European natural gas market power grows as resources decline, impacting prices.
The European natural gas market is facing challenges due to decreasing local resources and reliance on a few big exporters, giving them more control over prices. A study looked at future scenarios using a model that considers these factors. Limited resources affect production decisions and future opportunities, influenced by big producers' ability to set prices higher than costs. The study examined how global LNG market conditions impact market shares of gas suppliers and the rate of using up European resources. The prices of resource constraints affect how different energy sources are used in different scenarios.