Price Volatility of Natural Gas Markets

In December 2010, MJB&A completed a report on natural gas price volatility.  This research report gleaned lessons from other markets to determine (1) whether increased exposure to natural gas prices, due to higher consumption, is likely to have a negative impact on the U.S. economy as compared to other regions of the world, and (2) how natural gas price volatility compares to volatility in other commodities and other natural gas-consuming regions of the world: the United States, Europe, and Asia, which account for one-third, one-fifth, and one-sixth of total global consumption. This report comes in the context of a series of reports that have been commissioned by the American Clean Skies Foundation in support of the Task Force for the National Coalition on Energy Policy (NCEP). Other reports have looked at (1) projections for future natural gas supply, (2) the history of price instability in the U.S., and (3) price hedging strategies employed by natural gas producers and electric power companies.

Click to access the report.