Rhein-Waal University of Applied Sciences
TradeTrade in the Natural Gas Industry
: Dr. Christian Schabbel, MBA: Elena Guseva (IBSS 2). Nr. 11396
Nowadays or centuries ago it is hard to overrate the power and the usefulness of foreign trade for every country in the world. According to Jeffry Sachs - Success of every country in the world is based on international trade. No country in the world ever managed to create healthy economy by means of isolation from the world economic system. (Sachs 1997) are three factors to answer the question "Why do countries trade ? " Economic resources-natural, human, capital goods are distributed among the countries of the world extremely uneven and countries differ substantially in their provision of economic resources. To fulfill efficient production of various goods using advanced technologies or combinations of resources. The maximum satisfaction of unlimited needs of all human beings. development of the global gas business is characterized by the expansion of the number of exporters and importers, increasing its role in meeting the energy needs of many countries, building capacity for liquefaction and degasification and expansion of transport infrastructure.core driver of economy of any country was their natural resources for centuries. Today natural gas is one of the most important and valuable energy resources. Natural gas plays progressively high role in international trade sector. In the current period the essential capacity (78%) of the obtained natural gas is used by the producing countries and only 22% of the rest is exported. The main obstacle for extending the global gas trading is the high transportation costs. The countries that have no access to the pipeline transportation systems are forced to whether totally refuse from exploitation of the gas energy or to buy more expansive liquefied gas. The high transportation costs are the critical factors in an effort to create a unified world gas market. However, the global liquid gas trade triples every year this is a significant sign that gas consumption still rising world-wide. As far as natural gas is standing in the line among the less contaminating the environment energy resources the developed countries which are mostly concerned about the environment conditions and have high environmental protection level are incredibly interested in using natural gas on their territories. In comparison with oil gas has transportation twice higher. Furthermore the costs of transportation of the pipeline gas and liquefied gas are highly dependent on the quantity. Buying larger quantity of liquefied gas importing-countries can be on a pole position. Also when considering the prospective for pipeline gas supplies should an important factor should be noted, which is the main obstacle for a number of gas-exporting countries, namely, their dependence on transit countries. This problem is particularly acute rises in regions such as Central Asia, the countries of the former Soviet Union, etc. On the one hand, most transit countries are themselves importers of natural gas and it is also their interest to maintain energy supplies. On the other hand, having a certain amount of power over the gas flows of the exporting countries, transit countries are trying to dictate their own terms. However, due to a high degree of interdependence of these countries, potential conflicts often are resolved quickly.primary factors for developing gas international trade are: increase in gas-fired power stations usage, expansion of the gas usage in household sector, the distinct decrease throughout the last decade in nuclear energy usage mostly because of the high degree of environmental pollution in emergency conditions and the further world-wide exacerbation of the ecological conditions. Natural gas can also be used as an efficient automotive fuel providing the decrease in polluting emissions for 40-60%. Biggest gas exporter-countries today are Russia, Norway, Canada, Qatar, Algeria, Netherlands, Indonesia and Malaysia. Altogether they supplied 76% of the all consumed gas. The biggest importers are Germany, Japan, Italy, France, Great Britain, Spain, South Korea and Turkey. (Hallouche 2006) were trying to systemize the world trade and to create theories trying to distinguish the reasons of emerging of the international trade and the role it plays for internal life of the country. Most of this theories can be also seen from the gas industry angle. First of all the most comprehensive theory of Heckscher-Ohlin should be considered.