What is main factors affecting natural gas price
The formulation of natural gas is an extremely complex work, which must be based on a large number of statistical analysis and macro research. First of all, it is necessary to analyze and study the factors that affect the price changes of natural gas. The main factors affecting the price change of natural gas include the following aspects.
1. Price of alternative energy: the alternative energy of natural gas for fuel is mainly coal, which also has mutual substitution with crude oil, refined oil and coal. It should be linked with alternative energy to maintain a reasonable price relationship. Crude oil, refined oil and electricity; As an industrial raw material, in the process of studying and setting the price of natural gas, from the perspective of world energy development, when the oil price rises to a certain level, the price of natural gas will also rise to the corresponding level, and vice versa. The price relationship between natural gas and other energy resources stimulates the development of natural gas and other energy industries, and stimulates the continuous change of industrial structure in the world. At present, both natural gas industry users and some power generation users have the possibility of replacing refined oil. Therefore, when considering alternative energy, fuel oil should be taken as the first, and the specific fuel oil can be analyzed and selected.
2. Cost of natural gas exploitation: the cost of natural gas exploitation is the basis of setting the price of natural gas, which includes the upfront investment of exploration and development and the cost of production and operation. In general, the former is much higher than the latter. The investment scale of natural gas industry is large and the period is long. The production lags behind the exploration for a long time, ranging from three to five years, or more than ten years, or even longer. Therefore, whether the natural gas production enterprises can continue to invest and put into production depends on whether the gas price can recover the capital investment. Only when the gas price is higher than the total cost of exploitation, can the enterprise recover the advance investment and create benefits. Otherwise, the enterprise will stop investment, stop production and wait for the opportunity.
Natural gas plant
3. National policy and tax policy: national price and tax policy are another important factor in setting gas price. Energy is an important material basis for the development of the world economy. Energy issues have always been political and economic. With the increasing proportion of natural gas in world energy consumption year by year, countries all over the world, especially natural gas producing countries, pay more and more attention to the production, distribution and consumption of natural gas. In order to safeguard the interests of all countries, many natural gas policies have been formulated. Among them, price and tax are closely related.
4. Market supply and demand relationship: the market supply and demand relationship of natural gas is the key factor to set the gas price. As a commodity, the price of natural gas, like other industrial products, changes with the change of supply and demand. Natural gas supply is restricted by natural gas reserves and capacity scale. When new natural gas reserves are found, the production capacity can be expanded and the natural gas supply capacity can be enhanced. The level of demand is closely related to economic growth. When the world economy is relatively prosperous, the demand for natural gas will increase and the price of natural gas will rise; On the contrary, when the world economy begins to slide or stagnate, the demand for natural gas will decrease accordingly, and its price will decrease accordingly. The policy of natural gas revenue will directly affect the formulation of natural gas price.
There are many factors affecting the price of natural gas, such as the risk of gas field development, the change of world political situation and so on.