There is no use denying the fact that nowadays, natural gas is one of the main sources of energy in the world. With this in mind, it is possible to say that this transformation led to an increase in the importance of this source. Incoherent society, natural gas influences the world policy greatly as economies of a great number of states depend on its manufacture and consumption. Moreover, oscillations of the price of natural gas lead to significant changes in the market and can result in the appearance of the world financial crisis (“One Year Natural Gas Prices and Price Charts” para. 4). Resting on these facts, it is possible to analyze the oscillations of the price of natural gas and their influence on the market.
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First of all, it is possible to say that nowadays, the price of natural gas is comparatively low. According to the latest statistics, natural gas costs $2.54 on Tuesday, October 13 (“Naturalgas Price Live” para. 1). This fact shows that nowadays, the tendency towards low prices could be observed. That is why the situation on the market is rather tensed, though stable. States, which depend on the sale of this source, obviously feel the budget shortfall as it was created in terms of high prices on gas. Russian Federation is one of the countries of this sort, and it now tries to reconsider its economy and budget.
Yet, it is possible to compare current low prices with the prices of gas in the middle and second half of the 20th century. Analyzing the data connected with the prices on natural gas, it is possible to admit that nowadays, it is even cheaper than it was “during 72% of the years since 1919” (Perry para. 3). In 2009 the average price was $ 5,64 per million British thermal units. However, under modern conditions, such a low price has a greater influence on the market because the world is more dependent on the prices of natural gas. There were no signs of stagnation and financial crisis in 1973 while nowadays researchers predict serious aftermath in case the prices become even lower.
Additionally, it is possible to say that “an all-time high of 15.39” (“Natural gas 1990-2015” para. 1) was reached in December 2005. It was characterized by significant changes in the market as leading gas producers were able to dictate their rules and obtain great benefits, promoting the development of the economy and pumping up the budget.
The lowest price was achieved in January 1992 and consisted of $1,02 per million British thermal units (“Natural Gas Prices” para. 5). This fact led to the collapse of the economy of a great number of states, and Russian Federation even suffered from the market crash as money obtained from the sales of natural gas was the main way to pump up the budget.
The following table shows oscillations of the price of natural gas.
|Year||Price ($ per million British |
Natural gas 1990-2015. n.d. Web.
Natural Gas Prices. n.d. Web.
Naturalgas Price Live. 2015. Web.
Natural Gas Weekly Update. 2015. Web.
One Year Natural Gas Prices and Price Charts. 2015. Web.
Perry, Mark. Gas is Cheaper Today Than the 1920s, 1930s, 1940s, 1950s, 1960s, 1970s and First Half of 1980s. 2009. Web.