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Aggregating Energy Since 2006

Natural gas cartel

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Marketplace of American Public Media reported that natural gas producers were meeting in the Middle East to discuss the possibility of forming a cartel akin to OPEC. This is possible in the near future as liquified natural gas (LNG) becomes more of a worldwide commodity and reserves become increasingly concentrated in the Middle East. This is bad news for consumers and also bad from the standpoint of moving to alternative fuels, as cartels like OPEC can manipulate prices and give inconsistent price signals to the market.

The US needs to consider setting a price floor on oil and also natural gas in the future, as Thomas Friedman and others have called for.