馃挩 GEOPOLITICS: MAIN NATURAL GAS PRODUCING COUNTRIES 馃挩

馃挩 GEOPOLITICS: MAIN NATURAL GAS PRODUCING COUNTRIES 馃挩

After oil [ https://lnkd.in/eteJVQDx ], natural gas is the second most widely used energy source in the world. Its production can vary from year to year, depending on a number of factors, such as weather conditions and demand. Its main uses are: power production, heating and cooling, cooking, transportation and other chemical production. According to the BP Statistical Review of World Energy 2023, the top 20 main countries are:

Rank | Country | Production | billion cubic meters | % Accumulated
1 United States 920.0 24% 24%
2 Russia 710.0 19% 43%
3 Iran 260.0 7% 49%
4 Qatar 240.0 6% 56%
5 Saudi Arabia 200.0 5% 61%
6 Canada 170.0 4% 65%
7 Turkmenistan 165.0 4% 70%
8 Algeria 150.0 4% 73%
9 Nigeria 145.0 4% 77%
10 Australia 140.0 4% 81%
11 Norway 110.0 3% 84%
12 Uzbekistan 95.0 2% 86%
13 Venezuela 90.0 2% 89%
14 China 85.0 2% 91%
15 Indonesia 74.0 2% 93%
16 Malaysia 65.0 2% 94%
17 Peru 60.0 2% 96%
18 Egypt 55.0 1% 97%
19 Bolivia 50.0 1% 99%
20 Netherlands 50.0 1% 100%

The relevant is noticing that the bloc openly pro-USA (USA, Canada, Australia, Norway and Netherlands) controls the ± 36%, and the rest controls ± 64% of production. LATAM only controls near of ± 5%, Africa near of ± 9% and Arab countries near of ± 20%. Only China and Russia controls ± 20% of production.

Finally, only 7 countries control ± 70% (USA, Russia, Iran, Qatar, Saudi Arabia, Canada and Turkmenistan). This means that if USA and Canada is out, the 42% is controlled by a potential pro-China bloc. In fact, a purely pro-China bloc (China, Russia, Iran, Turkmenistan, Argelia, Nigeria and Uzbekistan) could control the ± 42%. However, a non-aligned movement (Qatar, Venezuela, Indonesia, Malasia, Peru and Bolivia) might control ± 15%.

Based on a sample of last 3 years (weekly data to 19/08/23) with ETFs as reference, natural gas has a correlation of ± 12% with uranium, ± 25% with oil and ± 10% with coal. It has an inverse correlation of ± -12% with gold. Their correlation with US500 is ± 7%.

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J. Joel Padilla
https://www.linkedin.com/in/joelpadilla/recent-activity/
https://jjplindex.blogspot.com/



Copyright: Joel Padilla 2023

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