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Putting a Price on Energy: Oil Pricing Update

Published in 2011

Putting a Price on Energy: Oil Pricing Update

This report is a follow-up to the Secretariat's 2007 publication "Putting a Price on Energy: International Pricing Mechanisms for Oil and Gas." It provides an update of Chapter 3 on Oil Pricing. In particular, it looks at some of the key events which shaped the world economy over the past four years and which have led to a never seen before oil price peak and subsequent collapse.

This update was prepared over the course of 2010 by the Secretariat's Senior Expert Miharu Kanai under the supervision of Ralf Dickel, ECS Director for Trade and Transit.

Putting a Price on Energy: International Pricing Mechanisms for Oil and Gas

Published in 2007

Putting a Price on Energy: International Pricing Mechanisms for Oil and Gas
Цена энергии: международные механизмы формирования цен на нефть и газ

This report describes and analyses the development of international oil and gas pricing mechanisms. It is organised in a way that each chapter can be read on its own; the factual chapters and sections on oil, gas in North America, gas in the UK, gas in Continental Europe and liquefied natural gas are each self-contained with an executive summary and conclusions.

The main topics covered by the report are:

  • Will the fast increasing trade in liquefied natural gas lead to the development of gas as a global commodity?
  • Will regional differences, especially the role of long-term contracts in Continental Europe and Japan / Korea, persist?
  • To what extent can the regional differences be narrowed by regulatory action, and how is any such regulatory influence shared between importing and exporting countries?
  • Do geology and geography favour certain gas pricing mechanisms, like long-term contracts, thereby limiting the potential impact of regulatory action?
  • What are the respective benefits of liquid commodity markets and long-term contracts and what might be an optimal mix of the two?

The publication"Putting a Price on Energy: International Pricing Mechanisms for Oil and Gas" is available in English and Russian.