Main Forces Driving the Market of Gas
In this assignment, I am required to write an analysis of the main forces driving the market for any specific product of my choice. For me to successfully complete this task, I have to first pick a product, one that I am interested in, discuss the long term forces driving demand and supply, discuss the position of the main substitute products and producers, look at past data and explain what has occurred to change the price and finally will the producer be profitable in the future? I have chosen Natural Gas.
Natural gas is a vital component of the world's supply of energy. It is one of the cleanest, safest, and most useful of all energy sources. Despite its importance, however, there are many misconceptions about natural gas. For instance, the word 'gas' itself has a variety of different uses, and meanings. When we fuel our car, we put 'gas' in it. However, the gasoline that goes into your vehicle, while a fossil fuel itself, is very different from natural gas. The 'gas' in the common barbecue is actually propane, which, while closely associated and commonly found in natural gas, is not really natural gas itself. While commonly grouped in with other fossil fuels and sources of energy, there are many characteristics of natural gas that make it unique.
Long-Term forces driving Supply & Demand
Demand for natural gas has traditionally been high. Demand for natural gas depends on the time of year, and changes from season to season. In the past, demand for natural gas has been relatively straightforward: demand was highest during the coldest months of winter and lowest during the warmest months of summer. The main driver for this natural gas demand is the need for residential and commercial heating. This has resulted in demand for natural gas spiking in January and February, and dipping during the months of July and August.
While requirements for natural gas heating decrease during the summer months, demand for space cooling increases during this warmer
Natural gas is a vital component of the world's supply of energy. It is one of the cleanest, safest, and most useful of all energy sources. Despite its importance, however, there are many misconceptions about natural gas. For instance, the word 'gas' itself has a variety of different uses, and meanings. When we fuel our car, we put 'gas' in it. However, the gasoline that goes into your vehicle, while a fossil fuel itself, is very different from natural gas. The 'gas' in the common barbecue is actually propane, which, while closely associated and commonly found in natural gas, is not really natural gas itself. While commonly grouped in with other fossil fuels and sources of energy, there are many characteristics of natural gas that make it unique.
Long-Term forces driving Supply & Demand
Demand for natural gas has traditionally been high. Demand for natural gas depends on the time of year, and changes from season to season. In the past, demand for natural gas has been relatively straightforward: demand was highest during the coldest months of winter and lowest during the warmest months of summer. The main driver for this natural gas demand is the need for residential and commercial heating. This has resulted in demand for natural gas spiking in January and February, and dipping during the months of July and August.
While requirements for natural gas heating decrease during the summer months, demand for space cooling increases during this warmer