshop (2014 NAREA Annual Meeting, Morgantown, WV, 1–4 June 2014), available at http://www.narea.org/2014/workshop/WorkshopPresentations/CARR_NAREA_POST_CONFERENCE_2014.pdf.
C. Egenhofer and T. Legger, Security of Energy Supply: A Question for Policy or the Market? Report for Centre for European Policy Studies (Brussels: CEPS Working party reports, 2001).
R. Eising, ‘Policy Learning in Embedded Negotiations: Explaining EU Electricity Liberalisation’, International Organisation, Vol. 56 (1), 2002, pp. 85–120.
Energy Charter Secretariat, Putting a Price on Energy: International Pricing Mechanisms for Oil and Gas (Brussels, 2007), available at www.encharter.org (last accessed on 21 February 2015).
Energy Information Administration, Liquefied Natural Gas: Understanding the Basic Facts (Washington: EIA, 2013), available on URL: http://energy.gov/sites/prod/files/2013/04/f0/LNG_primerupd.pdf (last accessed on 21 February 2015).
Energy Information Administration, International Gas Markets 2014.
J. Esrada, H. Bergesen, A. Moe, and A. Sydnes (Eds.), Natural Gas in Europe (Pinter Publishers, London, 1988).
European Commission Green Paper of 29 November 2000: Towards a European strategy for the security of energy supply [COM(2000) 769 final — not published in the Official Journal].
Y. Gaidar, Gosudarstvo i Evolucia (Moscow: Evrazia, 1997).
Gazprom data and newsletters, available on URL: www.gazprom.ru (last accessed on 21 February 2015).
J.-M. Glachant, M. Hallack, and M. Vazquez, Building Competitive Gas Markets in the EU (Chelthenham: Edward Elgar, 2013).
G. Gordon, J. Patterson, and E. Usenmez, Oil and Gas Law — Current Practices and Emerging Trends (Dundee: University Press, 2011).
R. Green, ‘Electricity and Markets’ in D. Helm (Ed.) The New Energy Paradigm (Oxford: University Press, 2007), pp. 255–287.
P. Heather, ‘Continental European Hubs: Are They Fit for the Purpose?’, OIES working papers, NG 63, available at: http://www.oxfordenergy.org/wpcms/wp-content/uploads/2012/06/NG-63.pdf.
J. Henderson, ‘Domestic Gas Prices in Russia — Towards Export Netback?’ (Oxford Institute of Energy Studies, Working paper, 2011), available at: http://www.oxfordenergy.org/wpcms/wp-content/uploads/2011/11/NG_57.pdf (last accessed on 21 February 2015).
D. Helm, Energy, the State and the Market (Oxford: University Press, 2004).
International Energy Agency, various reports, available on www.iea.org (last accessed on 21 February 2015).
N. Ivanov, Slancevaia Amerika (Moscow: IEF, 2014).
Heinrich Böll Foundation, The status of coal power in Germany’s energy transition, 2014, available at: http://us.boell.org/2014/06/06/german-coal-conundrum (last accessed on 21 February 2015).
H.-M. Koopman and R. Vanhaesendonck, ‘Standard Agreements in European Energy Trade’ in M. Roggenkamp, I. Del Guayo, A. Ronne, and C. Redgwell (Eds.), Energy Law in Europe (Oxford: University Press 2007).
A. Konoplyanik, Evolution of Gas Pricing in Continental Europe, Presentation at the Centre for Energy, Petroleum, Mineral Law and Policy, 2010. available on URL: http://www.konoplyanik.ru/ru/publications/articles/465_Evolution_of_Gas_Pricing_in_Continental_Europe.pdf (last accessed on 21 February 2015).
C. Kuzemko, The Energy Security-Climate Nexus: Institutional Change in the UK and Beyond (London: Palgrave Macmillan, 2013).
R. Leal Arcas, A. Filis, and E. Abu Gsh, International Energy Governance (Chelthenham: Edward Elgar, 2014).
T. Mitrova, ‘The Political and Economic Importance of Gas in Russia’ in J. Henderson and S. Pirani (Eds.), The Russian Gas Matrix: How Markets Are Driving Change (Oxford: University Press, 2014), pp. 6–38.
K. Miyazaki and M. Limam, ‘Will LNG Exports from North America/East Africa Drive Global Price Integration?’ Conference Working Paper at LNG-17, Houston 2013, available at http://www.lng17.org/conference/program-overview/conference-sessions/.
B.J. Nash, ‘The Once and Future Fuel’, Region Focus, 2012, pp. 27–30, available at: http://www.richmondfed.org/publications/research/region_focus/2012/q2–3/pdf/feature4.pdf (last accessed on 21 February 2015).
M. Nullmeier, ‘Baltic Gas Market Current Challenges and Opportunities’, Presentation at Baltic Energy Summit, Tallinn, 14 November 2012.
Oil Voice, Newsletters, 2014.
Platts, Reports and Newsletters, available on URL www.platts.com (last accessed on 21 February 2015).
D. Pierce and E. Gelhorn. Regulated Industries (West: Nutshell series, 1999).
R. Pittman (2007) ‘Restructuring the Russian Electricity Sector: Re-Creating California?’, Energy Policy, Vol. 35 (3), pp. 1872–1883.
T. Romanova, ‘Legal Approximation in Energy: A New Approach for the European Union and Russia’ in C. Kuzemko, A. Belyi, A. Goldthau, and M. Keating (Eds.), Dynamics of Energy Governance in Europe and Russia (London: Palgrave Macmillan, 2012), pp. 23–44.
G.R. Steele, The Economics of Friedrich Hayek (London: Palgrave Macmillan, 1993).
Comment for Oxford Institute for Energy Studies, February 2007 available at: https://www.oxfordenergy.org/2007/02/gas-opec-a-distraction-from-important-issues-of-russian-gas-supply-to-europe/ (last accessed on 15 February 2015).
J. Stern and H. Rogers, The Transition to Hub-Based Pricing in Continental Europe, Working Paper of the Oxford Institute for Energy Studies, 2013., available on URL: http://www.oxfordenergy.org/wpcms/wp-content/uploads/2013/02/Hub-based-Pricing-in-Europe-A-Response-to-Sergei-Komlev-of-Gazprom-Export.pdf.
P. Stevens, The Shale Gas Revolution: The Hype and Reality (London: Chatham House, 2010).
D. Stickey, A Framework for Negotiating and Managing Gas Industry Contracts (Dundee: University Press, 2007).
K. Talus, Vertical Natural Gas Transportation Capacity, Upstream Commodity Contracts and EU Competition Law (The Netherlands: Kluwer Law International, 2011).
K. Talus, EU Energy Law and Policy (Oxford: University Press, 2013).
World Bank, Good Practice Note on (upstream) Natural Gas. 2012, EI Source Book, Washington: World Bank.
US Department of Energy, Argonne report (2007), Natural Gas Technology Overview, available at http://www.osti.gov/bridge (last accessed on 21 February 2015).
US International Trade Commission, Natural Gas Services: Recent Reforms in Selected Markets (US Trade Commission: Washington, 2001).
K. Yafimava, The Transit Dimension of EU Energy Security: Russian Gas Transit across Ukraine, Belarus, and Moldova (Oxford: University Press, 2012).
W. Zittel and M. Treber, Analysis of BP Statistical Review of World Energy with respect to CO2 Emissions, Germanwatch (Bonn), Ludwig-Bölkow-Systemtechnik GmbH, Ottonbrunn, 31 August 2000.
Author information
Authors and Affiliations
Copyright information
© 2015 Andrei V. Belyi
About this chapter
Cite this chapter
Belyi, A.V. (2015). Towards Transnational Gas Markets. In: Transnational Gas Markets and Euro-Russian Energy Relations. International Political Economy Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137482983_3
Download citation
DOI: https://doi.org/10.1057/9781137482983_3
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-57946-4
Online ISBN: 978-1-137-48298-3
eBook Packages: Palgrave Intern. Relations & Development CollectionPolitical Science and International Studies (R0)