OIES Podcast - What drives international gas prices in competitive markets

Podcasts - Oxford Institute for Energy Studies

In this latest OIES podcast, brought to you by the Gas Programme, James Henderson talks to Mike Fulwood about his latest paper on global gas prices. The podcast starts with a brief discussion about the history of gas pricing and the globalisation of the gas market, highlighting the vital role played by LNG in joining up what was previously a series of regional markets. The podcast then examines four common fallacies associated with gas prices recently – the cost stack fallacy, the marginal price fallacy, the Europe hooked on Russian gas fallacy and finally the fallacy that the TTF market was broken in 2022 because of the record price spike. In addressing these fallacies Mike outlines his multi-dimensional framework for analysing the value of gas and relates it both to the recent history of gas prices but also to the outlook for the next few years.