World Trade of Natural gas

: SUPPLY AND DEMAND FOR NATURAL GAS (NAME (COURSE NAME (INSTITUTIONS NAME

15th OCTOBER 2008

Natural gas is believed by majority of people to be the most vital source of energy for the future . The availability of natural gas world wide together with its environmental soundness as well as its different applications across all sectors means that natural gas plays and will continue to play an important role in meeting the demand for energy globally

The following section will address some of the factors that affect the demand and supply of natural

gas , the trends likely to increase demand for natural gas in the future as well as the long term and short term factors that affect the demand and supply for natural gas will also be addressed . According to the Annual Energy Outlook 2004 , the demand for natural gas world wide is expected to increase rapidly by the year 2025 In the United States alone , demand for natural gas is expected to rise to 31 .41 Tcf by the end of 2025 (Henry 2006 . This is projected to be over 38 percent over the level of demand in 2002 . Many reasons have been attributed to the expected increase in demand for natural gas both in the short term and in the long term

Factors affecting short term demand for natural gas (a ) Cyclical demand cycle

Demand for natural gas has in the recent past been highly cyclical . This is because demand for natural gas depends on the changes from...