Freeman Spogli Institute for International Studies Program on Energy and Sustainable Development Stanford University


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Political and Economic Influences on the Future World Market for Natural Gas

Working Paper

Authors
Kenneth B. Medlock
Peter Hartley

Issued
March 2005


This working paper first develops a Reference Case that allows required rates of return on investments in energy infrastructure to vary geographically. Those rates of return reflect an assessment of the risks associated with energy business investments in various countries. By comparison, the Base Case, which was presented in the working paper, The Baker Institute World Gas Trade Model, assumes the required rates of return on investments match those sought on similar projects in the United States. The working paper then contrasts selected scenarios with the Reference Case. The selected scenarios are meant to reflect a range of political actions and economic outcomes that could affect the world market for natural gas. The political scenarios selected for study were suggested by the kinds of events discussed in the historical case studies.