Analysis of Natural Gas Market in Australia

Running head: ECONOMICS FOR BUSINESS
Economics for business
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1ECONOMICS FOR BUSINESS
Executive Summary:
The price of natural gas in Australia has increased due to shortage of supply. However, this
country has produced huge amount of natural gas to meet the domestic demand. Hence, this
report has intended to analyse the reason behind this excess demand and consequently huge
price within the domestic market, based on some newspapers.

2ECONOMICS FOR BUSINESS
Table of Contents
Introduction:...............................................................................................................................3
Newspaper analysis:...................................................................................................................3
Economic concept:.....................................................................................................................4
Recommendations:.....................................................................................................................7
Conclusion:................................................................................................................................8
References:.................................................................................................................................9

3ECONOMICS FOR BUSINESS
Introduction:
At present, natural gas reserves of Australia are measured as 3921 billion cubic meters
(bcm), among which 20% are used for commercial purpose. The largest gas basins of this
country are Browse and the Carnarvon basins, which are situated at the western part. During
2014-2015, Australia has produced 66-bcm natural gas among which, Queensland and
Western Australia have produced around 80% gas. (Merien-Paul, Enshaei and Jayasinghe
2017) Thus, based on some recent newspapers, this report has intended to analyse the demand
and supply of this natural resource after which, some recommendations are also provided to
develop this sector further. Australian policymakers along with the producers and exporters
of natural gas can shoe their interest on this report.
Newspaper analysis:
Based on the Guardian, it can be stated that gas prices have increased sharply in the
domestic market, due to lack of supply in the east coast region of Australia. The country has
possessed huge amount of natural gas while this amount is sufficient to meet the domestic
demand (Slezak 2018). However, due to some economical activities, prices of this concerned
natural resource have increased significantly. For instance, exporter has exported maximum
amount of natural gas in foreign markets with cheaper prices and this in turn has led the price
of this concerned resource to decrease further. On the other side, the Narrabri coal seam gas
project has also remained unable to reduce the prices of Australian gas.