What Are the Reasons Behind the Soaring Gas Prices?
As the Northern Hemisphere has moved into winter, the current worldwide surge in energy prices has raised fears of an energy crisis with serious implications. The focus of this brief Instant Insight is twofold. First, we provide a brief overview of the current energy market. We then discuss the potential short- and long-term implications for users of natural gas, both residential and industrial. The analysis highlights that, although the world debated reducing investment in fossil fuels at COP26 in Glasgow, OPEC (Organization of the Petroleum Exporting Countries) and its partners have had to deal with calls from major energy consumers to increase production to curb the current price trend.
Research AssociateRaed is a research associate in the Markets and Industrial Development program, with a particular interest in industrial development, economic diversification,…Raed is a research associate in the Markets and Industrial Development program, with a particular interest in industrial development, economic diversification, and econometric modeling. He has worked with different types of econometric modeling techniques on different projects, especially in the field of economic diversification and oil prices. Prior to joining KAPSARC, Raed worked for Standard & Poor's analytics division, where he was involved in designing the first probability of default model tailored to the Saudi economy. Raed is the author of the 2012 book, Does the U.S. Dollar Have an Effect on the Price of Oil? He earned his Ph.D. in Economics from Southern Illinois University and was awarded a Master of Science in Economics from California State Polytechnic University. The title of his dissertation was "Economic Diversification: The Case of Saudi Arabia with Reference to Rich Natural Resource Countries.”
Fellow IIwas a full professor of economics at Lille Catholic University and director of the Smart & Sustainable Cities research unit.…was a full professor of economics at Lille Catholic University and director of the Smart & Sustainable Cities research unit. Fateh has also held various positions at the French Scientific and Technical Center for Building and led multiple collaborative projects for the French Ministry of Ecological Transition and the European Commission. He is an energy and environmental economist drawing from the fields of applied microeconomics, energy modeling, and econometrics.
He has published widely on household energy consumption, energy-saving behaviors, individual preference and investment in energy efficiency, energy poverty, renewables, and energy policy. He received a habilitation for supervising doctoral research from Orléans University, a Ph.D. in Economics, an M.S. in Applied Economics & Decision Theory from Littoral University, and an engineering degree in statistics.
His work has been published in journals including Ecological Economics, The Energy Journal, Energy Economics, Economic Surveys, Energy Policy, and Environmental Management
Expertise
Energy and Environmental Economics; Energy Efficiency; Energy Demand; Fuel Poverty; Energy Policy; Energy Saving Behaviors; Applied Econometrics; Smart and Sustainable Cities.
