Evolution of the natural gas market in the United StatesIntroductionIn terms of primary energy consumption, the United States of America is the second largest country in the world. It represents approximately 19.5% of the world share. The United States consumed 69.7 billion cubic feet per day versus production of 65.7 billion cubic feet per day in 2012. Crude oil consumption and production in the United States in 2012 were 18.5 respectively. and 8.9 million barrels per day. Looking at the statistics, it can be said that the United States is quite independent when it comes to natural gas. Natural gas accounted for 27% of primary energy consumed in the United States. To reach such a level, the natural gas market has undergone numerous reforms. The case presents the evolution of the gas market which consumes almost 20% of the natural gas in the world. Nascent Phase: State Governments Regulate The natural gas business in the United States dates back to the mid-1800s, when it was a byproduct produced by coal seams. Natural gas was a byproduct and was largely consumed in the same location where it is produced1. The key to gas supply then (and now) is the distribution network. Anticipating the opportunity for natural monopoly, local governments intervened. These governments had a plan to have a single distribution company (in each municipality) and regulate the price charged by it. Only one distribution company operated for the supply of gas in the municipality and in the early stages of the gas market. In the early 1900s intermunicipal trade developed with the growth of the natural gas industry. Pipelines that go outside the purview of the municipal government lead to conflict between governments, leading to a regulatory gap1. Subsequently the respective state governments formed public service commissions and utilities commissions. The FUA restricted the use of natural gas for electricity generation and in large boilers. FERC subsequently issued a series of orders that changed how business is conducted: Orders 380, 436 (open access), 500 (directing withdrawal or payment obligations), 636 (unbundling). The NGPA aimed to set prices on the free market, and investment soared by increasing production. The Repel FUA was approved in 1987, leading to an increase in natural gas consumption. Complete deregulation was declared in 1989. The New York Mercantile Exchange (NYMEx) created the first ever future in 1990. The Energy Policy Act was passed in 1992, boosting the electric generation industry and leading to the creation of more gas-fired power plants. The evolution of the gas market in the United States is a great learning for the world, especially for developing countries like India, Brazil, Egypt, etc..