<p>If everything else stays constant then increase in demand will lead to increase in prices.</p>
<p>However, in real life everything constantly changes. For example, if gas producers increase production of gas price may even decrease in long-run. There is also still a lot of unexploited natural gas under the ground. The <a href="https://ourworldindata.org/grapher/natural-gas-proved-reserves?tab=table&amp;time=2020" rel="nofollow noreferrer">Our World in Data</a> shows that world's natural gas reserves, which show how much untapped natural gas is still under the ground, are during last decade at the all time high (the data show we have more natural gas reserves today than in 1980. The 1980 world gas reserves were 70.89 trillion <span class="math-container">$m^3$</span> in 2020 world had 188.07 trillion <span class="math-container">$m^3$</span>). So there is <em>potential</em> for increasing the production to meet and even outpace demand.</p>

CC BY-SA 4.0
2022-01-14T08:36:26.483Z
Thanks for your answer. Would it be a smart move to invest in 'Gas Mining' companies right now?
O'Niel
CC BY-SA 4.0
2022-01-16T01:50:44.923Z
@O'Niel smart move is to invest into passive index fund that just tracks average performance of an economy. You never know what happens, what if tomorrow EU will push to phase out gas like coal. Active trading does not make sense unless you have large teams (or enough time) to make some smart algorithms. You also would need lot of money as that would allow you to beat the market by few percentage point. Other than that you are just gambling. Smart move is to just get into passive fund move bit into bonds as you age and get your average 12-13% return per year without any headaches or hard work.
csilvia
CC BY-SA 4.0
2022-01-13T12:21:47.890Z
2022-01-13T12:21:47.890Z
csilvia
<p>Looking at the following chart
<a href="https://i.sstatic.net/AarPs.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/AarPs.png" alt="Gas prices" /></a>
we can see that while volatile, the gas price is reaching new record heights.</p>
<p>Now I want to refer to some articles: <a href="https://www.reuters.com/markets/commodities/germany-has-decide-gas-to-power-plants-quickly-grid-operator-ngo-2021-11-30/" rel="nofollow noreferrer">Germany has to decide on gas-to-power plants quickly - grid operator, NGO</a> and <a href="https://www.brusselstimes.com/news/belgium-all-news/142987/replacing-nuclear-energy-engie-electrabel-plans-four-gas-plants" rel="nofollow noreferrer">Replacing nuclear energy: Engie Electrabel plans four gas plants</a>.
These articles tell use that even while the European Union has labeled nuclear energy as green energy, most European countries are still choosing to close their nuclear power plants and to 'temporarily' rely on gas plants until renewable energy sources like solar and wind are efficient enough to fulfill the demand for electricity.</p>
<p>My question is: Counting in the already rising gas prices, and inflation, won't it be the case that if countries are building more gas plants the demand for gas will increase a lot? Because those gas plants need to burn gas. Is that not the same gas the average households use to warm their homes? <strong>So, won't countries building more and more gas plants not result in even more rising gas prices for the average person? Because more demand = higher price.</strong></p>

<supply-and-demand><energy-economics><european-union>
Does countries building gas plants result in rising gas prices?
O'Niel
# Does countries building gas plants result in rising gas prices?

(Asked by: username_0 on 2022-01-13)

Looking at the following chart
[![Gas prices](https://i.sstatic.net/AarPs.png)](https://i.sstatic.net/AarPs.png)
we can see that while volatile, the gas price is reaching new record heights.

Now I want to refer to some articles: [Germany has to decide on gas-to-power plants quickly - grid operator, NGO](https://www.reuters.com/markets/commodities/germany-has-decide-gas-to-power-plants-quickly-grid-operator-ngo-2021-11-30/) and [Replacing nuclear energy: Engie Electrabel plans four gas plants](https://www.brusselstimes.com/news/belgium-all-news/142987/replacing-nuclear-energy-engie-electrabel-plans-four-gas-plants).
These articles tell use that even while the European Union has labeled nuclear energy as green energy, most European countries are still choosing to close their nuclear power plants and to 'temporarily' rely on gas plants until renewable energy sources like solar and wind are efficient enough to fulfill the demand for electricity.

My question is: Counting in the already rising gas prices, and inflation, won't it be the case that if countries are building more gas plants the demand for gas will increase a lot? Because those gas plants need to burn gas. Is that not the same gas the average households use to warm their homes? **So, won't countries building more and more gas plants not result in even more rising gas prices for the average person? Because more demand = higher price.**

**Tags:** supply-and-demand, energy-economics, european-union


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## 1 answers

### Answer by username_1 on 2022-01-13. Score: 2 | Accepted answer

If everything else stays constant then increase in demand will lead to increase in prices.

However, in real life everything constantly changes. For example, if gas producers increase production of gas price may even decrease in long-run. There is also still a lot of unexploited natural gas under the ground. The [Our World in Data](https://ourworldindata.org/grapher/natural-gas-proved-reserves?tab=table&time=2020) shows that world's natural gas reserves, which show how much untapped natural gas is still under the ground, are during last decade at the all time high (the data show we have more natural gas reserves today than in 1980. The 1980 world gas reserves were 70.89 trillion $m^3$ in 2020 world had 188.07 trillion $m^3$). So there is *potential* for increasing the production to meet and even outpace demand.

> **Comments:**
> **username_0**: Thanks for your answer. Would it be a smart move to invest in 'Gas Mining' companies right now?  
> **username_1**: @username_0 smart move is to invest into passive index fund that just tracks average performance of an economy. You never know what happens, what if tomorrow EU will push to phase out gas like coal. Active trading does not make sense unless you have large teams (or enough time) to make some smart algorithms. You also would need lot of money as that would allow you to beat the market by few percentage point. Other than that you are just gambling. Smart move is to just get into passive fund move bit into bonds as you age and get your average 12-13% return per year without any headaches or hard work.  

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