Interesting times ahead for the natural gas industry, say Baker Institute experts

EXPERT ALERT

Jeff Falk
713-348-6775
jfalk@rice.edu

Avery Franklin
713-348-6327
averyrf@rice.edu

Interesting times ahead for the natural gas industry, say Baker Institute experts

HOUSTON – (June 7, 2021) – The future of natural gas is complicated in a world where the drive for decarbonization and the need for human and economic development often collide, according to experts from Rice University’s Baker Institute for Public Policy.

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Michelle Michot Foss, a fellow in energy, minerals and materials at the Baker Institute, and Anna Mikulska, a nonresident fellow in energy studies at the institute, share their insights in a new book, “Monetizing Natural Gas in the New ‘New Deal’ Economy,” which they co-edited with energy economist Gürcan Gülen.

The book details the complexities of natural gas markets, from the abundant United States upstream supply to global downstream demand. The book’s contributors point to new political and economic alliances that natural gas markets have fostered and map out lessons learned for countries that aspire to build effective natural gas markets.

This includes, for example, the new Regional Comprehensive Economic Partnership, which consists of 15 Asian economies representing almost a third of global gross domestic product and population. These countries belong to what authors dub the “New World” of gas demand. As opposed to the “Old World,” where gas has been a fuel of choice for decades (for example, the U.S., Europe, Japan and Australia), the New World countries are still building up their markets and infrastructure. Given their rapid growth and need to bring billions out of poverty, they are also less preoccupied with climate goals.

“Climate politics creates new alliances of interests,” the authors write. “Companies of all sorts from various energy supply chain segments along with financiers are lining up to enjoy guaranteed returns, highly valued in stock markets, courtesy of government subsidies as countries position for perceived competitive advantage on sensitive materials and technologies.

“These conditions are not likely to change because of shifts in scientific views and advances,” they continue. “Rather, the flavor of climate politics in place at the end of 2020 risks implosion from fiscal strains as the world emerges from the COVID-19 pandemic, and/or because costs of climate mitigation, as transparency improves, become unbearable for most people.”

To schedule an interview with Michot Foss or Mikulska, or for more information, contact Avery Franklin, media relations specialist at Rice, at averyrf@rice.edu or 713-348-6327.

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Related materials:

Book: https://www.springer.com/us/book/9783030599829

Michot Foss bio: https://www.bakerinstitute.org/experts/michelle-michot-foss/

Mikulska bio: https://www.bakerinstitute.org/experts/anna-mikulska/

Follow Rice News and Media Relations via Twitter @RiceUNews.

This news release can be found online at news.rice.edu.

Founded in 1993, Rice University’s Baker Institute ranks as the No. 1 university-affiliated think tank in the world and the No. 1 energy think tank in the world. As a premier nonpartisan think tank, the institute conducts research on domestic and foreign policy issues with the goal of bridging the gap between the theory and practice of public policy. The institute’s strong track record of achievement reflects the work of its endowed fellows, Rice University faculty scholars and staff, coupled with its outreach to the Rice student body through fellow-taught classes — including a public policy course — and student leadership and internship programs. Learn more about the institute at www.bakerinstitute.org or on the institute’s blog, http://blog.bakerinstitute.org.