Vol. 33, No. 3 (Fall 2008)
Gas OPEC? Rhetoric versus Reality
Indiana University of Pennsylvania
Natural gas is abundant and less polluting than both oil and coal. Consequently, it is often called the fuel of choice. The increasing reliance on gas has raised concerns about the security of supply. These concerns have been further heightened by the founding of a gas-producers grouping called Gas Exporting Countries Forum (GECF) in 2001. This study examines the possibility of GECF evolving into a “Gas OPEC”. I analyze the fundamental differences between oil and gas markets, the major producers’ positions and the reactions by American and European consumers. I argue that GECF is unlikely to emerge as a Gas OPEC at least in the near future.