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A North American Gas Trade Model (GTM)

Mark A. Beltramo, Alan S. Manne, and John P. Weyant

Year: 1986
Volume: Volume 7
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol7-No3-2
View Abstract

Natural gas ranks second only to crude oil as a primary source of energy in North America, During recent years, gas has satisfied 25 percent of all energy requirements in the United States. Most of this gas has been produced domestically, but 5 to 10 percent has been supplied by pipeline imports from Canada and Mexico. Additional amounts could be provided by pipelines from Alaska or by LNG (liquefied natural gas) imports from overseas, but these facilities would be expensive, and their construction continues to be delayed. Transport costs are high, and geography plays a far more important role in international gas markets than in the oil markets. For this reason, we view the North American continent as a largely self-contained system.

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