Challenges and opportunities await natural gas industry
- Anabasis-Straub, Los Angeles, CA (United States)
During the last two decades, the natural gas industry has gone through drastic changes. On one hand, deregulation and customer choice have been introduced to the industry. On the other hand, technological advances have resulted in substantial growth of available gas resources. In short, deregulation coupled with increased availability of supply has changed the way market participants interact with each other and which avenues they take to become leaders. Many new opportunities for entry into the market have also been created. As a result, the tide of competition has not only turned against the financially strong giants of the past, but it has also turned against new entrants who are fast, flexible and market driven. Natural gas utilities companies have responded by improving their operational efficiencies through process re-engineering, organizational re-alignment, restructuring and strategic alliances or mergers. Deregulation of the electricity industry is expected to increase competitive pressures on the natural gas industry, thus causing even more of a decrease in natural gas prices. In the future, natural gas utilities must be able to improve their effectiveness by accurately forecasting demand and optimizing their own supply and delivery systems in such a way that costs are minimized without compromising the reliability of supply. The new frontier of competitiveness will ensure that structural changes in the industry are characterized by an effective management of the supply-demand relationship and the optimization of risks inherently a part of gas delivery.
- OSTI ID:
- 289385
- Journal Information:
- Pipeline and Gas Journal, Vol. 225, Issue 11; Other Information: PBD: Nov 1998
- Country of Publication:
- United States
- Language:
- English
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