“Outside the United States, Canada, and the United Kingdom, almost all wholesale natural gas is sold under long-term contracts. The price of natural gas within the contracts is commonly determined by a formula that links the natural gas price to the price of crude oil or some oil-based product.” In those countries the price of natural gas is generally a lot higher than spot prices in the USA. Quote from the Congressional Research Service report.
The Congressional Research Service has a new report that addresses the international movement of natural gas. About 70% of the natural gas produced is consumed in the same country. This leaves 30% of all gas production moving via international trade. This trade occurs through pipelines and LNG shipments. The map below shows the global pattern of the international natural gas trade.
Lawrence Livermore National Laboratories has a very interesting chart that maps energy sources such as natural gas, solar and coal with energy uses such as electricity generation, residential, transportation, etc. Check it out.
A rock layer below the Marcellus Shale could prove to be another incredible source of natural gas. The Utica Shale is thicker, more geographically extensive and has already proven its ability to support commercial production.
