ABSTRACT
This chapter looks at the conventional wisdoms regarding gas development — in particular, economies of scale, base-load priorities, premium use and the perceived need for public sector regulation. It offers a single scenario of accelerated gas use through the twenty first century as a means of high lighting how these conventional wisdoms may have to change. The relationship between the gas producers and the government is often already determined largely by that build-up in the production and sale of oil. As oil security continues to play a large political role in Western Europe, the attractions of reversing the trend and moving more gas on special flexible tariffs into electricity generation to compete with coal and nuclear are very strong. The indexation of gas to fuel oil, gas oil, crude or particular product/crude mixes may increasingly be seen as a device to keep gas out of the market as long as possible.
