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Microeconomics Case Study

Case Title:

Natural Gas: The Fuel of the New Century?

Publication Year : 2005

Authors: Prashant Kulkarni, Jayasimha K.R

Industry: Oil and Natural Gas


Case Code: MBM0014B

Teaching Note: Not Available

Structured Assignment: Not Available

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The increase in prices of oil had set off a debate among the policy makers, industry analysts and observers over the need to look for alternative sources of energy. Rapid industrialisation around the world had led to an energy driven economy. A stage has reached where one cannot imagine life without oil. In this context replacement of oil is even more difficult. Most experts feel that natural gas could be the next big thing. This case tries to examine whether natural gas could play the role the oil played in the twentieth century. The case looks at the demand and supply aspects of gas, seeks to understand the dynamics and geopolitics of natural gas, and examines the environmental impact of gas and the pricing related issues.

Pedagogical Objectives:

  • Role of Energy in the World Economy.
  • Need for alternatives to oil.
  • Role of natural gas as an alternative energy source.
  • Likelihood of natural gas emerging as an alternative energy source.
  • Supply and demand patterns of natural gas.
  • Issues relating to pricing of natural gas.
  • Environmental issues related to the various energy sources
  • Geopolitics of gas.

Keywords : Microeconomics Case Study, Oil vs. Gas, Alternative Fuels, Environmental Issues, Economics of Natural Gas, LNG (Liquefied Natural Gas), CNG (Compressed, Natural Gas), Geopolitics of Gas, Russia and Gas, Middle Eastern Oil & Gas, OPEC, Natural Gas demand & supply, Natural Gas & security issues, Energy policy, Energy security

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