Identification of key factors influencing natural gas prices

Abstract

Natural gas, as well as oil, are the most important commodities of today world. Without gas the economy cannot exist in many sectors. As a fossil fuel it is one of those exhaustible and non-renewable resources. It is a fact of life, that one day it will be gone, which will be seen on its price on commodities exchange. This article is aimed toward identification of key factors influencing natural gas price development, and to specify the strength of price reliance on such factors. First, natural gas sector is analyzed, strong and weak points identified and chances or dangers formulated. Than key factors are specified, divided into quantifiable and non-quantifiable ones. Quantifiable ones are subject of regression and correlation analysis, reliance verified and its strength. Slate gas is mentioned by this article, it can in the future influence significantly gas prices. Analyzing the risks factors, actual state of slate gas mining is described, and possible influence on natural gas prices.