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The economics of natural gas development

Author

Listed:
  • Bourcier, P.
  • Julius, D.
  • Moulin, P.
  • Palmer, K.

Abstract

There is significant potential for natural gas to meet a growing share of developing countries' energy demands. The constraints to rapid gas development are not related to supply potential or cost but rather to the country-specific problem of evolving a gas-investment framework, in which producer and consumer prices play a central role, that is conducive to rapid and matched growth of gas supply and demand. The paper considers three linked questions. First, what gas-utilization patterns can be expected in developing countries and how will they differ from those in developed countries? Second, what principles should determine the price of gas for local use and how can they be applied in practice? Third, how can exploration agreements provide incentives for investors to explore in gas-prone areas? These questions are explored drawing on World Bank experience in lending for gas projects in developing countries.

Suggested Citation

  • Bourcier, P. & Julius, D. & Moulin, P. & Palmer, K., 1985. "The economics of natural gas development," Energy, Elsevier, vol. 10(2), pages 237-248.
    • Handle: RePEc:eee:energy:v:10:y:1985:i:2:p:237-248
    DOI: 10.1016/0360-5442(85)90087-8
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