ABSTRACT
The similarity of oil and natural gas in terms of geology, geographical location, and chemistry, these two fuels have little similarity in their commercial roles and future prospects. Approximately one-third of the world's natural gas reserves are located in Organization of the Petroleum Exporting Countries (OPEC) countries. The Algerian battle to get the United States to accept its oil/gas parity prices was unsuccessful, although its ramifications led to some increase in price and also led people to take a new look at natural gas prices. The preceding analysis elicits two major conclusions. First, although gas-injection prospects for OPEC nations are good, there is not likely to be a large-scale expansion of gas utilization through injection. Second, despite great advances in raising natural gas prices, the economics of gas exporting is not attractive enough to cause a massive surge in gas exports from the gas-rich Gulf States.
