Potential impact of methane hydrate development on GCC and NEA energy trade

MASDAR: The emergence of unconventional hydrocarbons, such as methane hydrates, may have a major future impact on bilateral trade relations between the countries of Northeast Asia (NEA) and the Gulf Cooperation Council (GCC). In this paper, the historical energy trade relationship between the two regions is examined as well as the evolution and scientific basics of methane hydrates, the methods of methane hydrate extraction, the challenges faced in extraction, and the potential pricing of this alternative fuel source. The analysis shows the viability of methane hydrates as an alternative hydrocarbon as well as the current barriers to full exploitation of this alternative energy source. Policy recommendations are proposed based on the potential for NEA methane hydrate development to become a ‘black swan’ event for GCC countries.