What is Global Gas Demand?
Updated: Nov 3, 2021
By: Maya Ardon
"During periods of strong economic growth, natural gas consumption may tend to increase"
The global gas demand can be explained by the basics of supply and demand in economics. When natural gas supply increases, lower prices tend to ensue; when supply decreases, price tends to increase. As a result, high prices promote production and moderate demand, while lower prices will increase demand among reduced production. Economic growth and strength can affect the prices and demands of natural gas. For example, during periods of strong economic growth, natural gas consumption may tend to increase due to the increase in demand for goods and services (US Energy Information Administration).
Natural Gas Explained: Factors affecting natural gas prices. U.S. Energy Information Administration (EIA). (n.d.). Retrieved November 2, 2021, from https://www.eia.gov/energyexplained/natural-gas/factors-affecting-natural-gas-prices.php.