Natural gas pricing policies in Southeast Asia

International Nuclear Information System (INIS)

Pacudan, R.B.

1998-01-01

The very dynamic economies of Southeast Asia have recently been experiencing a rapid increase in energy demand. Parallel to this development, there has been an increase in the utilization of indigenous natural gas resources. This article reviews gas-pricing policies in the region, which partly explain the rise in gas utilization. Although diverse, energy pricing policies in Southeast Asia address the common objective of enhancing domestic gas production and utilization. The article concludes that a more rational gas-pricing policy framework is emerging in the region. In global terms, gas pricing in the region tends to converge in a market-related framework, despite the many different pricing objectives of individual countries, and the predominance of non-economic pricing objectives in certain countries (especially gas-rich nations). Specifically, governments have been flexible enough to follow global trends and initiate changes in contractual agreements (pricing and profit-sharing), giving oil companies more favourable terms, and encouraging continued private investment in gas development. At the same time, promotional pricing has also been used to increase utilization of gas, through set prices and adjusted taxes achieving a lower price level compared to substitute fuels. For an efficient gas-pricing mechanism, refinements in the pricing framework should be undertaken, as demand for gas approaches existing and/or forecast production capacities. (author)

The impact of high oil prices on natural gas

International Nuclear Information System (INIS)

Koevoet, H.

2003-01-01

The principle of gas-to-oil (oil prices determine the price of natural gas) in the Netherlands and several other developments elsewhere (war in Iraq and a cold winter in the USA) has caused high natural gas prices. The question is whether the liberalization of the energy market can change this principle [nl

Decoupling the Oil and Gas Prices. Natural Gas Pricing in the Post-Financial Crisis Market

International Nuclear Information System (INIS)

Kanai, Miharu

2011-01-01

This paper looks into natural gas pricing in the post-financial crisis market and, in particular, examines the question whether the oil-linked gas pricing system has outlived its utility as global gas markets mature and converge more rapidly than expected and as large new resources of unconventional gas shift the gas terms-of-trade. Two opposing natural gas pricing systems have coexisted for the last two decades. On the one hand, there is traditional oil-linked pricing, used in pipeline gas imports by Continental European countries and in LNG imports by the countries in Far East. The other is the system led by futures exchanges in deregulated, competitive markets largely in the UK and the US. World gas markets are changing and the basis and mechanisms of price formation are changing with them. There is no reason to expect a revolution in gas pricing, but formulas designed to address the challenges of the 1970's will need to adjust to the realities of the present and expectations for the 21. century. Because such changes will imply a redistribution of costs and benefits, vested shareholders will defend the status quo. But hopefully and ultimately, appropriately regulated markets will assert themselves and shareholders along the entire value chain will have their interests served

Natural gas prices

International Nuclear Information System (INIS)

Johnson, W.A.

1990-01-01

Since the 1970s, many electric utilities and industrial boiler fuel users have invested in dual fuel use capability which has allowed them to choose between natural gas, residual fuel oil, and in some instances, coal as boiler fuels. The immediate reason for this investment was the need for security of supply. Wellhead regulation of natural gas prices had resulted in shortages during the 1970s. Because many industrial users were given lowest priority in pipeline curtailments, these shortages affected most severely boiler fuel consumption of natural gas. In addition, foreign supply disruptions during the 1970s called into question the ready availability of oil. Many boiler fuel users of oil responded by increasing their ability to diversify to other sources of energy. Even though widespread investment in dual fuel use capability by boiler fuel users was initially motivated by a need for security of supply, perhaps the most important consequence of this investment was greater substitutability between natural gas and resid and a more competitive boiler fuel market. By the early 1980s, most boiler fuel users were able to switch from one fuel to another and often did for savings measured in pennies per MMBtu. Boiler fuel consumption became the marginal use of both natural gas and resid, with coal a looming threat on the horizon to both fuels

Price dynamics of natural gas and the regional methanol markets

International Nuclear Information System (INIS)

Masih, A. Mansur M.; Albinali, Khaled; DeMello, Lurion

2010-01-01

A 'methanol economy' based mainly on natural gas as a feedstock has a lot of potential to cope with the current and ongoing concerns for energy security along with the reduction of CO-2 emissions. It is, therefore, important to examine the price dynamics of methanol in order to ascertain whether the price of methanol is mainly natural-gas-cost driven or demand driven in the context of different regions. This paper is the first attempt to investigate the following: (1) is the natural gas price significantly related to the regional methanol prices in the Far East, United States and Europe? (2) who drives the regional methanol prices? The paper is motivated by the recent and growing debate on the lead-lag relationship between natural gas and methanol prices. Our findings, based on the most recently developed 'long-run structural modelling' and subject to the limitations of the study, tend to suggest: (1) natural gas price is cointegrated with the regional methanol prices, (2) our within-sample error-correction model results tend to indicate that natural gas was driving the methanol prices in Europe and the United States but not in the Far East. These results are consistent, during most of the period under review (1998.5-2007.3), with the surge in demand for methanol throughout the Far East, particularly in China, Taiwan and South Korea, which appears to have played a relatively more dominant role in the Far East compared to that in Europe and the United States within the framework of the dynamic interactions of input and product prices. However, during the post-sample forecast period as evidenced in our variance decompositions analysis, the emergence of natural gas as the main driver of methanol prices in all three continents is consistent with the recent surge in natural gas price fueled mainly, among others, by the strong hedging activities in the natural gas futures/options as well as refining tightness (similar to those that were happening in the crude oil markets

Asymmetric and nonlinear pass-through of crude oil prices to gasoline and natural gas prices

International Nuclear Information System (INIS)

Atil, Ahmed; Lahiani, Amine; Nguyen, Duc Khuong

2014-01-01

In this article, we use the recently developed nonlinear autoregressive distributed lags (NARDL) model to examine the pass-through of crude oil prices into gasoline and natural gas prices. Our approach allows us to simultaneously test the short- and long-run nonlinearities through positive and negative partial sum decompositions of the predetermined explanatory variables. It also offers the possibility to quantify the respective responses of gasoline and natural gas prices to positive and negative oil price shocks from the asymmetric dynamic multipliers. The obtained results indicate that oil prices affect gasoline prices and natural gas prices in an asymmetric and nonlinear manner, but the price transmission mechanism is not the same. Important policy implications can be learned from the empirical findings. - Highlights: • The pass-through of crude oil prices into gasoline and natural gas prices is examined. • We use a NARDL model to test for the long-run and short-run asymmetric reactions. • Both gasoline and natural gas prices significantly adjust to changes in the price of oil. • Negative oil shocks have greater effects than positive oil shocks. • Policy implications are discussed

Natural gas pricing reform in China: Getting closer to a market system?

International Nuclear Information System (INIS)

Paltsev, Sergey; Zhang, Danwei

2015-01-01

Recent policy in China targets an increase in the contribution of natural gas to the nation's energy supply. Historically, China's natural gas prices have been highly regulated with a goal to protect consumers. The old pricing regime failed to provide enough incentives for natural gas suppliers, which often resulted in natural gas shortage. A new gas pricing reform was tested in Guangdong and Guangxi provinces in 2011, and introduced nationwide in 2013. The reform is aimed at creating a more market-based pricing mechanism. We show that a substantial progress toward a better predictability and transparency of prices has been made. The prices are now more connected with the international fuel oil and liquid petroleum gas prices. The government's approach for a temporary two-tier pricing when some volumes are still traded at old prices reduced a potential opposition during the new regime implementation. Some limitations of the natural gas pricing remain as it created biased incentives for producers and favors large natural gas suppliers. The pricing reform at its current stage falls short of establishing a complete market mechanism driven by an interaction of supply and demand of natural gas in China. - Highlights: • China's reform of natural gas pricing is in effect nationwide from 2013. • Prices are now connected to international fuel oil and liquid petroleum gas prices. • The reform benefits domestic producers and importers of natural gas. • There are still price distortions between industrial and residential sector. • The reform needs to create a system where both supply and demand are considered.

Natural gas consumption and economic growth: Are we ready to natural gas price liberalization in Iran?

International Nuclear Information System (INIS)

Heidari, Hassan; Katircioglu, Salih Turan; Saeidpour, Lesyan

2013-01-01

This paper examines the relationship between natural gas consumption and economic growth in Iran within a multivariate production model. We also investigate the effects of natural gas price on its consumption and economic growth using a demand side model. The paper employs bounds test approach to level relationship over the period of 1972–007. We find evidence of bidirectional positive relationship between natural gas consumption and economic growth in short-run and long-run, based on the production model. The findings also suggest that real GDP growth and natural gas have positive and negative impacts on gross fixed capital formation, respectively. Employment, however, was found to have negative but insignificant impact on gross fixed capital formation. Moreover, the estimation results of demand side model suggest that natural gas price has negative and significant impact on natural gas consumption only in the long-run, though there is insignificant impact on economic growth. These results imply that the Iranian government's decision for natural gas price liberalization has the adverse effects on economic growth and policy makers should be cautious in doing this policy. - Highlights: • Iran has been considered as a major natural gas producer in the world. • This paper examines the relationship between gas consumption and growth in Iran. • Positive impact of gas consumption on growth has been obtained. • The paper finds that gas consumption and income reinforce each other in Iran. • Natural gas price has also negative and significant impact on natural gas consumption in Iran

Accounting for fuel price risk when comparing renewable to gas-fired generation: the role of forward natural gas prices

International Nuclear Information System (INIS)

Bolinger, Mark; Wiser, Ryan; Golove, William

2006-01-01

Unlike natural gas-fired generation, renewable generation (e.g., from wind, solar, and geothermal power) is largely immune to fuel price risk. If ratepayers are rational and value long-term price stability, then-contrary to common practice-any comparison of the levelized cost of renewable to gas-fired generation should be based on a hedged gas price input, rather than an uncertain gas price forecast. This paper compares natural gas prices that can be locked in through futures, swaps, and physical supply contracts to contemporaneous long-term forecasts of spot gas prices. We find that from 2000 to 2003, forward gas prices for terms of 2-10 years have been considerably higher than most contemporaneous long-term gas price forecasts. This difference is striking, and implies that comparisons between renewable and gas-fired generation based on these forecasts over this period have arguably yielded results that are biased in favor of gas-fired generation

Deliverability and regional pricing in U.S. natural gas markets

International Nuclear Information System (INIS)

Brown, Stephen P.A.; Yuecel, Mine K.

2008-01-01

During the 1980s and early 90s, interstate natural gas markets in the United States made a transition away from the regulation that characterized the previous three decades. With abundant supplies and plentiful pipeline capacity, a new order emerged in which freer markets and arbitrage closely linked natural gas price movements throughout the country. After the mid-1990s, however, U.S. natural gas markets tightened and some pipelines were pushed to capacity. We look for the pricing effects of limited arbitrage through causality testing between prices at nodes on the U.S. natural gas transportation system and interchange prices at regional nodes on North American electricity grids. Our tests do reveal limited arbitrage, which is indicative of bottlenecks in the U.S. natural gas pipeline system. (author)

Deregulation, market structure and gas prices in the Canadian Natural Gas Industry

International Nuclear Information System (INIS)

Uhler, R.S.

1992-01-01

During the course of the development of the natural gas industry in Canada, gas purchase and sales markets have evolved from being relatively free of regulation to being highly regulated and back again. Though pipeline transport charges were regulated, the pipeline companies, or their subsidiaries, owned the gas that they transported and price and other provisions of purchase and sales contracts were freely negotiated with the producers at one end and distributing utilities or industrial users at the other end. The Western Accord of 1985 set the process of deregulation of the Canadian natural gas industry in motion. On November 1, 1986, natural gas prices in interprovincial trade were deregulated in that domestic natural gas prices were to be freely negotiated. Although not stated explicitly, government policy is to permit export prices to be freely negotiated so long as they do not fall below domestic prices. The deregulation process has dramatically changed the relationship between buyers and sellers. Of particular importance is that deregulation has permitted companies to negotiate gas purchase contracts directly with producers with the pipeline company acting solely as a gas transporter. The purpose of this paper is to examine the forces that have led to shorter term contracts and to examine the likely effect of these contract terms on reservoir development investment incentives. 5 refs., 3 figs

Easing the natural gas crisis: Reducing natural gas prices through increased deployment of renewable energy and energy efficiency

Energy Technology Data Exchange (ETDEWEB)

Wiser, Ryan; Bolinger, Mark; St. Clair, Matt

2004-12-21

Heightened natural gas prices have emerged as a key energy-policy challenge for at least the early part of the 21st century. With the recent run-up in gas prices and the expected continuation of volatile and high prices in the near future, a growing number of voices are calling for increased diversification of energy supplies. Proponents of renewable energy and energy efficiency identify these clean energy sources as an important part of the solution. Increased deployment of renewable energy (RE) and energy efficiency (EE) can hedge natural gas price risk in more than one way, but this paper touches on just one potential benefit: displacement of gas-fired electricity generation, which reduces natural gas demand and thus puts downward pressure on gas prices. Many recent modeling studies of increased RE and EE deployment have demonstrated that this ''secondary'' effect of lowering natural gas prices could be significant; as a result, this effect is increasingly cited as justification for policies promoting RE and EE. This paper summarizes recent studies that have evaluated the gas-price-reduction effect of RE and EE deployment, analyzes the results of these studies in light of economic theory and other research, reviews the reasonableness of the effect as portrayed in modeling studies, and develops a simple tool that can be used to evaluate the impact of RE and EE on gas prices without relying on a complex national energy model. Key findings are summarized.

Natural gas prices in the Maritimes : an energy market assessment

International Nuclear Information System (INIS)

2004-03-01

The National Energy Board monitors the supply and price of natural gas in the Maritimes. This report contains the results and analysis of a survey of the wholesale natural gas prices paid by Canadian buyers in the Maritimes from November 2002 to October 2003. The objective of the report is to improve the understanding of the market factors that influence wholesale natural gas prices in the Maritimes. A comparative evaluation of domestic and export prices shows that Canadian buyers have had access to gas at prices similar to the export market at St. Stephen, New Brunswick. Since the number of participants in the domestic market is low, only four large buyers have a major impact on average prices in the region. The challenge for small buyers will be to buy gas from others who can divert some of their own sales of use. However, these sellers may not want to over-commit to new firm sales in case they have to re-purchase the gas during shortages that may occur due to fluctuations in production or shipping. It was noted that a new gas supply into the region would support many buyers and sellers, and could lead to a more transparent Maritime natural gas market. The National Energy Board is satisfied that the Maritime natural gas market is currently performing as well as can be expected, given its young stage of development. 1 tab., 8 figs., 1 appendix

Which way the natural gas price. An attempt to predict the direction of natural gas spot price movements using trader positions

International Nuclear Information System (INIS)

Buchanan, W.K.; Hodges, P.; Theis, J.

2001-01-01

This research provides a method of predicting direction of spot price movements in the natural gas market for the month succeeding from market participants positions in the futures market. Cumby and Modest (Cumby, R.E., Modest, D.M., 1987. Testing for market timing ability: a framework for forecast evaluation. Journal of Financial Economics 19, 169-189) provide the backdrop for analyzing the futures market positions of large hedgers and speculators to arrive at conclusions of market price movements in the spot market. This methodology is suggested as a means for municipalities entering the natural gas market to improve upon their ordering of quantities of gas for the ensuing months in order to take advantage of possibly foreseeable price trends

Transatlantic natural gas price and oil price relationships - an empirical analysis

International Nuclear Information System (INIS)

Vasquez Josse, C.I.; Neumann, A.

2006-09-01

Markets for natural gas in industrialized countries have witnessed profound changes in the past two decades. Trade of natural gas at spot markets in North America and Europe expanded and intensified significantly as a direct result of liberalization efforts. We test the relationships of weekly prices for crude oil and natural gas on either side of the Atlantic Basin between 1999 and 2005. Applying co-integration methodology we identify a move toward integration of historically and geographically separated markets for the homogeneous commodity natural gas. (authors)

Helping consumers manage their exposure to volatile natural gas prices

International Nuclear Information System (INIS)

Campion, A.

2004-01-01

This presentation provided a customer's view of forward gas prices and outlined different buying behaviours in terms of characteristics of novice and seasoned buyers. It presented a portfolio overview of natural gas and described the risks facing customers in terms of fixed prices and fixed volumes. An energy smart price plan considers floating gas prices instead of a fixed market price. An automobile manufacturer was presented as an example of a gas consumer that would prefer to manage internal costs of production rather than manage gas volatility. The importance of understanding the drivers of individual businesses was emphasized. Natural Resources Canada and the Office of Energy Efficiency offer financial incentives for manufacturers for energy retrofit feasibility studies that result in energy retrofit projects in lighting, heating, boiler replacement, chiller upgrades, and heat recovery. tabs., figs

Combined natural gas and electricity network pricing

Energy Technology Data Exchange (ETDEWEB)

Morais, M.S.; Marangon Lima, J.W. [Universidade Federal de Itajuba, Rua Dr. Daniel de Carvalho, no. 296, Passa Quatro, Minas Gerais, CEP 37460-000 (Brazil)

2007-04-15

The introduction of competition to electricity generation and commercialization has been the main focus of many restructuring experiences around the world. The open access to the transmission network and a fair regulated tariff have been the keystones for the development of the electricity market. Parallel to the electricity industry, the natural gas business has great interaction with the electricity market in terms of fuel consumption and energy conversion. Given that the transmission and distribution monopolistic activities are very similar to the natural gas transportation through pipelines, economic regulation related to the natural gas network should be coherent with the transmission counterpart. This paper shows the application of the main wheeling charge methods, such as MW/gas-mile, invested related asset cost (IRAC) and Aumman-Shapley allocation, to both transmission and gas network. Stead-state equations are developed to adequate the various pricing methods. Some examples clarify the results, in terms of investments for thermal generation plants and end consumers, when combined pricing methods are used for transmission and gas networks. The paper also shows that the synergies between gas and electricity industry should be adequately considered, otherwise wrong economic signals are sent to the market players. (author)

Natural gas market assessment: Price convergence in North American natural gas markets

International Nuclear Information System (INIS)

1995-12-01

The extent to which Canadian and U.S. natural gas markets have become integrated in the post-deregulation era was assessed. This assessment was accomplished through a statistical analysis of the price movements in Canadian and U.S. gas markets. The analysis pointed to three broad conclusions: (1) on the whole, there has been an increasing degree of integration among North American natural gas markets since price deregulation and the introduction of open access, (2) there is somewhat of a split between eastern and western markets, (3) Alberta's links are stronger with the western U.S. natural gas market than with the market in the eastern U.S. Several factors were cited as contributing to the general increase in market integration, including: (1) increased pipeline capacity and additional pipeline interconnections, coupled with the development of market hubs, (2) improved flexibility of access to pipeline transportation services, (3) improved access to market information and greater trading flexibility which has been facilitated by growing use of electronic bulletin boards and electronic trading systems. The increased market integration was claimed to have benefited both consumers and producers, and to have increased competition in both countries.. 28 refs., 14 figs

North American natural gas liquids pricing and convergence : an energy market assessment

International Nuclear Information System (INIS)

2001-05-01

A background on natural gas liquids (NGL) pricing was presented along with a discussion regarding the impact of energy price convergence. The high energy prices in the fall of 2000 were a result of many factors, including the high price of NGLs. All NGL components such as ethane, propane and butane can be used as petrochemical feedstock. In the winter of 2000/2001 the relationship between liquids and crude oil prices collapsed when high energy prices led to a situation where, for a short while, extraction of liquids from natural gas became uneconomic since producers got more value for NGLs left in the gas stream. As a result, when the supply and demand balances for NGL tightened in many regions of North America, NGL prices were reflecting the unprecedented high natural gas prices. This paper also explained how the four major North American NGL trading hubs in Alberta, Ontario, Kansas and Texas operate. The pricing events of 2000 have impacted on the NGL industry and energy prices remain an issue since both crude oil and natural gas price are forecasted to remain strong in the near future. 5 figs

Canadian natural gas market: dynamics and pricing -- an energy market assessment

International Nuclear Information System (INIS)

2000-11-01

This publication is part of the Energy Market Assessment Program of the National Energy Board. It focuses on identifying factors that affect natural gas prices and describe the current functioning of domestic regional markets in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec and in the Atlantic provinces.The report emphasizes the growth in demand for natural gas throughout North America, and the aggressive response by producers to the current high price environment with increased drilling programs. The report also predicts a supply and demand adjustment over time, and an accompanying relief in natural gas prices, although the Board is not able to predict with certainty any movements in commodity markets. The Board's findings indicate that domestic users of natural gas paid less than export customers until 1998, at which point the two prices have converged. The end result of the convergence was that Canadians have had access to natural gas under terms and conditions which were no less favourable than those in effect for export customers. The influence of electronic trading systems is reviewed, noting that spot markets and futures markets such as the NYMEX and AECO-C/NIT have had a significant impact on the pricing of natural gas, mostly by allowing market participants to manage price volatility by forward contracting. 1 tab., 42 figs., 1 glossary

Gas prices and price process

International Nuclear Information System (INIS)

Groenewegen, G.G.

1992-01-01

On a conference (Gas for Europe in the 1990's) during the Gasexpo '91 the author held a speech of which the Dutch text is presented here. Attention is paid to the current European pricing methods (prices based on the costs of buying, transporting and distributing the natural gas and prices based on the market value, which is deducted from the prices of alternative fuels), and the transparency of the prices (lack of information on the way the prices are determined). Also attention is paid to the market signal transparency and gas-gas competition, which means a more or less free market of gas distribution. The risks of gas-to-gas competition for a long term price stability, investment policies and security of supply are discussed. Opposition against the Third Party Access (TPA), which is the program to implement gas-to-gas competition, is caused by the fear of natural gas companies for lower gas prices and lower profits. Finally attention is paid to government regulation and the activities of the European Commission (EC) in this matter. 1 fig., 6 ills., 1 tab

Papers of the Canadian Institute's forum on natural gas purchasing strategies : critical information for natural gas consumers in a time of diminishing natural gas supplies and higher prices

International Nuclear Information System (INIS)

2003-01-01

This conference provided insight into how to prosper in an increasingly complex natural gas marketplace. The presentations from key industry players offered valuable information on natural gas purchasing strategies that are working in the current volatile price environment. Diminishing natural gas supplies in North America mean that higher prices and volatility will continue. Other market challenges stem from potential cost increases in gas transportation, unbundling of natural gas services, and the changing energy marketing environment. The main factors that will affect prices for the winter of 2004 were outlined along with risk management and the best pricing strategies for businesses. The key strategies for managing the risks associated with natural gas purchase contracts were also reviewed, along with the issue of converging natural gas and electricity markets and the impact on energy consumers. The conference featured 15 presentations, of which 4 have been indexed separately for inclusion in this database. refs., tabs., figs

Natural gas supply, demand and price outlook

International Nuclear Information System (INIS)

Anon.

1992-01-01

Natural gas consumption in the US grew 15.9 percent between 1986 and 1989. Its share of total primary energy use in the US grew from 22.5 percent to 23.8 percent. Despite unusually warm weather and an economic downturn, natural gas use in the first eight months of 1990 fell only modestly from its 1989 pace - while its market share of US total primary energy use has remained stable. The American Gas Association's Total Energy Resource Analysis energy modeling system (A.G.A.-TERA) projects continued growth in natural gas demand and supply. Natural gas is projected to gain a growing share of total US primary use. Natural gas prices are projected to be sufficient to encourage growth in well completions and reserve additions, yet competitive with electricity, fuel oil and other alternative forms of energy

Liquefied natural gas projects in Altamira: impacts on the prices of the natural gas; Proyectos de gas natural licuado en Altamira: impactos sobre los precios del gas natural

Energy Technology Data Exchange (ETDEWEB)

Perez Cordova, Hugo; Elizalde Baltierra, Alberto [Petroleos Mexicanos (PEMEX), (Mexico)

2004-06-15

The possible incorporation of new points of supply of natural gas to the Sistema National de Gasoductos (SNG) through the import of Liquified Natural Gas or (GNL) could cause an important modification in the national balance of supply-demand of the fuel and in its price, if large volumes are received. An analysis is presented of the possible impact that would have in the natural gas national market and in its prices the import of GNL made by the region of Altamira, Tamaulipas. [Spanish] La posible incorporacion de nuevos puntos de oferta de gas natural al Sistema Nacional de Gasoductos (SNG) a traves de la importacion de Gas Natural Licuado (GNL), podria provocar una modificacion importante en el balance oferta-demanda nacional del combustible y en su precio, si se reciben fuertes volumenes. Se presenta un analisis del posible impacto que tendria en el mercado nacional del gas natural y en sus precios la importacion de GNL realizada por la region de Altamira, Tamaulipas.

The relation of monthly spot to futures prices for natural gas

International Nuclear Information System (INIS)

Herbert, J.H.

1993-01-01

The relationship between the spot price for natural gas for a delivery month and the futures contract price for the same delivery month is examined. The estimated regression equation provides a good summary of the relationship between spot and futures prices for the time period and can also be used to obtain accurate forecasts of spot prices. It appears that the natural gas futures market is inefficient. (author)

Natural gas, NGL's and crude: supply, demand and price forecasts

International Nuclear Information System (INIS)

Stauft, T.L.

2003-01-01

This paper presents an overview of the major issues to watch in the crude oil, natural gas, and natural gas liquids (NGL) markets in North America. The presentation began with background information concerning Purvin and Gertz, an employee-owned consulting firm whose employees are chemical engineers, holders of a Master of Business Administration (MBA), or economists. They specialize in providing strategic, commercial, and technical advice to the international energy industry. A closer look at each individual market was provided, looking at demand, supply, price drivers and others. The author concluded that world oil prices continue to be influenced by a war premium. Oil prices support natural gas, as well as the possibility of a supply issue. The gas processing margins have remained strong. The unknown quantities are the weather and economic recovery. figs

Accounting for fuel price risk when comparing renewable togas-fired generation: the role of forward natural gas prices

Energy Technology Data Exchange (ETDEWEB)

Bolinger, Mark; Wiser, Ryan; Golove, William

2004-07-17

Unlike natural gas-fired generation, renewable generation (e.g., from wind, solar, and geothermal power) is largely immune to fuel price risk. If ratepayers are rational and value long-term price stability, then--contrary to common practice--any comparison of the levelized cost of renewable to gas-fired generation should be based on a hedged gas price input, rather than an uncertain gas price forecast. This paper compares natural gas prices that can be locked in through futures, swaps, and physical supply contracts to contemporaneous long-term forecasts of spot gas prices. We find that from 2000-2003, forward gas prices for terms of 2-10 years have been considerably higher than most contemporaneous long-term gas price forecasts. This difference is striking, and implies that comparisons between renewable and gas-fired generation based on these forecasts over this period have arguably yielded results that are biased in favor of gas-fired generation.

Can deployment of renewable energy put downward pressure on natural gas prices?

International Nuclear Information System (INIS)

Wiser, Ryan; Bolinger, Mark

2007-01-01

High and volatile natural gas prices have increasingly led to calls for investments in renewable energy. One line of argument is that deployment of these resources may lead to reductions in the demand for and price of natural gas. Many recent US-based modeling studies have demonstrated that this effect could provide significant consumer savings. In this article we evaluate these studies, and benchmark their findings against economic theory, other modeling results, and a limited empirical literature. We find that many uncertainties remain regarding the absolute magnitude of this effect, and that the reduction in natural gas prices may not represent an increase in aggregate economic wealth. Nonetheless, we conclude that many of the studies of the impact of renewable energy on natural gas prices appear to have represented this effect within reason, given current knowledge. These studies specifically suggest that a 1% reduction in US natural gas demand could lead to long-term average wellhead price reductions of 0.8-2%, and that each megawatt-hour of renewable energy may benefit natural gas consumers to the tune of at least $7.5-20

Can deployment of renewable energy put downward pressure on natural gas prices?

International Nuclear Information System (INIS)

Wiser, R.; Bolinger, M.

2007-01-01

High and volatile natural gas prices have increasingly led to calls for investments in renewable energy. One line of argument is that deployment of these resources may lead to reductions in the demand for and price of natural gas. Many recent US-based modeling studies have demonstrated that this effect could provide significant consumer savings. In this article we evaluate these studies, and benchmark their findings against economic theory, other modeling results, and a limited empirical literature. We find that many uncertainties remain regarding the absolute magnitude of this effect, and that the reduction in natural gas prices may not represent an increase in aggregate economic wealth. Nonetheless, we conclude that many of the studies of the impact of renewable energy on natural gas prices appear to have represented this effect within reason, given current knowledge. These studies specifically suggest that a 1% reduction in US natural gas demand could lead to long-term average wellhead price reductions of 0.8-2%, and that each megawatt-hour of renewable energy may benefit natural gas consumers to the tune of at least $7.5-20. [Author

Renewable energy as a natural gas price hedge: the case of wind

International Nuclear Information System (INIS)

Berry, David

2005-01-01

Electric utilities use natural gas to fuel many of their power plants, especially those plants which provide electricity at peak and intermediate hours. Natural gas prices are highly volatile and have shown a general upward trend. Wind energy can provide a cost-effective hedge against natural gas price volatility or price increases. This conclusion is based on analysis of the costs of marginal conventional generation given the historical probability distribution of natural gas prices, the cost of wind energy, wind integration costs, transmission costs for wind energy, the capacity value of wind, and environmental benefits of wind energy for a hypothetical utility in the Southwestern United States. The efficacy of using wind energy as a hedge at a particular utility will depend on site specific conditions

Market fundamentals, competition and natural-gas prices

International Nuclear Information System (INIS)

Hulshof, Daan; Maat, Jan-Pieter van der; Mulder, Machiel

2016-01-01

After the liberalisation of the gas industry, trading hubs have emerged in Europe. Although these hubs appear to be liquid market places fostering gas-to-gas competition, the efficiency of the gas market remains a topic of interest as a fair share of gas is still traded through long-term contracts with prices linked to the oil price while the number of gas suppliers to the European market is limited. In order to assess the efficiency of the gas market, we analyse the day-ahead spot price at the Dutch gas hub over the period 2011–2014. We find that the oil price had a small positive impact on the gas price. Changes in the concentration on the supply side did not affect the movement in gas prices. The availability of gas in storages and the outside temperature negatively influenced the gas price. We also find that the gas price was related to the production of wind electricity. Overall, we conclude that the day-ahead gas prices are predominantly determined by gas-market fundamentals. Policies to further integrate gas markets within Europe may extend this gas-to-gas competition to a larger region. - Highlights: •We analyse the development of the day-ahead spot price at TTF over 2011–2014. •The oil price had a small impact on the gas price, while the coal price had no effect. •Changes in the concentration on the supply side did not affect the gas prices. •The gas prices are predominantly determined by weather and storage availability. •Policies to integrate gas markets foster gas-to-gas competition.

The ties between natural gas and oil prices

International Nuclear Information System (INIS)

Maisonnier, G.

2006-01-01

On the European continent, the price of natural gas is still tied directly and to a great extent to the price of competing energies, especially heavy fuel oil and home heating oil. In other words, the gas market is linked to the oil market. Under the effect of deregulation, this model is likely to change in the future, making a shift like that which took place on the American market in the past. (author)

Transparency in natural gas prices in Western Europe

International Nuclear Information System (INIS)

Vrieling, E.B.; Munksgaard, J.; Hopper, R.J.

1989-11-01

The present situation on price transparency in Western Europe and North america within the context of the European internal gas market is analyzed. In chapter one the ideas and policy proposals put forward by the European Commission are discussed. Special attention is paid to the situation of the large industrial consumers. It is argued that price transparency needs to be extended to more upstream price aspects. This includes information on city-gates prices, transmission and handling charges in addition to wellhead and import prices. In Western Europe (chapter two) two pricing principles can be distinguished at the final consumer level: pricing according to costs and prices according to market value. The first principle is applied in France, Belgium, the United Kingdom and Austria, as some cost elements are included in the tariff calculations in Italy. Countries where a market-evaluation methodology is applied are Denmark, the Netherlands, Germany, Spain and Switzerland. In North America (chapter three) price transparency is extensive and part of the necessary conditions of an open access contract carriage market. In order to integrate the aspect of price transparency in the broader framework of the internal gas market a model of an integrated natural gas market is described in chapter four. The model specifies the preconditions of a truly integrated gas market, i.e. accessible market entry at all levels of the gas sector and for all market players, equal market opportunity and a regulatory oversight system. A brief comparison between the model and the actual market situation in Western Europe showed that hardly any of these preconditions are met. The comparison points out which actions need to be taken to implement an internal gas market in Western Europe. 9 appendices

Price Comovement Between Biodiesel and Natural Gas

OpenAIRE

Janda, Karel; Kourilek, Jakub

2016-01-01

We study relationship between biodiesel, as a most important biofuel in the EU, relevant feedstock commodities and fossil fuels. Our main interest is to capture relationship between biodiesel and natural gas. They are both used either directly as a fuel or indirectly in form of additives in transport. Therefore, our purpose is to �nd price linkage between biofuel and natural gas to support or reject the claim that they compete as alternative fuels and potential substitutes. The estimated p...

LNG (Liquefied Natural Gas): the natural gas becoming a world commodity and creating international price references; GNL (Gas Natural Liquefeito): o gas natural se tornando uma commodity mundial e criando referencias de preco internacionais

Energy Technology Data Exchange (ETDEWEB)

Demori, Marcio Bastos [PETROBRAS, Rio de Janeiro, RJ (Brazil). Coordenacao de Comercializacao de Gas e GNL; Santos, Edmilson Moutinho dos [Universidade de Sao Paulo (USP), SP (Brazil). Inst. de Eletrotecnica e Energia. Programa Interunidades de Pos-Graduacao em Energia (PIPGE)

2004-07-01

The transportation of large quantities of natural gas through long distances has been done more frequently by Liquefied Natural Gas (LNG). The increase of natural gas demand and the distance of major reserves, allied to technological improvements and cost reduction through LNG supply chain, have triggered the expressive increase of LNG world market This paper tries to evaluate the influence that LNG should cause on natural gas world market dynamic, analyzing the tendency of gas to become a world commodity, creating international price references, like oil and its derivates. For this, are shown data as natural gas world reserves, the participation of LNG in natural gas world market and their increase. Furthermore, will be analyzed the interaction between major natural gas reserves and their access to major markets, still considering scheduled LNG projects, the following impacts from their implementation and price arbitrage that should be provoked on natural gas markets. (author)

Price elasticity of natural gas demand in the power generation sector

International Nuclear Information System (INIS)

McArdle, P.F.

1990-01-01

Today, the demand for energy by the electric generation sector is highly competitive and price-responsive. Previous estimates of the price elasticity of natural gas demand in this sector have focused primarily on data from the 1960s and 1970s. Such estimates fail to take full account of economic, regulatory, and legislative developments that have altered the structure of the electric generation market during the 1980s. Structural changes include an increased ability of utilities to choose among generating options, the increase in non-utility generators, the amending of the Fuel Use Act, and a more competitive market for electricity. An accurate estimate of price elasticity requires a refocusing on data from the post-1983 period. The purpose of this paper is to answer two questions: how price responsive (elastic) is natural gas demand in this market; and what changes in natural gas demand elasticity have occurred over time

Visibility graph network analysis of natural gas price: The case of North American market

Science.gov (United States)

Sun, Mei; Wang, Yaqi; Gao, Cuixia

2016-11-01

Fluctuations in prices of natural gas significantly affect global economy. Therefore, the research on the characteristics of natural gas price fluctuations, turning points and its influencing cycle on the subsequent price series is of great significance. Global natural gas trade concentrates on three regional markets: the North American market, the European market and the Asia-Pacific market, with North America having the most developed natural gas financial market. In addition, perfect legal supervision and coordinated regulations make the North American market more open and more competitive. This paper focuses on the North American natural gas market specifically. The Henry Hub natural gas spot price time series is converted to a visibility graph network which provides a new direction for macro analysis of time series, and several indicators are investigated: degree and degree distribution, the average shortest path length and community structure. The internal mechanisms underlying price fluctuations are explored through the indicators. The results show that the natural gas prices visibility graph network (NGP-VGN) is of small-world and scale-free properties simultaneously. After random rearrangement of original price time series, the degree distribution of network becomes exponential distribution, different from the original ones. This means that, the original price time series is of long-range negative correlation fractal characteristic. In addition, nodes with large degree correspond to significant geopolitical or economic events. Communities correspond to time cycles in visibility graph network. The cycles of time series and the impact scope of hubs can be found by community structure partition.

Effect of Energy Efficiency Standards on Natural Gas Prices

Energy Technology Data Exchange (ETDEWEB)

Carnall, Michael; Dale, Larry; Lekov, Alex

2011-07-26

A primary justification for the establishment of energy efficiency standards for home appliances is the existence of information deficiencies and externalities in the market for appliances. For example, when a long-term homeowner purchases a new gas-fired water heater, she will maximize the value of her purchase by comparing the life-cycle cost of ownership of available units, including both total installed cost - purchase price plus installation costs - and operating cost in the calculus. Choice of the appliance with the lowest life-cycle costs leads to the most economically efficient balance between capital cost and fuel cost. However, if the purchaser's expected period of ownership is shorter than the useful life of the appliance, or the purchaser does not pay for the fuel used by the appliance, as is often the case with rental property, fuel cost will be external to her costs, biasing her decision toward spending less on fuel efficiency and resulting in the purchase of an appliance with greater than optimal fuel usage. By imposing an efficiency standard on appliances, less efficient appliances are made unavailable, precluding less efficient purchases and reducing fuel usage. The reduction in fuel demanded by residential users affects the total demand for such fuels as natural gas, for example. Reduced demand implies that residential customers are willing to purchase less gas at each price level. That is, the demand curve, labeled D{sub 0} in Figure 1, shifts to the left to D{sub 1}. If there is no change in the supply function, the supply curve will intersect the demand curve at a lower price. Residential demand is only one component of the total demand for natural gas. It is possible that total demand will decline very little if demand in other sectors increases substantially in response to a decline in the price. If demand does decrease, modeling studies generally confirm the intuition that reductions in demand for natural gas will result in reductions

Natural gas prices in Italy. Tariffs geographical distribution

International Nuclear Information System (INIS)

Marrocchelli, A.

2000-01-01

The annual report on services and activity carries at some evaluations of data concerned the natural gas market: total consumption, costs and prices in Italy and comparative evaluations with other european countries [it

The lead-lag relationships between spot and futures prices of natural gas

Science.gov (United States)

Zhang, Yahui; Liu, Li

2018-01-01

The lead-lag relationships between spot and futures markets are of great interest for academics. Previous studies neglect the possibility of nonlinear behaviors which may be caused by asymmetry or persistence. To fill this gap, this paper uses the MF-DCCA method and the linear and nonlinear causality tests to explore the causal relationships between natural gas spot and futures prices in the New York Mercantile Exchange. We find that spot and futures prices are positive cross-correlated, the natural gas futures can linearly Granger cause spot price, and there are bidirectional nonlinear causality relationships between natural gas spot and futures prices. Further, we explore the sources of nonlinear causality relationships, and find that the volatility spillover can partly explain the nonlinear causality and affect their cross-correlations.

North American natural gas storage, market and price outlook

International Nuclear Information System (INIS)

George, R.

1999-01-01

A series of overhead viewgraphs accompanied this presentation which dealt with the fundamental factors and short-term considerations that will impact Canadian and U.S. natural gas pricing. The short-term pricing outlook and some transportation issues were also highlighted. The major transportation issues for 1999/2000 are: (1) Nova tolling, (2) incentive tolling and negotiations, (3) decontracting, (4) pipeline project schedules, and (5) land use and environmental considerations. The major supply issues are: (1) impact of oil prices on gas drilling and production, (2) impact of merger and acquisition activity, and (3) land use and environmental considerations. The major demand issues for the same time period are: (1) greenhouse gas emissions, (2) electricity restructuring, and (3) new end-use technologies. 3 tabs., 21 figs

How does increased corn-ethanol production affect US natural gas prices?

International Nuclear Information System (INIS)

Whistance, Jarrett; Thompson, Wyatt

2010-01-01

In recent years, there has been a push to increase biofuel production in the United States. The biofuel of choice, so far, has been ethanol produced from corn. The effects of increased corn-ethanol production on the consumer prices of food and energy continue to be studied and debated. This study examines, in particular, the effects of increased corn-ethanol production on US natural gas prices. A structural model of the natural gas market is developed and estimated using two stage least squares. A baseline projection for the period 2007-2018 is determined, and two scenarios are simulated. In the first scenario, current biofuel policies including EISA mandates, tariffs, and tax credits are removed. In the second scenario, we hold ethanol production to the level required only for largely obligatory additive use. The results indicate that the increased level of corn-ethanol production occurring as a result of the current US biofuel policies may lead to natural gas prices that are as much as 0.25% higher, on average, than if no biofuel policies were in place. A similar comparison between the baseline and second scenario indicates natural gas prices could be as much as 0.5% higher, on average, for the same period.

Canadian natural gas price debate : TCGS view

International Nuclear Information System (INIS)

Johnson, J.

1998-01-01

Issues regarding the Alberta supply of natural gas were debated. Factors considered include pipeline expansions, storage and foreign exchange. The influence of NYMEX was also cited as an important determinant of gas pricing. Currently, the Western Canada Sedimentary Basin's (WCSB) market share is 22 per cent of the North American demand. The WCSB extends through Alberta, British Columbia, Saskatchewan, the Northwest Territories and the Yukon. The Basin's estimated reserves at the end of 1996 were 65 TCF. tabs., figs

Estimating household fuel oil/kerosine, natural gas, and LPG prices by census region

International Nuclear Information System (INIS)

Poyer, D.A.; Teotia, A.P.S.

1994-08-01

The purpose of this research is to estimate individual fuel prices within the residential sector. The data from four US Department of Energy, Energy Information Administration, residential energy consumption surveys were used to estimate the models. For a number of important fuel types - fuel oil, natural gas, and liquefied petroleum gas - the estimation presents a problem because these fuels are not used by all households. Estimates obtained by using only data in which observed fuel prices are present would be biased. A correction for this self-selection bias is needed for estimating prices of these fuels. A literature search identified no past studies on application of the selectivity model for estimating prices of residential fuel oil/kerosine, natural gas, and liquefied petroleum gas. This report describes selectivity models that utilize the Dubin/McFadden correction method for estimating prices of residential fuel oil/kerosine, natural gas, and liquefied petroleum gas in the Northeast, Midwest, South, and West census regions. Statistically significant explanatory variables are identified and discussed in each of the models. This new application of the selectivity model should be of interest to energy policy makers, researchers, and academicians

Price interactions and discovery among natural gas spot markets in North America

International Nuclear Information System (INIS)

Park, Haesun; Mjelde, James W.; Bessler, David A.

2008-01-01

Recent advances in modeling causal flows with time series analysis are used to study relationships among eight North American natural gas spot market prices. Results indicate that the Canadian and US natural gas market is a single highly integrated market. Further results indicate that price discovery tends to reflect both regions of excess demand and supply. Across North America, Malin Hub in Oregon, Chicago Hub, Illinois, Waha, Texas, and Henry Hub, Louisiana region, are the most important markets for price discovery. Opal Hub in Wyoming is an information sink in contemporaneous time, receiving price information but passing on no price information. AECO Hub in Alberta, Canada, receives price signals from several markets and passes on information to Opal and the Oklahoma region. (author)

Fuel prices, emission standards, and generation costs for coal vs natural gas power plants.

Science.gov (United States)

Pratson, Lincoln F; Haerer, Drew; Patiño-Echeverri, Dalia

2013-05-07

Low natural gas prices and stricter, federal emission regulations are promoting a shift away from coal power plants and toward natural gas plants as the lowest-cost means of generating electricity in the United States. By estimating the cost of electricity generation (COE) for 304 coal and 358 natural gas plants, we show that the economic viability of 9% of current coal capacity is challenged by low natural gas prices, while another 56% would be challenged by the stricter emission regulations. Under the current regulations, coal plants would again become the dominant least-cost generation option should the ratio of average natural gas to coal prices (NG2CP) rise to 1.8 (it was 1.42 in February 2012). If the more stringent emission standards are enforced, however, natural gas plants would remain cost competitive with a majority of coal plants for NG2CPs up to 4.3.

Market efficiency, cross hedging and price forecasts: California's natural-gas markets

International Nuclear Information System (INIS)

Woo, C.K.; Olson, A.; Horowitz, I.

2006-01-01

An extensive North American pipeline grid that physically integrates individual natural-gas markets, in conjunction with economic ties binding the California markets to those at Henry Hub, Louisiana and the New York mercantile exchange via an array of financial instruments, suggests that the spot prices at Henry Hub will impact those in California. We verify the suggestion via a partial-adjustment regression model, thus affirming that California traders can exploit the cross-hedging opportunities made available to them via market integration with Henry Hub, and that they can accurately forecast the price they will have to pay to meet future demand based solely on the price of futures at Henry Hub and the price of a California natural-gas basis swaps contract. (author)

Quantifying the value that wind power provides as a hedge against volatile natural gas prices

Energy Technology Data Exchange (ETDEWEB)

Bolinger, Mark; Wiser, Ryan; Golove, William

2002-05-31

Advocates of renewable energy have long argued that wind power and other renewable technologies can mitigate fuel price risk within a resource portfolio. Such arguments--made with renewed vigor in the wake of unprecedented natural gas price volatility during the winter of 2000/2001--have mostly been qualitative in nature, however, with few attempts to actually quantify the price stability benefit that wind and other renewables provide. This paper attempts to quantify this benefit by equating it with the cost of achieving price stability through other means, particularly gas-based financial derivatives (futures and swaps). We find that over the past two years, natural gas consumers have had to pay a premium of roughly 0.50 cents/kWh over expected spot prices to lock in natural gas prices for the next 10 years. This incremental cost is potentially large enough to tip the scales away from new investments in natural gasfired generation and in favor of investments in wind power and other renewable technologies.

Price convergence and information efficiency in German natural gas markets

International Nuclear Information System (INIS)

Growitsch, Christian; Stronzik, Marcus; Nepal, Rabindra

2012-01-01

In 2007, Germany changed network access regulation in the natural gas sector and introduced a so-called entry-exit system. The re-regulation's spot market effects remain to be examined. We use cointegration analysis and a state space model with time-varying coefficients to study the development of natural gas spot prices in the two major trading hubs in Germany and the interlinked Dutch spot market. To analyse information efficiency in more detail, the state space model is extended to an error correction model. Overall, our results suggest a reasonable degree of price convergence between the corresponding hubs. However, allowing for time-variant adjustment processes, the remaining price differentials are only partly explained by transportation costs, indicating capacity constraints. Nonetheless, market efficiency in terms of information processing has increased considerably among Germany and The Netherlands.

Pricing, hedging and risk management : practical tips for natural gas buyers and sellers

International Nuclear Information System (INIS)

Shields, D.

1998-01-01

Risk analysis and techniques to manage risk as it pertains to the natural gas industry were discussed. Portfolio allocations for long-term, short-term fixed price and variable price contracts were described. Options were defined as a market instrument offering the benefits of a fixed price purchase or sale without the obligation of incurring financial or opportunity losses if the market goes against the option buyer. Options should be used as a defence strategy to protect portfolios from price risk in times of uncertainty and to take advantage of current floating market conditions without making a full price commitment. Options can also be used as an offensive strategy to make a directional play on the market or on volatility. Options selling was regarded as a much higher risk than options buying. The variables that affect options premiums were: (1) volatility, (2) time to expiration, (3) underlying price versus strike price, and (4) flexibility. Williams Energy's new world class energy trading floor in Tulsa, Oklahoma was also described. Williams is the largest-volume transporter of natural gas in the U.S. with more than 27,000 miles of pipelines. Williams pipelines transport 16 per cent of all the natural gas used in the U.S. and the company is one of the nation's largest natural gas gatherers and processors. tabs., figs

Natural gas and CO2 price variation: impact on the relative cost-efficiency of LNG and pipelines.

Science.gov (United States)

Ulvestad, Marte; Overland, Indra

2012-06-01

THIS ARTICLE DEVELOPS A FORMAL MODEL FOR COMPARING THE COST STRUCTURE OF THE TWO MAIN TRANSPORT OPTIONS FOR NATURAL GAS: liquefied natural gas (LNG) and pipelines. In particular, it evaluates how variations in the prices of natural gas and greenhouse gas emissions affect the relative cost-efficiency of these two options. Natural gas is often promoted as the most environmentally friendly of all fossil fuels, and LNG as a modern and efficient way of transporting it. Some research has been carried out into the local environmental impact of LNG facilities, but almost none into aspects related to climate change. This paper concludes that at current price levels for natural gas and CO 2 emissions the distance from field to consumer and the volume of natural gas transported are the main determinants of transport costs. The pricing of natural gas and greenhouse emissions influence the relative cost-efficiency of LNG and pipeline transport, but only to a limited degree at current price levels. Because more energy is required for the LNG process (especially for fuelling the liquefaction process) than for pipelines at distances below 9100 km, LNG is more exposed to variability in the price of natural gas and greenhouse gas emissions up to this distance. If the prices of natural gas and/or greenhouse gas emission rise dramatically in the future, this will affect the choice between pipelines and LNG. Such a price increase will be favourable for pipelines relative to LNG.

Quantifying the value that energy efficiency and renewable energy provide as a hedge against volatile natural gas prices

Energy Technology Data Exchange (ETDEWEB)

Bolinger, Mark; Wiser, Ryan; Bachrach, Devra; Golove, William

2002-05-15

Advocates of energy efficiency and renewable energy have long argued that such technologies can mitigate fuel price risk within a resource portfolio. Such arguments--made with renewed vigor in the wake of unprecedented natural gas price volatility during the winter of 2000/2001--have mostly been qualitative in nature, however, with few attempts to actually quantify the price stability benefit that these sources provide. In evaluating this benefit, it is important to recognize that alternative price hedging instruments are available--in particular, gas-based financial derivatives (futures and swaps) and physical, fixed-price gas contracts. Whether energy efficiency and renewable energy can provide price stability at lower cost than these alternative means is therefore a key question for resource acquisition planners. In this paper we evaluate the cost of hedging gas price risk through financial hedging instruments. To do this, we compare the price of a 10-year natural gas swap (i.e., what it costs to lock in prices over the next 10 years) to a 10-year natural gas price forecast (i.e., what the market is expecting spot natural gas prices to be over the next 10 years). We find that over the past two years natural gas users have had to pay a premium as high as $0.76/mmBtu (0.53/242/kWh at an aggressive 7,000 Btu/kWh heat rate) over expected spot prices to lock in natural gas prices for the next 10 years. This incremental cost to hedge gas price risk exposure is potentially large enough - particularly if incorporated by policymakers and regulators into decision-making practices - to tip the scales away from new investments in variable-price, natural gas-fired generation and in favor of fixed-price investments in energy efficiency and renewable energy.

Quantifying the value that energy efficiency and renewable energy provide as a hedge against volatile natural gas prices

International Nuclear Information System (INIS)

Bolinger, Mark; Wiser, Ryan; Bachrach, Devra; Golove, William

2002-01-01

Advocates of energy efficiency and renewable energy have long argued that such technologies can mitigate fuel price risk within a resource portfolio. Such arguments-made with renewed vigor in the wake of unprecedented natural gas price volatility during the winter of 2000/2001-have mostly been qualitative in nature, however, with few attempts to actually quantify the price stability benefit that these sources provide. In evaluating this benefit, it is important to recognize that alternative price hedging instruments are available-in particular, gas-based financial derivatives (futures and swaps) and physical, fixed-price gas contracts. Whether energy efficiency and renewable energy can provide price stability at lower cost than these alternative means is therefore a key question for resource acquisition planners. In this paper we evaluate the cost of hedging gas price risk through financial hedging instruments. To do this, we compare the price of a 10-year natural gas swap (i.e., what it costs to lock in prices over the next 10 years) to a 10-year natural gas price forecast (i.e., what the market is expecting spot natural gas prices to be over the next 10 years). We find that over the past two years natural gas users have had to pay a premium as high as$0.76/mmBtu (0.53/242/kWh at an aggressive 7,000 Btu/kWh heat rate) over expected spot prices to lock in natural gas prices for the next 10 years. This incremental cost to hedge gas price risk exposure is potentially large enough - particularly if incorporated by policymakers and regulators into decision-making practices - to tip the scales away from new investments in variable-price, natural gas-fired generation and in favor of fixed-price investments in energy efficiency and renewable energy

Reference price of natural gas produced in Bacia dos Solimoes; Preco de referencia do gas natural produzido na Bacia do Solimoes

Energy Technology Data Exchange (ETDEWEB)

Valim, Leandro S.; Ferreira, Leticia P.; Correia, Irina S.; Guimaraes, Maria Jose de O.C.; Seidl, Peter R. [Universidade Federal do Rio de Janeiro (UFRJ), RJ (Brazil). Escola de Quimica; Bispo, Luiz Henrique de Oliveira [Universidade Federal do Rio de Janeiro (UFRJ), RJ (Brazil). Escola de Quimica; Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis (ANP), Rio de Janeiro, RJ (Brazil)

2012-07-01

Oil and natural gas are exhaustible resources. Thus, exploitation of these energy sources can lead to shortages and even the absence for future generations. In this context, royalties are included as a way to financially compensate future generations through a monthly payment made by the explorer. In Brazil, the control of the royalties and their distribution is charge of the National Agency of Petroleum, Natural Gas and Biofuels (ANP). Its function is to establish reference prices used for the payment of royalties on oil and natural gas. In this study, three methods were used to calculate royalties, using data from Leste do Urucu field, located in Solimoes Basin. The first one is imposed by Resolution ANP No. 40/2009 that uses the calculation of the reference price of natural gas produced in Brazil. The second one is an alternative method of calculating royalties produced by Bispo, 2011, considering the different compositions of the gas produced and injected. And finally, the Resolution ANP RD No. 983/2011 that uses the calculation of the price of gas injected, considering this as the price of gas processed. When performing the calculation of royalties through the proposed methodologies by Bispo, 2011, and the ANP (Resolution No. 40/2009 and RD 983/2011), the results were similar to each other, and the methodology proposed by Resolution No. 40/2009 was the most different from the others. (author)

Can Deployment of Renewable Energy and Energy Efficiency PutDownward Pressure on Natural Gas Prices

Energy Technology Data Exchange (ETDEWEB)

Wiser, Ryan; Bolinger, Mark

2005-06-01

High and volatile natural gas prices have increasingly led to calls for investments in renewable energy and energy efficiency. One line of argument is that deployment of these resources may lead to reductions in the demand for and price of natural gas. Many recent U.S.-based modeling studies have demonstrated that this effect could provide significant consumer savings. In this article we evaluate these studies, and benchmark their findings against economic theory, other modeling results, and a limited empirical literature. We find that many uncertainties remain regarding the absolute magnitude of this effect, and that the reduction in natural gas prices may not represent an increase in aggregate economic wealth. Nonetheless, we conclude that many of the studies of the impact of renewable energy and energy efficiency on natural gas prices appear to have represented this effect within reason, given current knowledge. These studies specifically suggest that a 1% reduction in U.S. natural gas demand could lead to long-term average wellhead price reductions of 0.8% to 2%, and that each megawatt-hour of renewable energy and energy efficiency may benefit natural gas consumers to the tune of at least $7.5 to $20.

Flexible LNG supply, storage and price formation in a global natural gas market

Science.gov (United States)

Hayes, Mark Hanley

The body of work included in this dissertation explores the interaction of the growing, flexible liquefied natural gas (LNG) trade with the fundamentals of pipeline gas supply, gas storage, and gas consumption. By nature of its uses---largely for residential heating and electric power generation---the consumption of natural gas is highly variable both seasonally and on less predictable daily and weekly timescales. Flexible LNG trade will interconnect previously isolated regional gas markets, each with non-correlated variability in gas demand, differing gas storage costs, and heterogeneous institutional structures. The dissertation employs a series of analytical models to address key issues that will affect the expansion of the LNG trade and the implications for gas prices, investment and energy policy. First, I employ an optimization model to evaluate the fundamentals of seasonal LNG swing between markets with non-correlated gas demand (the U.S. and Europe). The model provides insights about the interaction of LNG trade with gas storage and price formation in interconnected regional markets. I then explore how random (stochastic) variability in gas demand will drive spot cargo movements and covariation in regional gas prices. Finally, I analyze the different institutional structures of the gas markets in the U.S. and Europe and consider how managed gas markets in Europe---without a competitive wholesale gas market---may effectively "export" supply and price volatility to countries with more competitive gas markets, such as the U.S.

The contribution of the DOE's R ampersand D budget in natural gas to energy price security

International Nuclear Information System (INIS)

Sutherland, R.J.

1992-01-01

The energy price volatility model suggests that some of the proposed natural gas programs can contribute to energy price stability. The sector most vulnerable to fuel price variations is, of course, the transportation sector. The most effective strategy to achieve energy pace stability is to reduce petroleum consumption in this sector. The natural gas vehicle program is therefore recommended as potentially important and worthy of further consideration. At this point, distinguishing the merits of various subprograms is not feasible. This result farther supports the conclusion that the DOE's energy R ampersand D portfolio is not efficiently balanced and an increase in oil and gas research should be a high priority. The DOE has responded favorably and has significantly increased its proposed research with the explicit objective of displacing oil in the transportation sector. The enhanced research and development program for energy security, in the NES, proposes major funding, increases in this area. To recommend the further increases proposed by the industry, a careful analysis of incremental benefits and costs is required. The proposed natural as supply program is intended to enhance the future supply of natural gas. As explained above, enhanced gas supplies can reduce the volatility of gas prices and severe the link between gas and oil prices. The gas supply program is recommended as a potentially important strategy to ensure energy price stability. The importance of this point merits restatement. Oil price volatility affects directly the transportation and industrial sectors. The residential, commercial and electric utility sectors are not highly oil dependent. However, oil prices have affected gas prices and gas is used extensively the residential, commercial, industrial and electric utility sectors. Energy price stability is enhanced in these sectors by severing, the link, between oil and gas prices

Have oil and gas prices got separated?

International Nuclear Information System (INIS)

Erdős, Péter

2012-01-01

This paper applies vector error correction models that show that oil and natural gas prices decoupled around 2009. Before 2009, US and UK gas prices had a long-term equilibrium with crude prices to which gas prices always reverted after exogenous shocks. Both US and UK gas prices adjusted to the crude oil price individually, and departure from the equilibrium gas price on one continent resulted in a similar departure on the other. After an exogenous shock, the adjustment between US and UK gas prices took approximately 20 weeks on average, and the convergence was mediated mainly by crude oil with a necessary condition that arbitrage across the Atlantic was possible. After 2009, however, the UK gas price has remained integrated with oil price, but the US gas price decoupled from crude oil price and the European gas price, as the Atlantic arbitrage has halted. The oversupply from shale gas production has not been mitigated by North American export, as there has been no liquefying and export capacity. - Highlights: ► VEC models are applied to investigate the relationship between oil and natural gas prices. ► While natural gas prices in Europe and Asia react to oil price, US gas price decoupled from oil in 2009. ► Since 2009, the US gas price has decoupled from the European and Asian gas prices.

Natural gas pricing and contracting practices in North America

International Nuclear Information System (INIS)

Hassan, F.

1992-01-01

Over the past 5 years the natural gas industry in North America has undergone substantial change as a result of the deregulated market. A comparison is provided of the key contract parameters in gas purchase contracts utilized by local distribution companies, industrial customers, cogenerators and marketers. Issues discussed include pricing mechanisms, indexed contracts, negotiated contracts, combinations, dispute resolution, supply, government regulation, industry structures, financial considerations, perception, geological influences, demand, transmission, storage, distribution, price trends and forecasts, Order 636 in the U.S., the evolution of North American market hubs, the futures market, and 'daisy chains' of connecting pipelines. 15 refs., 7 figs., 1 tab

EFFECTS OF OIL AND NATURAL GAS PRICES ON INDUSTRIAL PRODUCTION IN THE EUROZONE MEMBER COUNTRIES

Directory of Open Access Journals (Sweden)

Yılmaz BAYAR

2014-04-01

Full Text Available Industrial production is one of the leading indicators of gross domestic product which reflects the overall economic performance of a country. In other words decreases or increases in industrial production point out a contracting or expanding economy. Therefore, changes in prices of oil and natural gas which are the crucial inputs to the industrial production are also important for the overall economy. This study examines the effects of changes in oil and natural gas prices on the industrial production in the 18 Eurozone member countries during the period January 2001-September 2013 by using panel regression. We found that oil prices and natural gas prices had negative effect on industrial production in the Eurozone member countries.

Forward curves, scarcity and price volatility in oil and natural gas markets

International Nuclear Information System (INIS)

Geman, Helyette; Ohana, Steve

2009-01-01

The role of inventory in explaining the shape of the forward curve and spot price volatility in commodity markets is central in the theory of storage developed by Kaldor [Kaldor, N. (1939) ''Speculation and Economic Stability'', The Review of Economic Studies 7, 1-27] and Working [Working, H. (1949) ''The theory of the price of storage'', American Economic Review, 39, 1254-1262] and has since been documented in a vast body of financial literature, including the reference paper by Fama and French [Fama, E.F. and K.R. French (1987) ''Commodity futures prices: some evidence on forecast power, premiums and the theory of storage'', Journal of Business 60, 55-73] on metals. The goal of this paper is twofold: 1. validate in the case of oil and natural gas the use of the slope of the forward curve as a proxy for inventory (the slope being defined in a way that filters out seasonality); 2. analyze directly for these two major commodities the relationship between inventory and price volatility. In agreement with the theory of storage, we find that: 1. the negative correlation between price volatility and inventory is globally significant for crude oil; 2. this negative correlation prevails only during those periods of scarcity when the inventory is below the historical average and increases importantly during the winter periods for natural gas. Our results are illustrated by the analysis of a 15 year-database of US oil and natural gas prices and inventory. (author)

Hiking tourism development in protected areas and nature hazard prevention in the Lake Baikal natural territory

Directory of Open Access Journals (Sweden)

Luzhkova Natalia

2013-01-01

Full Text Available Since 2010, recreational development has been permitted in strict nature reserves (zapovedniks in Russia, the most highly protected category of Russian Federal Protected Areas. As zapovedniks comply with the 1b IUCN category for wilderness preservation, human activities within the reserves have been limited and, consequently, there has been little research on the natural hazard impact for tourism. The type of recreational use permitted in the territories and their buffer zones is called Educational Tourism. It is identified as “as a specialized type of ecological tourism where the main goal is an introduction to natural and cultural attractions”. Hiking is seen as one of these suitable types of tourism within the territories of zapovedniks, due to its low impact on natural features. As hiking trails are laid through natural landscapes, it is possible that natural disasters can both damage the infrastructure and cause fatal injuries for visitors. During the planning stages of trail construction, natural hazard monitoring should be conducted. Baikalskii Nature Biosphere Zapovednik in the Lake Baikal region is used as a model territory where scientific research and engineering are employed to better develop hiking tourism. Along with the monitoring of natural processes, several scenarios for trail planning, construction, and maintenance are being analyzed under the threat of mud slides, avalanches and floods.

The law of one price in global natural gas markets. A threshold cointegration analysis

Energy Technology Data Exchange (ETDEWEB)

Nick, Sebastian; Tischler, Benjamin

2014-11-15

The US and UK markets for natural gas are connected by arbitrage activity in the form of shifting trade volumes of liquefied natural gas (LNG). We empirically investigate the degree of integration between the US and the UK gas markets by using a threshold cointegration approach that is in accordance with the law of one price and explicitly accounts for transaction costs. Our empirical results reveal a high degree of market integration for the period 2000-2008. Although US and UK gas prices seemed to have decoupled between 2009 and 2012, we still find a certain degree of integration pointing towards significant regional price arbitrage. However, high threshold estimates in the latter period indicate impediments to arbitrage that are by far surpassing the LNG transport costs difference between the US and UK gas market.

Costly energy : why oil and gas prices are rising and what we can do about it : a collection of progressive analysis and policy alternatives

International Nuclear Information System (INIS)

Klein, S.

2001-02-01

A collection of essays were presented to address the issue of rising oil and gas prices. This issue has significant social and environmental implications and the public wants to know what is driving prices up and who is profiting. The myth that gas taxes are driving price increases was dispelled. It was argued that price hikes are mainly due to crude oil price increases and to refining and marketing price increases. The link between rising prices and free trade was also emphasized. The North American Free Trade Agreement (NAFTA) tied Canada into a North American energy market in which U.S. demand sets prices in Canada. It was suggested that trade rules regarding energy should be changed. Other short and longer-term progressive policy alternatives were also presented in the second part of this report. One possible short-term policy response would be to tax windfall oil and gas profits and direct the resulting revenues to rebates for low-income households and for energy conservation initiatives. It was noted that the environmental benefit of rising prices is that it encourages conservation and improved fuel efficiency. The final part of this report discussed the issue of protecting electricity from deregulation and sited lessons learned from the deregulation of natural gas. 2 tabs., 4 figs

Forward curves, scarcity and price volatility in oil and natural gas markets

Energy Technology Data Exchange (ETDEWEB)

Geman, Helyette [Birkbeck, University of London (United Kingdom); ESCP-EAP (France); Ohana, Steve [ESCP-EAP (France)

2009-07-15

The role of inventory in explaining the shape of the forward curve and spot price volatility in commodity markets is central in the theory of storage developed by Kaldor [Kaldor, N. (1939) ''Speculation and Economic Stability'', The Review of Economic Studies 7, 1-27] and Working [Working, H. (1949) ''The theory of the price of storage'', American Economic Review, 39, 1254-1262] and has since been documented in a vast body of financial literature, including the reference paper by Fama and French [Fama, E.F. and K.R. French (1987) ''Commodity futures prices: some evidence on forecast power, premiums and the theory of storage'', Journal of Business 60, 55-73] on metals. The goal of this paper is twofold: 1. validate in the case of oil and natural gas the use of the slope of the forward curve as a proxy for inventory (the slope being defined in a way that filters out seasonality); 2. analyze directly for these two major commodities the relationship between inventory and price volatility. In agreement with the theory of storage, we find that: 1. the negative correlation between price volatility and inventory is globally significant for crude oil; 2. this negative correlation prevails only during those periods of scarcity when the inventory is below the historical average and increases importantly during the winter periods for natural gas. Our results are illustrated by the analysis of a 15 year-database of US oil and natural gas prices and inventory. (author)

Forecasting Natural Gas Prices Using Wavelets, Time Series, and Artificial Neural Networks.

Science.gov (United States)

Jin, Junghwan; Kim, Jinsoo

2015-01-01

Following the unconventional gas revolution, the forecasting of natural gas prices has become increasingly important because the association of these prices with those of crude oil has weakened. With this as motivation, we propose some modified hybrid models in which various combinations of the wavelet approximation, detail components, autoregressive integrated moving average, generalized autoregressive conditional heteroskedasticity, and artificial neural network models are employed to predict natural gas prices. We also emphasize the boundary problem in wavelet decomposition, and compare results that consider the boundary problem case with those that do not. The empirical results show that our suggested approach can handle the boundary problem, such that it facilitates the extraction of the appropriate forecasting results. The performance of the wavelet-hybrid approach was superior in all cases, whereas the application of detail components in the forecasting was only able to yield a small improvement in forecasting performance. Therefore, forecasting with only an approximation component would be acceptable, in consideration of forecasting efficiency.

Forecasting Natural Gas Prices Using Wavelets, Time Series, and Artificial Neural Networks.

Directory of Open Access Journals (Sweden)

Junghwan Jin

Full Text Available Following the unconventional gas revolution, the forecasting of natural gas prices has become increasingly important because the association of these prices with those of crude oil has weakened. With this as motivation, we propose some modified hybrid models in which various combinations of the wavelet approximation, detail components, autoregressive integrated moving average, generalized autoregressive conditional heteroskedasticity, and artificial neural network models are employed to predict natural gas prices. We also emphasize the boundary problem in wavelet decomposition, and compare results that consider the boundary problem case with those that do not. The empirical results show that our suggested approach can handle the boundary problem, such that it facilitates the extraction of the appropriate forecasting results. The performance of the wavelet-hybrid approach was superior in all cases, whereas the application of detail components in the forecasting was only able to yield a small improvement in forecasting performance. Therefore, forecasting with only an approximation component would be acceptable, in consideration of forecasting efficiency.

Estimating the long-run equilibrium relationship. The case of city-gate and residential natural gas prices

International Nuclear Information System (INIS)

Arano, Kathleen; Velikova, Marieta

2010-01-01

This paper examines market cointegration of city-gate and residential natural gas prices. Cointegration of gas prices across different segments of the industry provides evidence that deregulation has resulted into a more integrated, competitive natural gas industry where gas prices converge into a long-run equilibrium. Our results indicate prices further down the distribution line, the final two points of consumption, are cointegrated for a majority of the US states post open access and retail unbundling, although we find little evidence of perfect market integration. The two price series likewise converge to the long-run equilibrium faster post open access and retail unbundling. Results relative to state level unbundling (choice programs) reveal mixed outcomes with a few states without retail unbundling exhibiting market integration while some states with full unbundling exhibiting non-cointegration. (author)

The influence of prices formation system for natural gas over the sector development

International Nuclear Information System (INIS)

Drummond, P.H.

1988-01-01

An analysis of the existing methodologies concerning natural gas valorization in developing countries is presented. The characteristics of natural gas production, transport and distribution in Brazil, with the purpose of suggesting a pricing policy which could effectively permit its development on a national basis is also described. (author)

Gas Price Formation, Structure and Dynamics

Energy Technology Data Exchange (ETDEWEB)

Davoust, R.

2008-07-01

Our study, focused on gas prices in importing economies, describes wholesale prices and retail prices, their evolution for the last one or two decades, the economic mechanisms of price formation. While an international market for oil has developed thanks to moderate storage and transportation charges, these costs are much higher in the case of natural gas, which involves that this energy is still traded inside continental markets. There are three regional gas markets around the world: North America (the United States, importing mainly from Canada and Mexico), Europe (importing mainly from Russia, Algeria and Norway) and Asia (Japan, Korea, Taiwan, China and India, importing mainly from Indonesia, Malaysia and Australia). A market for gas has also developed in South America, but it will not be covered by our paper. In Europe and the US, due to large domestic resources and strong grids, natural gas is purchased mostly through pipelines. In Northeast Asia, there is a lack of such infrastructures, so imported gas takes mainly the form of Liquefied Natural Gas (LNG), shipped on maritime tankers. Currently, the LNG market is divided into two zones: the Atlantic Basin (Europe and US) and the Pacific Basin (Asia and the Western Coast of America). For the past few years, the Middle East and Africa have tended to be crucial suppliers for both LNG zones. Gas price formation varies deeply between regional markets, depending on several structural factors (regulation, contracting practises, existence of a spot market, liquidity, share of imports). Empirically, the degree of market opening (which corresponds to the seniority in the liberalization process) seems to be the primary determinant of pricing patterns. North America has the most liberalized and well-performing natural gas industry in the world. Gas pricing is highly competitive and is based on supply/demand balances. Spot and futures markets are developed. The British gas sector is also deregulated and thus follows a

Gas Price Formation, Structure and Dynamics

International Nuclear Information System (INIS)

Davoust, R.

2008-01-01

Our study, focused on gas prices in importing economies, describes wholesale prices and retail prices, their evolution for the last one or two decades, the economic mechanisms of price formation. While an international market for oil has developed thanks to moderate storage and transportation charges, these costs are much higher in the case of natural gas, which involves that this energy is still traded inside continental markets. There are three regional gas markets around the world: North America (the United States, importing mainly from Canada and Mexico), Europe (importing mainly from Russia, Algeria and Norway) and Asia (Japan, Korea, Taiwan, China and India, importing mainly from Indonesia, Malaysia and Australia). A market for gas has also developed in South America, but it will not be covered by our paper. In Europe and the US, due to large domestic resources and strong grids, natural gas is purchased mostly through pipelines. In Northeast Asia, there is a lack of such infrastructures, so imported gas takes mainly the form of Liquefied Natural Gas (LNG), shipped on maritime tankers. Currently, the LNG market is divided into two zones: the Atlantic Basin (Europe and US) and the Pacific Basin (Asia and the Western Coast of America). For the past few years, the Middle East and Africa have tended to be crucial suppliers for both LNG zones. Gas price formation varies deeply between regional markets, depending on several structural factors (regulation, contracting practises, existence of a spot market, liquidity, share of imports). Empirically, the degree of market opening (which corresponds to the seniority in the liberalization process) seems to be the primary determinant of pricing patterns. North America has the most liberalized and well-performing natural gas industry in the world. Gas pricing is highly competitive and is based on supply/demand balances. Spot and futures markets are developed. The British gas sector is also deregulated and thus follows a

Natural gas outlook

International Nuclear Information System (INIS)

Molyneaux, M.P.

1998-01-01

An overview of natural gas markets in Canada and in the United States was provided. The major factors that determine the direction of natural gas prices were depicted graphically. Price volatility has decreased in recent months. As expected, April through November total energy consumption reached historically high levels. Demand for natural gas during the summer of 1997 was not as strong as anticipated. Nuclear energy appears to be on the slippery slope, with natural gas-driven electricity projects to fill the void. Hydroelectricity had a strong showing in 1997. Prospects are less bright for 1998 due to above average temperatures. Canadian natural gas export capacity has increased 5.5 times between 1986 and estimated 1999 levels. Despite this, in 1997, deliveries to the United States were marginally behind expectations. Natural gas consumption, comparative fuel prices, natural gas drilling activity, natural gas storage capacity, actual storage by region, and average weekly spot natural gas prices, for both the U. S. and Canada, were also provided. With regard to Canada, it was suggested that Canadian producers are well positioned for a significant increase in their price realization mostly because of the increase in Canada's export capacity in 1997 (+175 Mmcf/d), 1998 (1,060 Mmcf/d) and potentially in 1999 or 2000, via the Alliance Pipeline project. Nevertheless, with current production projections it appears next to impossible to fill the 10.9 Bcf/d of export capacity that will be potentially in place by the end of 1999. tabs., figs

Natural gas pricing policy: the case of the Greek energy market

International Nuclear Information System (INIS)

Caloghirou, Y.; Mourelatos, A.; Papayannakis, L.

1995-01-01

The evolution of the price of natural gas (NG) is examined in industrial and tertiary residential sectors for European Union (EU) countries. The methodological approach is that of comparative analysis. NG price is seen to be positively correlated to prices of liquid fuels. NG price in the tertiary residential sector is significantly higher than that for the industrial sector for all countries examined. An attempt is undertaken to examine tax policies for NG and liquid fuels. All governments of EU countries have the policy of not applying direct taxes to the NG industrial price. They have also taken measures to support its penetration in the residential tertiary sector by applying lower taxes than those on liquid fuels. (author)

Time series analysis applied to construct US natural gas price functions for groups of states

International Nuclear Information System (INIS)

Kalashnikov, V.V.; Matis, T.I.; Perez-Valdes, G.A.

2010-01-01

The study of natural gas markets took a considerably new direction after the liberalization of the natural gas markets during the early 1990s. As a result, several problems and research opportunities arose for those studying the natural gas supply chain, particularly the marketing operations. Consequently, various studies have been undertaken about the econometrics of natural gas. Several models have been developed and used for different purposes, from descriptive analysis to practical applications such as price and consumption forecasting. In this work, we address the problem of finding a pooled regression formula relating the monthly figures of price and consumption volumes for each state of the United States during the last twenty years. The model thus obtained is used as the basis for the development of two methods aimed at classifying the states into groups sharing a similar price/consumption relationship: a dendrogram application, and an heuristic algorithm. The details and further applications of these grouping techniques are discussed, along with the ultimate purpose of using this pooled regression model to validate data employed in the stochastic optimization problem studied by the authors.

Main drivers of natural gas prices in the Czech Republic after the market liberalisation

International Nuclear Information System (INIS)

Slabá, Monika; Gapko, Petr; Klimešová, Andrea

2013-01-01

One of the goals of the European Commission in the energy sector is creating a single competitive European market. The decision to liberalise energy markets has far-reaching consequences not only for gas companies, but also for the rest of the real economy in view of the fact that natural gas is being used as an important primary energy source in several sectors of production and in the power industry. We aim to answer how liberalisation/unbundling has influenced gas pricing/prices in the Czech Republic. We investigate the individual components of end-customer gas prices according to the value chain and we define and structure the drivers of these components. We use a case study from the Czech Republic, one of the Central and Eastern European countries, which, contrary to the old Member States, is buying most of its gas from one supplier (high import dependence and low supply diversity) and where the transmission and distribution network is characterised by a sufficient contractual and physical capacity. We stress that next to basic conditions on the European gas market (import dependency on external gas producers) legal and institutional conditions and the initial market structure of each Member State are also important for the results of the liberalisation. - Highlights: ► We deal with gas pricing in the Czech Republic after liberalisation/unbundling. ► The TSO, DSO price components have increased, the SSO price component has decreased. ► Commodity price for Households started to relate to hub prices. ► Commodity price for Corporates remained oil-linked, however discounts were provided. ► Only some Corporates experienced savings in total purchasing costs of gas.

Electricity to natural gas competition under customer-side technological change: a marginal cost pricing analysis

International Nuclear Information System (INIS)

Gulli', Francesco

2004-01-01

This paper aims at evaluating the impact of technological change (on the customer side of the meter) on the network energy industry (electricity and natural gas). The performances of the small gas fired power technologies and the electrical reversible heat pumps have improved remarkably over the last ten years, making possible (or more viable) two opposite technological trajectories: the fully gas-based system, based on the use of small CHP (combined heat and power generation) plants, which would involve a wide decentralisation of energy supply; the fully electric-based system, based on the use of reversible electric heat pumps, which would imply increasing centralisation of energy supply. The analysis described in this paper attempts to evaluate how these two kinds of technological solutions can impact on inter-service competition when input prices are ste equals to marginal costs of supply in each stage of the electricity and natural gas industries. For this purpose, unbundled prices over time and over space are simulated. In particular the paper shows that unbundling prices over space in not very important in affecting electricity to natural gas competition and that, when prices are set equal to long-run marginal costs, the fully electric-based solution (the reversible heat pump) is by far preferable to the fully gas-based solution (the CHP gas fired small power plant). In consequence, the first best outcome of the technological change would involve increasing large power generation and imported (from the utility grid) electricity consumption. Given this framework, we have to ask ourselves why operators, regulators and legislators are so optimistic about the development of the fully gas-based solutions. In this respect, the paper suggests that market distortions (such as market power, energy taxation and inefficient pricing regulation) might have give an ambiguous representation of the optimal technological trajectory, inducing to overestimate the social value

Exploiting Flexibility in Coupled Electricity and Natural Gas Markets: A Price-Based Approach

DEFF Research Database (Denmark)

Ordoudis, Christos; Delikaraoglou, Stefanos; Pinson, Pierre

2017-01-01

Natural gas-fired power plants (NGFPPs) are considered a highly flexible component of the energy system and can facilitate the large-scale integration of intermittent renewable generation. Therefore, it is necessary to improve the coordination between electric power and natural gas systems....... Considering a market-based coupling of these systems, we introduce a decision support tool that increases market efficiency in the current setup where day-ahead and balancing markets are cleared sequentially. The proposed approach relies on the optimal adjustment of natural gas price to modify the scheduling...

Evaluation of long-term natural gas marketing agreements: An application of commodity forward and option pricing theory

International Nuclear Information System (INIS)

Salahor, G.S.; Laughton, D.G.

1993-01-01

Methods that have been empirically validated in the analysis of short-term traded securities are adapted to evaluate long-term natural gas direct-sale contracts. A sample contract is examined from the perspective of the producer, and analyzed as a series of forward and option contracts. The assessment of contract value is based on the gas price forecast, the volatility in that forecast, and the valuation of risk caused by that volatility. The method presented allows the gas producer to quantify these elements, and to evaluate the variety of terms encountered in direct-sale natural gas agreements, including features such as load factors and penalty charges. The analysis uses as inputs a probabilistic price forecast and a determination of a price of risk for gas prices. Once the forecast volatility is derived from the probabilistic forecast, the forward contracts imbedded in the long-term gas contract can be valued with a risk-discounting model, and optional aspects can be evaluated using the Black-Scholes option pricing method. 10 refs., 3 figs., 2 tabs

Time series analysis applied to construct US natural gas price functions for groups of states

Energy Technology Data Exchange (ETDEWEB)

Kalashnikov, V.V. [Departamento de Ingenieria Industrial y de Sistemas, Tecnologico de Monterrey, Av. Eugenio Garza Sada 2501 Sur, Col. Tecnologico, Monterrey, Nuevo Leon, 64849 (Mexico); Matis, T.I. [Deparment of Industrial Engineering, Texas Tech University, 2500 Broadway, Lubbock, TX 79409 (United States); Perez-Valdes, G.A. [Departamento de Ingenieria Industrial y de Sistemas, Tecnologico de Monterrey, Av. Eugenio Garza Sada 2501 Sur, Col. Tecnologico, Monterrey, Nuevo Leon, 64849 (Mexico); Deparment of Industrial Engineering, Texas Tech University, 2500 Broadway, Lubbock, TX 79409 (United States)

2010-07-15

The study of natural gas markets took a considerably new direction after the liberalization of the natural gas markets during the early 1990s. As a result, several problems and research opportunities arose for those studying the natural gas supply chain, particularly the marketing operations. Consequently, various studies have been undertaken about the econometrics of natural gas. Several models have been developed and used for different purposes, from descriptive analysis to practical applications such as price and consumption forecasting. In this work, we address the problem of finding a pooled regression formula relating the monthly figures of price and consumption volumes for each state of the United States during the last twenty years. The model thus obtained is used as the basis for the development of two methods aimed at classifying the states into groups sharing a similar price/consumption relationship: a dendrogram application, and an heuristic algorithm. The details and further applications of these grouping techniques are discussed, along with the ultimate purpose of using this pooled regression model to validate data employed in the stochastic optimization problem studied by the authors. (author)

Price and volatility transmissions between natural gas, fertilizer, and corn markets

NARCIS (Netherlands)

Etienne, Xiaoli Liao; Trujillo-Barrera, Andrés; Wiggins, Seth

2016-01-01

Purpose – The purpose of this paper is to investigate the price and volatility transmission between natural gas, fertilizer (ammonia), and corn markets, an issue that has been traditionally ignored in the literature despite its significant importance. Design/methodology/approach – The authors

Pricing Natural Gas. The Outlook for the European Market (Summary)

International Nuclear Information System (INIS)

2008-01-01

Long-term gas supply contracts contain price formulae, in which the gas price is usually linked to the price of another commodity, or to the spot price of gas in a particular market. In continental Europe the gas price in international long-term supply contracts is predominantly linked to oil products. At the same time, spot markets for gas in which gas prices are determined by supply and demand are developing in various EU markets. This paper addresses the question of to what extent the traditional form of oil-based price indexation is sustainable and/or will be sustained by the market players. It discusses the considerations the market players may have in favour of one or the other form of indexation, the external forces that may influence the choice of indexation in the short and longer terms and the consequences of change. It argues that pricing systems are a fundamental part of a market organisation, and that a shift to different pricing structures only happens if and when the main actors are convinced that they understand and accept the consequences of such change. It concludes that there is no strong evidence that the current hybrid situation, in which both forms of gas pricing co-exist, cannot continue. There are also no overriding reasons to intervene in the market practices of price formation. Both systems have their advantages and disadvantages under different market conditions, and to some extent complement each other in the current markets. Different types of risk and the appreciation thereof by the trading parties will determine particular choices of pricing rules and contracting conditions. More importantly, in today's market, in which new supplies are slow to come forward, the choice should be left to the market parties, particularly as sellers and buyers do not seem to be in strong disagreement

Canadian natural gas

International Nuclear Information System (INIS)

Lucas, D.A.

1991-01-01

Canada's natural gas industry enjoys a quiet confidence as it looks ahead to the 1990s. In this paper, the author explains why, despite some critical uncertainties, the optimism endures. Reviewing the current conditions of supply, production, consumption, pipelines, and pipeline expansion plans, the author contends that the New World of the 1990s will belong to natural gas. The author's assessment of natural gas markets proceeds far beyond the borders of Canada. The author examines the determinants of gas prices throughout North America and he identifies the one force that promises to seize almost complete control of gas prices throughout the continent. While the analysis points out the attributes of this new pricing regime, it also names the obstacles that could prevent this emerging mechanism from assuming its anticipated position

A comparison of cost-based pricing rules for natural gas distribution utilities

International Nuclear Information System (INIS)

Klein, C.C.

1993-01-01

Partial-equilibrium social welfare deadweight losses under uniform Ramsey pricing, a cost allocation pricing method, and the actual average revenues by customer class for two natural gas distribution utilities are calculated and compared. Marginal cost estimates are derived from a multiple-output translog variable cost function and used, along with three sets of demand elasticities, to generate the Ramsey prices and welfare losses. The actual and cost-allocation prices are taken directly from rate case files. The largest social welfare losses are associated with the cost-allocation rule, as high as 10-25% of revenue, despite suggestions in the literature to the contrary. (Author)

Proceedings of the 1999 natural gas lookout and strategies forum : Price and supply outlook, trading and purchasing strategies

International Nuclear Information System (INIS)

Anon.

1998-01-01

A total of 17 papers were presented at this conference, all of them devoted to a discussion of marketing strategies and price and supply outlook within the natural gas industry in North America. The presentations provided a practical and analytical look at where natural gas prices were heading. They also described winning trading and purchasing strategies. The challenges posed by the deregulation and the expected competition in the natural gas industry in North America also received much attention. tabs., figs

Market value-oriented gas pricing in Germany

International Nuclear Information System (INIS)

Eimermacher, T.

1996-01-01

In Germany, natural gas faces stiff competition from other types of energy. In many applications, natural gas is capable of replacing other fuels. In addition there is a growing gas-to-gas competition in some European countries, either through pipeline construction by a competitor as in Germany or by mandatory third-party access as in UK. Competition leads to market value-oriented energy pricing, which is particularly evident in Germany. For the consumer, this competitive situation ensures that natural gas can be obtained (and remains available in the long term) at competitive prices

Weighted Average Cost of Retail Gas (WACORG) highlights pricing effects in the US gas value chain: Do we need wellhead price-floor regulation to bail out the unconventional gas industry?

International Nuclear Information System (INIS)

Weijermars, Ruud

2011-01-01

The total annual revenue stream in the US natural gas value chain over the past decade is analyzed. Growth of total revenues has been driven by higher wellhead prices, which peaked in 2008. The emergence of the unconventional gas business was made possible in part by the pre-recessional rise in global energy prices. The general rise in natural gas prices between 1998 and 2008 did not lower overall US gas consumption, but shifts have occurred during the past decade in the consumption levels of individual consumer groups. Industry's gas consumption has decreased, while power stations increased their gas consumption. Commercial and residential consumers maintained flat gas consumption patterns. This study introduces the Weighted Average Cost of Retail Gas (WACORG) as a tool to calculate and monitor an average retail price based on the different natural gas prices charged to the traditional consumer groups. The WACORG also provides insight in wellhead revenues and may be used as an instrument for calibrating retail prices in support of wellhead price-floor regulation. Such price-floor regulation is advocated here as a possible mitigation measure against excessive volatility in US wellhead gas prices to improve the security of gas supply. - Highlights: → This study introduces an average retail price, WACORG. → WACORG can monitor price differentials for the traditional US gas consumer groups. → WACORG also provides insight in US wellhead revenues. → WACORG can calibrate retail prices in support of wellhead price-floor regulation. → Gas price-floor can improve security of gas supply by reducing price volatility.

Pricing the (European) option to switch between two energy sources: An application to crude oil and natural gas

International Nuclear Information System (INIS)

Gatfaoui, Hayette

2015-01-01

We consider a firm, which can choose between crude oil and natural gas to run its business. The firm selects the energy source, which minimizes its energy or production costs at a given time horizon. Assuming the energy strategy to be established over a fixed time window, the energy choice decision will be made at a given future date T. In this light, the firm's energy cost can be considered as a long position in a risk-free bond by an amount of the terminal oil price, and a short position in a European put option to switch from oil to gas by an amount of the terminal oil price too. As a result, the option to switch from crude oil to natural gas allows for establishing a hedging strategy with respect to energy costs. Modeling stochastically the underlying asset of the European put, we propose a valuation formula of the option to switch and calibrate the pricing formula to empirical data on a daily basis. Hence, our innovative framework handles widely the hedge against the price increase of any given energy source versus the price of another competing energy source (i.e. minimizing energy costs). Moreover, we provide a price for the cost-reducing effect of the capability to switch from one energy source to another one (i.e. hedging energy price risk). - Highlights: • We consider a firm, which chooses either crude oil or natural gas as an energy source. • The capability to switch offers the firm a hedge against energy commodity price risk. • A European put option prices the ability to switch from crude oil to natural gas. • The capability to switch between two energy sources reduces the firm's energy costs. • The discount illustrates the efficiency of the energy management policy (e.g. timing).

Improved price transparency : how electronic trading is affecting natural gas prices

International Nuclear Information System (INIS)

Gault, G.

2002-01-01

New electronic trading platforms can be categorized as: (1) proprietary or marketplace systems owned by the market maker or liquidity provider, (2) matching systems for brokerage systems where counter parties are matched and electronically executed through bilateral trading agreements, and (3) cleared exchanges which have traditional characteristics such as neutrality, anonymity, and clearing. The Calgary-based Natural Gas Exchange (NGX) is an independent electronic energy exchange. It is owned by OM in Stockholm, Sweden and operates under an order from the Alberta Securities Commission. Its main objective is to provide electronic energy trading and clearing services to participants in the the North American energy market. NGX has transacted more than 270,000 trades with zero default. The services at NGX include: centralized and anonymous electronic trading; centralized risk management and netting; centralized collateral management; transaction facilitation; pipeline title transfer coordination; and, real time price index generation. This paper described the impact of the many different types of trading platforms on liquidity and volatility in the marketplace. It also addresses the future of online energy trading and their respective platforms. Supply and demand of natural gas, storage, and weather are the basic market fundamentals, but trading platforms have an impact of volatility of natural gas because of market fragmentation, transparency, and market systems. As online energy exchanges evolve, we will see a consolidation of online energy exchanges that will thin a shrinking pool of players, and appropriately capitalized and centralized clearinghouses will become the backbone of all major online energy trading operations

Canadian natural gas winter 2005-06 outlook

International Nuclear Information System (INIS)

2005-11-01

An outline of the Canadian natural gas commodity market was presented along with an outlook for Canadian natural gas supply and prices for the winter heating season of 2005-2006. In Canada, the level of natural gas production is much higher than domestic consumption. In 2004, Canadian natural gas production was 16.9 billion cubic feet per day (Bcf/d), while domestic consumption was much lower at 8.2 Bcf/d. The United States, whose natural gas consumption is higher than production, imported about 16 per cent of its natural gas supply from Canada and 3 per cent from other countries via liquefied natural gas imports. Canadian natural gas exports to the United States in 2004 was 8.7 Bcf/d, representing 51 per cent of Canada's production. In Canada, the most important natural gas commodity markets that determine natural gas commodity prices include the intra-Alberta market and the market at the Dawn, Ontario natural gas hub. A well connected pipeline infrastructure connects the natural gas commodity markets in Canada and the United States, allowing supply and demand fundamentals to be transferred across all markets. As such, the integrated natural gas markets in both countries influence the demand, supply and price of natural gas. Canadian natural gas production doubled from 7 to 16.6 Bcf/d between 1986 and 2001. However, in the past 3 years, production from western Canada has leveled out despite record high drilling activity. This can be attributed to declining conventional reserves and the need to find new natural gas in smaller and lower-quality reservoirs. The combination of steady demand growth with slow supply growth has resulted in high natural gas prices since the beginning of 2004. In particular, hurricane damage in August 2005 disrupted natural gas production in the Gulf of Mexico's offshore producing region, shutting-in nearly 9 Bcf/d at the height of damage. This paper summarized some of the key factors that influence natural gas market and prices, with

The price of the natural gas in the producing states: Espirito Santo case; O preco do gas natural nos estados produtores: caso Espirito Santo

Energy Technology Data Exchange (ETDEWEB)

Cometi, Darcy Lannes

2008-07-01

The State of the Espirito Santo will become until the end of 2008, one of the main producers and natural gas exporters of Brazil, where, according to PETROBRAS, the State will produce about 20 million /day m{sup 3}, what it will go to contribute significantly for reduction of the dependence of the Bolivian gas, and still to give support to the natural gas sector in Brazil. The Intention of this work, is to identify proposals so that it has left of the gas produced in the State of the Espirito Santo, has a differentiated price. It does not make sensible the State to pay for the gas that is removed in its proper territory the same price that paid Sao Paulo for the gas that consumes imported of national Bolivia. With the markdown of the gas the State will be able to attract investments of great transport, to generate job and income and to advance in the question of the regional development that is of great importance for the developed cities less. Important to stand out that this study it will present proposals to try to sensitize PETROBRAS, initiating a quarrel on the subject. (author)

Natural Gas and CO2 Price Variation: Impact on the Relative Cost-Efficiency of LNG and Pipelines

OpenAIRE

Øverland, Indra; Ulvestad, Marte

2012-01-01

This article develops a formal model for comparing the cost structure of the two main transport options for natural gas: liquefied natural gas (LNG) and pipelines. In particular, it evaluates how variations in the prices of natural gas and greenhouse gas emissions affect the relative cost-efficiency of these two options. Natural gas is often promoted as the most environmentally friendly of all fossil fuels, and LNG as a modern and efficient way of transporting it. Some research has been carri...

When everyday life becomes a storm on the horizon: families' experiences of good mental health while hiking in nature.

Science.gov (United States)

Baklien, Børge; Ytterhus, Borgunn; Bongaardt, Rob

2016-01-01

Hiking in nature is often presented as a yearning for lost harmony premised on an alleged divide between nature as authentically healthy and society as polluted. This paper's aim is to question this strict divide and the strong belief in nature as having an innate health-providing effect, the biophilia hypothesis, by examining what Norwegian families with young children experience when walking in the forest. Twenty-four conversations with families during a hiking trip in the forest were recorded, and the data were analysed with Giorgi's descriptive phenomenological research method. The paper introduces the general descriptive meaning structure of the phenomenon 'family-hiking with young children'. It shows that a hiking trip clears space for the family in their everyday lives which is largely dominated by relations with non-family members at both work and leisure. The families experience that they actively generate a different existence with a sense of here-and-now presences that can strengthen core family relations and also provide the opportunity to pass down experiences that can be recollected and realized by future generations. This experience is complex and constituted by social practices, which indicate that the biophilia hypothesis seems to be an insufficient explanation of why families go hiking in nature. Nature rather represents a peaceful background that allows for the perpetuation of the family as a social institution and the recreation of cohesion in everyday life.

Natural gas retailing: writing the last chapter of natural gas deregulation

International Nuclear Information System (INIS)

Bjerkelund, T.

1995-01-01

Under the A greement on Natural Gas Markets and Prices of October 1985, the Canadian federal government agreed to deregulate the price of natural gas and to allow a competitive gas market to develop. Several beneficial changes that have occurred as a result of the deregulation were described, including the Industrial Gas Users Association's (IGUA) view on the marketing and sale of natural gas by local gas distributor's (LDC) and the sale within the LDC franchise. IGUA's support for the separation between LDC distribution and LDC sales and marketing activities as the last step in deregulation process, was explained. Several arguments for the opposing view were also discussed. Recommendations were made for effective separation of LDC distribution and LDC sales/marketing activities

Natural gas monthly

Energy Technology Data Exchange (ETDEWEB)

NONE

1998-01-01

The Natural Gas Monthly highlights activities, events, and analyses of interest to public and private sector organizations associated with the natural gas industry. Volume and price data are presented each month for natural gas production, distribution, consumption, and interstate pipeline activities. Producer-related activities and underground storage data are also reported. From time to time, the Natural Gas Monthly features articles designed to assist readers in using and interpreting natural gas information.

Hiking Leisure

Directory of Open Access Journals (Sweden)

Rob Bongaardt

2016-12-01

Full Text Available This study explores how hiking trips in the forest afford two Norwegian families experiences of leisure during the trips. In situ interviews were analyzed using a descriptive phenomenological research method, which brackets theoretical or ideological assumptions during data collection and analysis. The results show that three levels of experience are interwoven. First, individual family members, parents as well as children, are immersed in the activities in their physical environment, which evokes positive bodily feelings. Second, interactions and dialogue between family members concerning actual events during the trip give rise to a sense of belonging and togetherness. Finally, the family creates a narrative about itself in the light of its own future as well as sociocultural expectations. We characterize this tapestry of experiences as an act of hiking leisure. We conclude that the experience of the hiking trip goes beyond a simple duality of a core versus balance activity theory and answers the call for research that incorporates the natural contexts in which leisure activities take place.

Superior Hiking Trail

Data.gov (United States)

Minnesota Department of Natural Resources — Superior Hiking Trail main trail, spurs, and camp spurs for completed trail throughout Cook, Lake, St. Louis and Carlton counties. These data were collected with...

Gas markets and pricing in Asia

International Nuclear Information System (INIS)

Mashayekhi, A.; Law, P.L.

1992-01-01

The issues of natural gas market development and pricing are reviewed within the context of specific Asian countries where gas plays an important role. Within Southeast Asia, Malaysia's Penninsular Gas Utilization project signals a new era in pipeline gas trade with an agreement to supply Singapore. There is now also an opportunity to extend Malaysian pipeline supplies to Thailand, which is actively seeking natural gas from neighboring countries. The prospects for LNG are dominated by the high growth markets of Japan, South Korea, and Taiwan. LNG trade has tended to bind the region together through close economic ties. Due to the increasing damand within the supplier countries themselves and their close neighbors, it is likely that LNG consumers will increasingly need to look beyond their traditional Southeast Asian suppliers in the future, perhaps to higher cost LNG schemes outside the region. In Southeast Asia, reduction of the high volumes of associated gas currently flared from the Bombay High Field in India will not only make big contribution to meeting the country's future gas demand, but will also prove environmentally beneficial. Pakistan, in order to control its developing gas markets, has raised gas prices to consumers substantially, with beneficial effects on supply and demand. In Bangladesh, economic pricing has been important in allocating gas resources efficiently. At both the regional and global level, the link between gas use and the environment is becoming stronger, raising the question of relating gas and energy prices to environmental costs and benefits

Natural gas market review 2008 - optimising investments and ensuring security in a high-priced environment

Energy Technology Data Exchange (ETDEWEB)

NONE

2008-09-18

Over the last 18 months, natural gas prices have continued to rise steadily in all IEA markets. What are the causes of this steady upward trend? Unprecedented oil and coal prices which have encouraged power generators to switch to gas, together with tight supplies, demand for gas in new markets and delayed investments all played a role. Investment uncertainties, cost increases and delays remain major concerns in most gas markets and are continuing to constitute a threat to long-term security of supply. A massive expansion in LNG production is expected in the short term to 2012, but the lag in LNG investment beyond 2012 is a concern for all gas users in both IEA and non-IEA markets. Despite this tight market context, regional markets continue on their way to globalisation. This tendency seems irreversible, and it impacts even the most independent markets. Price linkages and other interactions between markets are becoming more pronounced. This publication addresses these major developments, assessing investment in natural gas projects (LNG, pipelines, upstream), escalating costs, the activities of international oil and gas companies, and gas demand in the power sector. In addition, the publication includes data and forecasts on OECD and non-OECD regions to 2015 and in-depth reviews of five OECD countries and regions including the European Union. It also provides analysis of 34 non-OECD countries in South America, the Middle East, Africa, and Asia, including a detailed assessment of the outlook for gas in Russia, as well as insights on new technologies to deliver gas to markets.

Regulator preferences and utility prices: evidence from natural gas distribution utilities

International Nuclear Information System (INIS)

Klein, C.C.; Sweeney, G.H.

1999-01-01

We investigate the determinants of regulators' relative weighting of the social welfare of customer groups and utilities using panel data on natural gas distribution utilities in the US state of Tennessee. In contrast to previous empirical work on cross-sections of electric utilities, our results are statistically robust and consistent with the interest group theory of regulation. Intervention in rate cases, settlement vs. litigation of cases, and prices of alternative energy sources, as well as the size characteristics of customer groups and the firm, are significant determinants of the elasticity-weighted price-cost margin (Ramsey number) for each group. (Copyright (c) 1999 Elsevier Science B.V., Amsterdam. All rights reserved.)

International market integration for natural gas? A cointegration analysis of prices in Europe, North America and Japan

International Nuclear Information System (INIS)

Siliverstovs, Boriss; L'Hegaret, Guillaume; Neumann, Anne; Hirschlausen, Christian von

2005-01-01

This paper investigates the degree of integration of natural gas markets in Europe, North America and Japan in the time period between the early 1990s and 2004. The relationship between international gas market prices and their relation to the oil price are explored through principal components analysis and Johansen likelihood-based cointegration procedure. Both of them show a high level of natural gas market integration within Europe, between the European and Japanese markets as well as within the North American market. At the same time the obtained results suggest that the European (respectively, Japanese) and the North American markets were not integrated. (Author)

Gas-export potential will grow until domestic economies hike local demand

International Nuclear Information System (INIS)

Carson, M.; Stram, B.

1993-01-01

Prospects appear good for near-term growth of exportable natural-gas supplies for some member countries of the Commonwealth of Independent States (C.I.S.). These conclusions are a result of Enron Corp.'s recent investigations in the C.I.S. and other former Soviet republics. They are based on data obtained in cooperation with Vinigaz, the research arm of the Russian state gas concern Gazprom, and from various other research and consulting groups. These studies indicate that gas-export potential will grow as local demand for gas shrinks in the C.I.S. (as the energy needs of the individual republics decline during the period of economic transition) and while the C.I.S.-area countries continue to require foreign currency to help fund redevelopment and reduce debt. This concluding of two articles reviews the economic outlook for outside investment in the oil, gas, and gas-liquids infrastructure and the role of natural-gas supply and price in the development of domestic and export markets

Russian natural gas exports-Will Russian gas price reforms improve the European security of supply?

International Nuclear Information System (INIS)

Sagen, Eirik Lund; Tsygankova, Marina

2008-01-01

In this paper we use both theoretical and numerical tools to study potential effects on Russian gas exports from different Russian domestic gas prices and production capacities in 2015. We also investigate whether a fully competitive European gas market may provide incentives for Gazprom, the dominant Russian gas company, to change its export behaviour. Our main findings suggest that both increased domestic gas prices and sufficient production capacities are vital to maintain Gazprom's market share in Europe over the next decade. In fact, Russia may struggle to carry out its current long-term export commitments if domestic prices are sufficiently low. At the same time, if Russian prices approach European net-back levels, Gazprom may reduce exports in favour of a relatively more profitable domestic market

Fuel switching? Demand destruction? Gas market responses to price spikes

International Nuclear Information System (INIS)

Lippe, D.

2004-01-01

This presentation defined fuel switching and addressed the issue regarding which consumers have the capability to switch fuels. In response to short term price aberrations, consumers with fuel switching capabilities reduce their use of one fuel and increase consumption of an alternative fuel. For example, natural gas consumption by some consumers declines in response to price spikes relative to prices of alternative fuels. This presentation also addressed the issue of differentiating between fuel switching and demand destruction. It also demonstrated how to compare gas prices versus alternative fuel prices and how to determine when consumers will likely switch fuels. Price spikes have implications for long term trends in natural gas demand, supply/demand balances and prices. The power generating sector represents a particular class of gas consumers that reduce operating rates of gas fired plants and increase operating rates of other plants. Some gas consumers even shut down plants until gas prices declines and relative economies improve. Some practical considerations for fuel switching include storage tank capacity, domestic refinery production, winter heating season, and decline in working gas storage. tabs., figs

Oil and natural gas

International Nuclear Information System (INIS)

Riddell, C.H.

1993-01-01

The natural gas industry and market prospects in Canada are reviewed from a producer's point of view. In the first eight months of 1993, $2.3 billion in new equity was raised for natural gas exploration and production, compared to $900 million in 1991 and $1.2 billion in 1992. The number of wells drilled in the western Canada basin is expected to reach 8,000-9,000 in 1993, up from 5,600 in 1992, and Canadian producers' share of the North American natural gas market will probably reach 20% in 1993, up from 13% in 1986. Potential and proved gas supply in North America is ca 750 trillion ft 3 , of which ca 30% is in Canada. Factors affecting gas producers in Canada are the deregulated nature of the market, low costs for finding gas (finding costs in the western Canada basin are the lowest of any basin in North America), and the coming into balance of gas supply and demand. The former gas surplus has been reduced by expanding markets and by low prices which reduced the incentive to find new reserves. This surplus is largely gone, and prices have started rising although they are still lower than the pre-deregulation prices. Progress is continuing toward an integrated North American gas market in which a number of market hubs allow easy gas trading between producers and consumers. Commodity exchanges for hedging gas prices are beginning operation and electronic trading of gas contracts and pipeline capacity will also become a reality. 4 figs

Regulatory reform for natural gas pipelines: The effect on pipeline and distribution company share prices

Science.gov (United States)

Jurman, Elisabeth Antonie

1997-08-01

The natural gas shortages in the 1970s focused considerable attention on the federal government's role in altering energy consumption. For the natural gas industry these shortages eventually led to the passage of the Natural Gas Policy Act (NGPA) in 1978 as part of the National Energy Plan. A series of events in the decade of the 1980s has brought about the restructuring of interstate natural gas pipelines which have been transformed by regulators and the courts from monopolies into competitive entities. This transformation also changed their relationship with their downstream customers, the LDCs, who no longer had to deal with pipelines as the only merchants of gas. Regulatory reform made it possible for LDCs to buy directly from producers using the pipelines only for delivery of their purchases. This study tests for the existence of monopoly rents by analyzing the daily returns of natural gas pipeline and utility industry stock price data from 1982 to 1990, a period of regulatory reform for the natural gas industry. The study's main objective is to investigate the degree of empirical support for claims that regulatory reforms increase profits in the affected industry, as the normative theory of regulation expects, or decrease profits, as advocates of the positive theory of regulation believe. I also test Norton's theory of risk which predicts that systematic risk will increase for firms undergoing deregulation. Based on a sample of twelve natural gas pipelines, and 25 utilities an event study concept was employed to measure the impact of regulatory event announcements on daily natural gas pipeline or utility industry stock price data using a market model regression equation. The results of this study provide some evidence that regulatory reforms did not increase the profits of pipeline firms, confirming the expectations of those who claim that excess profits result from regulation and will disappear, once that protection is removed and the firms are operating in

Weak oil prices seen hindrance to pace of increase in gas use

International Nuclear Information System (INIS)

Anon.

1994-01-01

World demand for gas is expected to rocket, yet future natural gas and liquefied natural gas projects remain threatened by the link of gas prices to crude oil prices. This is the main message that emerged from the 19th World Gas Conference in Milan last week. A number of reports predicted regional demand for gas. All foresaw a rise. International Gas Union (IGU), organizer of the conference, and said world natural gas production has continued to rise despite a significant downturn in industrial production. The paper discusses gas demand in Europe, the correlation between oil and gas prices, the natural gas industry in Indonesia, Russia, and southern Europe

Who's making the money on natural gas prices ? What should government do? a CCPA-BC policy brief

International Nuclear Information System (INIS)

Wilson, F.

2001-01-01

The issue of rising oil and gas prices was discussed with reference to British Columbia's three gas distribution companies, BC Gas, Centra Gas, and Pacific Northern. Rising oil and gas prices have significant social and environmental implications and the public wants to know who is profiting and what the government should do about the problem. It was argued that the current prices mean huge profits for natural gas producers. This report listed the top 10 gas producers in British Columbia, along with their raw gas production and estimated profits. Another factor to be considered in this debate is that in the past decade, limited pipeline capacity meant that there was usually a surplus of gas to serve the Canadian market. This all changed with the addition of new pipelines and pipeline expansions, leading to price determination by local market conditions and direct competition with U.S. purchasers. It was suggested that the federal government should tax windfall oil and gas profits and direct the resulting revenues to rebates for low-income households and for energy conservation initiatives. It was also suggested that the trade rules regarding energy should be changed, with particular reference to the North American Free Trade Agreement (NAFTA) which tied Canada into a North American energy market in which U.S. demand sets prices in Canada. 2 tabs., 1 fig

Price cap regulation: the case of natural gas transport in the UK; La reglementation par price cap: le cas du transport de gaz naturel au Royaume Uni

Energy Technology Data Exchange (ETDEWEB)

David, L. [ATER, Paris-1 Univ., 75 (France)

1999-09-01

The transport and storage activities of British Gas company are controlled by a distinct organization named Transco. The access charges paid by the suppliers for the use of Transco's network are regulated by a price cap since October 1, 1994. However, Ofgas, the office of gas supply which is the regulation authority in charge of the control of competition and of British Gas activities, considers this control system as inefficient and has chosen a RPI (retail price index)-X (expected productivity factor)-type price cap for the control of gas transport tariffs. This has led to a disagreement between Transco and Ofgas which has delayed the implementation of the new system up to February 1998. This article compares the choices made by Ofgas for the control of gas transport tariffs with the economical theory. It recalls first, the reasons why the price cap appears as more efficient than the service cost regulation, the alternate method used by regulation authorities to control the tariffs of natural monopolies. Then, the difficulties linked with the implementation of the price cap for the transport of natural gas in the UK are analyzed in order to explain the reasons that led Ofgas to change its formula. Finally, the bases of an optimum hybrid formula are proposed. (J.S.)

Natural gas 1995: Issues and trends

Energy Technology Data Exchange (ETDEWEB)

NONE

1995-11-01

Natural Gas 1995: Issues and Trends addresses current issues affecting the natural gas industry and markets. Highlights of recent trends include: Natural gas wellhead prices generally declined throughout 1994 and for 1995 averages 22% below the year-earlier level; Seasonal patterns of natural gas production and wellhead prices have been significantly reduced during the past three year; Natural gas production rose 15% from 1985 through 1994, reaching 18.8 trillion cubic feet; Increasing amounts of natural gas have been imported; Since 1985, lower costs of producing and transporting natural gas have benefitted consumers; Consumers may see additional benefits as States examine regulatory changes aimed at increasing efficiency; and, The electric industry is being restructured in a fashion similar to the recent restructuring of the natural gas industry.

A framework for diagnosing the regional impacts of energy price policies. An application to natural gas deregulation

Energy Technology Data Exchange (ETDEWEB)

Bender, S.; Kalt, J.P.; Lee, H.

1986-03-01

Energy policy debates in the U.S. have frequently centered upon asserted regional effects. 'Consuming' regions are commonly pitted against 'producing' regions, with the latter purportedly gaining/losing at the expense of the former under higher/lower energy prices. Such simple views ignore regional trade linkages, the geographic distribution of ownership in energy using and producing firms, and the microeconomics of the incidence of energy price changes. This study presents a framework which incorporates these factors and allows assessment of the net regional income effects of changing energy prices. When applied to U.S. natural gas policy, the study's results indicate that the income effects of a rise in gas prices tend to be much more evenly spread than a naive assignment of increased costs and revenues to consuming and producing regions, respectively, would indicate. Under a number of plausible scenarios, in fact, it is likely that certain net gas consuming regions (e.g., the Pacific Northwest) have benefitted from the recent deregulation of U.S. gas prices. 14 refs. (A.V.)

Superior Hiking Trail Facilities

Data.gov (United States)

Minnesota Department of Natural Resources — Superior Hiking Trail main trail, spurs, and camp spurs for completed trail throughout Cook, Lake, St. Louis and Carlton counties. These data were collected with...

Natural gas price uncertainty and the cost-effectiveness of hedging against low hydropower revenues caused by drought

Science.gov (United States)

Kern, Jordan D.; Characklis, Gregory W.; Foster, Benjamin T.

2015-04-01

Prolonged periods of low reservoir inflows (droughts) significantly reduce a hydropower producer's ability to generate both electricity and revenues. Given the capital intensive nature of the electric power industry, this can impact hydropower producers' ability to pay down outstanding debt, leading to credit rating downgrades, higher interests rates on new debt, and ultimately, greater infrastructure costs. One potential tool for reducing the financial exposure of hydropower producers to drought is hydrologic index insurance, in particular, contracts structured to payout when streamflows drop below a specified level. An ongoing challenge in developing this type of insurance, however, is minimizing contracts' "basis risk," that is, the degree to which contract payouts deviate in timing and/or amount from actual damages experienced by policyholders. In this paper, we show that consideration of year-to-year changes in the value of hydropower (i.e., the cost of replacing it with an alternative energy source during droughts) is critical to reducing contract basis risk. In particular, we find that volatility in the price of natural gas, a key driver of peak electricity prices, can significantly degrade the performance of index insurance unless contracts are designed to explicitly consider natural gas prices when determining payouts. Results show that a combined index whose value is derived from both seasonal streamflows and the spot price of natural gas yields contracts that exhibit both lower basis risk and greater effectiveness in terms of reducing financial exposure.

Price formation and intertemporal arbitrage within a low-liquidity framework. Empirical evidence from European natural gas markets

Energy Technology Data Exchange (ETDEWEB)

Nick, Sebastian

2013-08-15

In this study, the informational efficiency of the European natural gas market is analyzed by empirically investigating price formation and arbitrage efficiency between spot and futures markets. Econometric approaches are specified that explicitly account for nonlinearities and the low liquidity framework of the considered gas hubs. The empirical results reveal that price discovery takes place on the futures market, while the spot price subsequently follows the futures market price. Furthermore, there is empirical evidence of significant market frictions hampering intertemporal arbitrage. UK's NBP seems to be the hub at which arbitrage opportunities are exhausted most efficiently, although there is convergence in the degree of intertemporal arbitrage efficiency over time at the hubs investigated.

Making sure natural gas gets to market

International Nuclear Information System (INIS)

Pleckaitis, A.

2004-01-01

The role of natural gas in power generation was discussed with reference to price implications and policy recommendations. New natural gas supply is not keeping pace with demand. Production is leveling out in traditional basins and industry investment is not adequate. In addition, energy deregulation is creating disconnects. This presentation included a map depicting the abundant natural gas reserves across North America. It was noted that at 2002 levels of domestic production, North America has approximately 80 years of natural gas. The AECO consensus wholesale natural gas price forecast is that natural gas prices in 2010 will be lower than today. The use of natural gas for power generation was outlined with reference to fuel switching, distributed generation, and central generation. It was emphasized that government, regulators and the energy industry must work together to address policy gaps and eliminate barriers to new investment. 13 figs

Profit, productivity, and price differential: an international performance comparison of the natural gas transportation industry

International Nuclear Information System (INIS)

Jeong-Dong Lee; Sung-Bae Park; Tai-Yoo Kim

1999-01-01

The objective of this paper is to evaluate the performance of natural gas transportation utilities, focusing on the three-key strategic performance measures of profit, productivity, and price differential. We propose a methodology that expresses the three performance measures in a unified single equation using the Edgeworth index. The proposed methodology is applied to an international comparison of the performance of 28 natural gas transportation utilities operating in eight countries in which the business environments differ greatly. The empirical results show the possible causes of performance differences and may shed some light on the direction of regulatory policy, especially for developing countries that have relatively short histories in the natural gas industry, such as Korea. (author)

Short-term outlook for natural gas and natural gas liquids to 2006 : an energy market assessment

International Nuclear Information System (INIS)

2005-10-01

In recent years, natural gas markets in North America have seen a close balance between supply and demand, resulting in high and volatile natural gas prices. The National Energy Board monitors the supply of all energy commodities in Canada along with the demand for Canadian energy commodities in domestic and export markets. This is the NEB's first energy market assessment report that presents a combined short-term analysis and outlook of natural gas and natural gas liquids (NGLs), such as ethane, propane and butane. It provides comprehensive information on the complexity of natural gas and NGL industries and highlights recent developments and topical issues. As a major producer of natural gas, western Canada has a correspondingly large natural gas processing capability that was developed specifically to extract NGLs. A world-scale petrochemical industry was developed in Alberta to convert NGLs into even higher valued products such as ethylene. Since NGLs in Canada are sourced mostly from natural gas, changes to the supply and demand for natural gas would impact NGL supply. This report addressed the issue of commodity prices with reference to crude oil, natural gas and NGL prices. Natural gas supply in terms of North American production and natural gas from coal (NGC) was also reviewed along with natural gas demand for residential and commercial heating, industrial use, power generation, and enhanced recovery for oil sand operations. There are about 692 gas plants in Canada that process raw natural gas into marketable gas and NGLs. Most are small field plants that process raw natural gas production to remove impurities such as sulphur, water and other contaminants. This report also discussed this infrastructure, with reference to field plants, straddle plants, pipelines, distribution and storage, including underground NGL storage. 3 tabs., 27 figs., 5 appendices

Asymmetric price responses, market integration and market power: A study of the U.S. natural gas market

International Nuclear Information System (INIS)

Murry, Donald; Zhu, Zhen

2008-01-01

We studied the market performance at selected, representative natural gas trading hubs in the U.S. and documented different price behaviors among various hubs. With NYMEX prices as the competitive benchmark, we found empirically that the spot price responses at some trading hubs were systematically asymmetric, thus demonstrating a market advantage by either buyers or sellers. We further found that the presence of market power was a very plausible explanation for this price behavior at some hubs. (author)

Papers of the 2. annual Canadian Institute conference on managing natural gas price volatility : effective risk strategies for turbulent times

International Nuclear Information System (INIS)

2002-01-01

The issue of how natural gas price volatility is affecting future energy projects was the focus of this conference. Discussions focused on the dynamics of supply and demand of natural gas in North America and how end-users are responding to price fluctuations. Methods by which storage can be used as an effective risk management tool was also on the agenda. The hedging strategies that work best for leading energy firms were described. It was noted that price volatility can be reduced through improved market transparency. Discussions also focused on credit risk in a volatile price environment. A total of 17 papers were presented of which 3 were indexed separately for inclusion in the database. tabs., figs

Petroleum and natural gas in Illinois

Energy Technology Data Exchange (ETDEWEB)

None

1979-01-01

Presentations made at the 7th Annual Illinois Energy Conference are compiled and reported. Specific topics include: Illinois petroleum and natural gas supply; energy use patterns for Illinois and the nation; impacts of the National Energy Act on the natural gas industry; natural gas for North America; natural gas supply under the Natural Gas Policy; US access to international oil; deregulation and its impact on the US petroleum supply; the US Energy Policy; petroleum pricing and taxation policies in Illinois; the high cost of energy and its impact on the poor; impact of increased fuel prices on Illinois' industrial future; energy prices and inflation; opportunities for energy conservation in transportaton; overview of energy and synfuels from biomass and wastes; an inventory of energy potential from biomass in Illinois; problems and potential of alcohol from agriculture; liquid and gaseous fuels from coal; and alternatives to liquid and gaseous fuels.

On the demand for natural gas in urban China

International Nuclear Information System (INIS)

Yu, Yihua; Zheng, Xinye; Han, Yi

2014-01-01

Using a set of unbalanced panel data for Chinese's cities during the period of 2006–2009, this study aims to estimate the price and income elasticities of residential demand for natural gas. Natural gas consumption is specified as a function of its own price; substitute prices; urban wages; and other supply, climate, and housing characteristics. Using a feasible generalised least squares (FGLS) technique, which controls for panel heteroskedasticity and panel correlation, we find that natural gas consumption is price elastic and income inelastic when other covariates (e.g., the supply of natural gas pipeline and heating degree days) are controlled. In addition, there are large variations in demand behaviours across China's regions. There is a substantial income effect on demand for natural gas in southern China, whereas the northern regions are found to have a higher price effect. In addition, the substitution effect between coal and natural gas is significant in North China but is not significant in South China. These findings have several important policy implications for natural gas pricing and supply cost analysis in the context of China. - Highlights: • We estimate the price and income elasticities of residential demand for natural gas. • We use a set of unbalanced panel data for Chinese's cities during 2006–2009. • We use a feasible generalised least squares approach. • We find that natural gas consumption is price elastic and income inelastic. • We find large variations in demand behaviours across China's regions

Rising natural gas and electricity prices in the Netherlands

International Nuclear Information System (INIS)

Roggen, M.

2004-01-01

In a free market, the price for electricity rises rather than falls. And as for the gas price, the consumer will be facing strong fluctuations. For that matter, it is only slightly connected with the liberalization of the market. An employee of Roland Berger Strategy Consultants has delved deeply into the matter, down to the euro [nl

Agricultural demands for natural gas and liquified petroleum gas in the USA

International Nuclear Information System (INIS)

Uri, N.D.; Gill, M.

1992-01-01

This study endeavours to determine whether farmers adjust their consumption of natural gas and liquefied petroleum gas in response to changes in the unit price of energy. A demand model is specified and estimated. The conclusions suggest that the unit price of natural gas (liquefied petroleum gas) is a factor impacting the quantity of natural gas (liquefied petroleum gas) demanded by farmers, but there is no indication that other types of energy are substitutes for natural gas or liquefied petroleum gas. Additionally, the number of acres irrigated is an important factor driving the demand for natural gas and liquefied petroleum gas. Finally, the estimated models of natural gas and liquefied petroleum gas demand were structurally stable over the period 1971-1989. (author)

The natural gas futures markets - is it still inefficient?

International Nuclear Information System (INIS)

Herbert, J.H.

1994-01-01

The natural gas futures market is fundamental to the current natural gas market both as means of price discovery and for price hedging. Thus, the informational efficiency of the futures market is an important issue. This article re-examines the informational efficiency of the natural gas futures market. In this re-examination several cash price series are considered. It is found that the natural gas futures market is informationally efficient for only one of the cash markets. The characteristics of the current natural gas market that might explain the estimated results are also discussed. (author)

Convergence of European spot market prices for natural gas. A Real-Time Analysis of market integration using the Kalman filter

International Nuclear Information System (INIS)

Siliverstovs, Boriss; Neumann, Anne

2005-01-01

This paper provides a textbook example of an econometric analysis of the integration between two commodity markets and the subsequent price convergence or absence thereof. We analyze price relations between spot markets for natural gas in Europe. The European market for natural gas is currently undergoing a liberalization process with the aim of creating a single, unified market. We use time-varying coefficient estimation models, applying the Kalman filter to test whether price convergence between different locations is really taking place. Our results reveal that the construction of a pipeline between the UK and Zeebrugge (Belgium) has lead to almost perfect price convergence between theses locations; on the other hand, liberalization on the European continent does not seem to be working so far. (Author)

Administration of the natural gas shortage in the USA

Energy Technology Data Exchange (ETDEWEB)

Pluge, W [Koeln Univ. (Germany, F.R.). Inst. fuer Energiewirtschaft

1978-05-01

The natural gas deficit is basically a consequence of the price policy of the U.S. government which keeps the prices of natural gas transported from one state to another subject to a maximum-price regulation. In the course of this development, the U.S. natural gas market has been characterized by three different types of shortage since the early seventies. There are regional differences in the administration of the shortage. Compared to the alternatives the rationing plan of the Federal Energy Regulatory Commission (FERC) is the best solution from on overall economic point of view, but it is rather impracticable and hard to put through completely. Natural gas rationing in the USA did not prevent temporary production losses and unemployment due to shortage. If the maximum-price regulation policy for natural gas is continued, the supply deficit for this energy carrier will become even greater. If, as the National Energy Plan proposes, the maximum-price regulation for natural gas would also pertain to the intrastate market in the future, natural gas shortages would occur there, too.

Norwegian Natural Gas. Liberalization of the European Gas Market

International Nuclear Information System (INIS)

Austvik, Ole Gunnar

2003-01-01

Leading abstract. This book focuses on issues that are important for Norway as a major gas exporter and to the development of a liberalized European market. Chapter 2 explains main features of the European gas market. Natural gas is sold in regional markets with independent pricing structure and particularities. In Europe, this has led to large investments for the producers and long-term contracts. The strong market growth and EU's actions to liberalize the market may change this. The organization of the Norwegian gas production and sale is discussed, as well as the reorganization taking place in 2001. Pricing mechanisms are discussed in Chapter 3, both in the ''old'' / existing structure and how a liberalization of the market may change price formation. The increased importance of energy taxation in EU countries is covered in Chapter 4. Even though natural gas is the most environmentally friendly of the fossil fuels, the use of natural gas may be taxed far harder in the future. The report discusses price effects of such a development. Chapter 5 discusses whether or not a gas producer, like Norway, necessarily must earn a resource rent. With the use of economic theory for exhaustible resources it is shown how prices to consumers may increase at the same time as prices to producers drop, where the difference is made up by higher gas taxes to the consuming countries. Transportation of natural gas involves considerable scale advantages and there are often scope advantages from production, storage and sale, as well. Chapter 6 discusses how competition and regulation may influence the functioning and social efficiency of the market, and the concentration of market power. When companies become large, they may exploit market power, supported by the authorities of their respective countries. Chapter 7 focuses on regulatory challenges for the EU, and how the transporters may change between conflicting and cooperation with the EU. Chapter 8 focuses on schedules for

European natural gas

International Nuclear Information System (INIS)

Thackeray, Fred

1999-11-01

Contains Executive Summary and Chapters on: Main issues; Natural gas consumption and supply: statistics and key features of individual countries; Sectoral natural gas consumption; Indigenous production; Imports; Prices and taxes; The spot market: The interconnector; Forecasts of production and consumption and contracted imports; Progress of markets liberalisation; Effects of environmentalist developments; Transmission networks and storage; Some principal players. (Author)

China's natural gas consumption and subsidies—From a sector perspective

International Nuclear Information System (INIS)

Wang, Ting; Lin, Boqiang

2014-01-01

China's natural gas consumption is growing rapidly and it has being driven by economic growth, industrialization and urbanization. In addition, the country's low-carbon development strategy, government-controlled gas price, and some other factors also contribute to the surging gas consumption. This paper studies China's natural gas consumption in residential, industrial and commercial sectors. We adopt the cointegration test and error correction model to study the relationships of explanatory factors and gas consumption of different sectors and climate factor is included into the analysis. In order to find the direction of natural gas pricing reform and establish the benchmark gas price, this paper also estimates the size of gas price subsidy by using price-gap approach. Our findings are as follows: In the long term, China's residential sector is more sensitive to price than the other two. Urbanization is an important factor promoting industrial and commercial gas consumption. Prices of other energies have an influence on natural gas consumption significantly due to the substitutability between energies. The slow-moving and unsatisfying pricing reforms on refined oil and natural gas lead to positive price elasticity of natural gas in the commercial sector, which implies that a further energy price reform is still stringent for China. - Highlights: • We figured out the price elasticity of different sectors. • We figured out the income elasticity of different sectors. • We introduced temperature factor into the study of natural gas consumption. • We study the natural gas subsidy of different sectors

Natural gas supply strategies for European energy market actors

International Nuclear Information System (INIS)

Girault, Vincent

2007-06-01

The liberalization of the European energy markets leads to the diversification of supplies. Hence, we analyse the natural gas importation problem in a power producer point of view. Upstream and downstream natural gas markets are concentrated. In this oligopoly context, our topic is to focus on strategies which modify natural gas sourcing price. This by studying the surplus sharing on the natural gas chain. A European firm can bundle gas and electricity outputs to increase its market share. Therefore, a bundling strategy of a power producer in competition with a natural gas reseller on the final European energy market increases upstream natural gas price. Bundling also acts as a raising rival cost strategy and reduces the rivals' profit. Profits opportunities incite natural gas producers to enter the final market. Vertical integration between a natural gas producer and a European gas reseller is a way, for producers, to catch end consumer surplus. Vertical integration results in the foreclosure of the power producer on the upstream natural gas market. To be active on the natural gas market, the power producer could supply bundles. But, this strategy reallocates the rent. The integrated firm on natural gas gets the rent of electricity market in expenses of the power producer. Then, a solution for the power producer is to supply gas and electricity as complements. Then, we consider a case where vertical integration is not allowed. Input price discrimination by a monopolist leads to a lower natural gas price for the actor which diversifies its supplying sources. Furthermore, a bundling strategy increases the gap between the price proposed to the firm which also diversify its output and the firm which is fully dependent from the producer to supply natural gas on final market. (author)

Partner Country Series: Developing a Natural Gas Trading Hub in Asia

Energy Technology Data Exchange (ETDEWEB)

NONE

2013-06-01

The trading of natural gas in the Asia-Pacific region is dominated by long-term contracts in which the price of gas is indexed to that of oil. As the price of gas between Asia and other parts of the world has widened in recent years, observers have raised serious doubts about the sustainability of this pricing model. In this report, the IEA shows what it would take to create a functional, regional natural-gas trading hub in which prices reflect the local supply and demand fundamentals. The report aims to provide stakeholders with insights on the changes that are required in the Asia-Pacific natural gas sector - both downstream and upstream - to allow a competitive natural gas price to emerge. Building on OECD Europe and OECD America experiences, this report sets out to assess perspectives for these changes in the Asia-Pacific natural gas markets. It identifies obstacles and opportunities for a competitive natural gas price in the Asian economies to emerge.

Alternative natural gas contract and pricing structures and incentives for the LNG industry

International Nuclear Information System (INIS)

Attanasi, E.D.

1991-01-01

Gas conversion to liquefied gas (LNG) and transport by LNG tankers is one option for meeting expanding gas consumption and for gas traded internationally. This paper examines the impact of the traditional gas contract provisions of indefinite pricing, market out price ceilings, and take-or-pay requirements on the profitability of LNG projects in the context of markets characterized by price and quantity uncertainty. Simulation of experiments are used to examine and calibrate the effects of those provisions. The results provide guidance to operators, host countries and purchasers in structuring such contracts. The paper also assesses prospects of future expansion of world LNG capacity. (author). 11 refs, 3 figs, 4 tabs

Natural gas monthly, August 1994

Energy Technology Data Exchange (ETDEWEB)

1994-08-24

The Natural Gas Monthly (NGM) highlights activities, events, and analyses of interest to public and private sector organizations associated with the natural gas industry. Volume and price data are presented each month for natural gas production, distribution, consumption, and interstate pipeline activities. Producer-related activities and underground storage data are also reported. From time to time, the NGM features articles designed to assist readers in using and interpreting natural gas information.

Natural gas monthly, November 1993

International Nuclear Information System (INIS)

1993-01-01

The Natural Gas Monthly (NGM) highlights activities, events, and analyses of interest to public and private sector organizations associated with the natural gas industry. Volume and price data are presented each month for natural gas production, distribution, consumption, and interstate pipeline activities. Producer-related activities and underground state data are also reported. From time to time, the NGM features articles designed to assist readers in using and interpreting natural gas information

Natural gas purchasing for cogeneration projects

International Nuclear Information System (INIS)

Kubacki, J. Jr.

1992-01-01

This paper reports on the primary cost component for most gas-fired cogeneration or on-site power projects, cost of natural gas. Often gas comprises 50 to 65% of total project costs over the life of the project. Thus it is very important to focus on natural gas sourcing, pricing, transportation and storage. This important task should not be blindly delegated to a gas supplier. The end user must develop a gas strategy that results in the most cost-effective burnertip price. Long-term natural gas supplies are usually source from the three major producing regions: Mod-Continent, Gulf Coast, and Western Canada. A well-reasoned gas strategy must include: determination of transportation and distribution options from the project site to potential gas sources (including direct interconnection of the project to interstate pipelines); acquisition of competitive gas bids from suppliers in appropriate regions; negotiation of potential discounts from interstate pipelines and local distribution companies (LDCs); fine-tuning project economics by, for example, using storage to maximize transportation load factor; and pricing mechanisms that meet economic parameters of the project. This paper uses a hypothetical project in the Midwest to examine the major factors in devising a cost-effective natural gas sourcing

On creating of a new pricing policy for natural gas in Bulgaria

International Nuclear Information System (INIS)

G'oshev, P.

1994-01-01

The joint venture company BULSOFGAS, representing the interests of SOFREGAS (France) and GAZSTROJMONTAZH (Bulgaria) have investigated in 1991 the natural gas usage in household sector in the towns of Montana and Blagoevgrad. The results received show the necessity of introducing a new pricing policy directed to different consumers' groups. The solving of this problem will contribute to: 1) creating possibilities for financing the projects, their realisation and motivation of users; 2) generating preconditions for setting up domestic corporations involved in organizing, financing and operation of urban gas supply networks; 3) more efficient and economically beneficial usage of energy sources at a significantly higher comfort. A special attention is paid to the government activities in this matter. (orig.)

Natural gas monthly, June 1998

Energy Technology Data Exchange (ETDEWEB)

NONE

1998-06-01

The Natural Gas Monthly (NGM) highlights activities, events, and analyses of interest to public and private sector organizations associated with the natural gas industry. Volume and price data are presented each month for natural gas production, distribution, consumption, and interstate pipeline activities. Producer-related activities and underground storage data are also reported. From time to time, the NGM features articles designed to assist readers in using and interpreting natural gas information. 6 figs., 27 tabs.

Natural gas monthly, October 1998

Energy Technology Data Exchange (ETDEWEB)

NONE

1998-10-01

The Natural Gas Monthly (NGM) highlights activities, events, and analyses of interest to public and private sector organizations associated with the natural gas industry. Volume and price data are presented each month for natural gas production, distribution, consumption, and interstate pipeline activities. Producer-related activities and underground storage data are also reported. From time to time, the NGM features articles designed to assist readers in using and interpreting natural gas information. 6 figs., 27 tabs.

Natural gas monthly, May 1999

Energy Technology Data Exchange (ETDEWEB)

NONE

1999-05-01

The Natural Gas Monthly (NGM) highlights activities, events, and analyses of interest to public and private sector organizations associated with the natural gas industry. Volume and price data are presented each month for natural gas production, distribution, consumption, and interstate pipeline activities. Producer-related activities and underground storage data are also reported. From time to time the NGM features articles designed to assist readers in using and interpreting natural gas information. 6 figs., 27 tabs.

Natural gas monthly, August 1995

Energy Technology Data Exchange (ETDEWEB)

NONE

1995-08-24

The Natural Gas Monthly (NGM) highlights activities, events, and analyses of interest to public and private sector organizations associated with the natural gas industry. Volume and price data are presented each month for natural gas production, distribution, consumption, and interstate pipeline activities. Producer-related activities and underground storage data are also reported. From time to time, the NGM features articles designed to assist readers in using and interpreting natural gas information. This month`s feature article is on US Natural Gas Imports and Exports 1994.

Natural gas monthly, May 1997

Energy Technology Data Exchange (ETDEWEB)

NONE

1997-05-01

The Natural Gas Monthly highlights activities, events, and analyses of interest to public and private sector organizations associated with the natural gas industry. Volume and price data are presented each month for natural gas production, distribution, consumption, and interstate pipeline activities. Producer-related activities and underground storage data are also reported. From time to time, the NGM features articles designed to assist readers in using and interpreting natural gas information. The feature article this month is ``Restructuring energy industries: Lessons from natural gas.`` 6 figs., 26 tabs.

Evaluation of forward sales and options created through natural gas storage

International Nuclear Information System (INIS)

Salahor, G.S.; Laughton, D.G.

1994-01-01

The deregulation of natural gas markets in North America has resulted in greater quantities of gas being sold under indexed price agreements. As this is occurring, natural gas storage facilities are being developed and opened up for the use of natural gas producers and marketers. While natural gas spot prices continue to exhibit some strong seasonality reflecting higher demand peak in winter, traded futures contract prices tend to discount the expected market price. The elements which contribute to this differential are examined and some of the possible opportunities for the use of gas storage in tandem with other risk management instruments are demonstrated. The specific scenario to be evaluated takes the viewpoint of a natural gas producer considering the storage and later withdrawal of gas to take some advantage of an anticipated seasonal and/or secular price increase, with the objective of locking in future prices for current production. Gas would be stored in a low season and later withdrawn and sold, with the price covered by a futures contract or by a dynamic hedging strategy. The expected returns from a natural gas storage/withdrawal scheme are analyzed and the implications of market volatility, price of risk, the local cost of storage, and observations regarding the convenience yield (a difference between the current spot market price and futures market price for future periods) are presented. Analysis of gas storage proposals of specific duration is included as well as evaluation of potential put options created when the storage duration is not fixed. 6 refs., 4 figs., 4 tabs

Natural gas monthly, April 1999

Energy Technology Data Exchange (ETDEWEB)

NONE

1999-05-06

The Natural Gas Monthly (NGM) highlights activities, events, and analyses of interest to public and private sector organizations associated with the natural gas industry. Volume and price data are presented each month for natural gas production, distribution, consumption, and interstate pipeline activities. Producer-related activities and underground storage data are also reported. From time to time, the NGM features articles designed to assist readers in using and interpreting natural gas information. There are two feature articles in this issue: Natural gas 1998: Issues and trends, Executive summary; and Special report: Natural gas 1998: A preliminary summary. 6 figs., 28 tabs.

Natural gas and crude oil

International Nuclear Information System (INIS)

Valais, M.R.

1991-01-01

Two main development could gradually modify these traditional features of natural gas markets and prices. First, environmental pressures and the tightening of emission standards and of the quality specifications for fuels should work in favor of natural gas. Second the increasing distance of resources in relation to the major consuming zones should bring about a considerable development of international natural gas trade. International expansion should mark the development of the gas industry in the coming decades. This evolution will give natural gas an importance and a role appreciably closer to those of oil on the world energy scene. But it is obvious that such a development can come about only at the cost of considerable investments for which the economic viability is and will remain dependent on the level of the prices of natural gas as the inlet to its consuming markets. This paper attempts to answer the questions: Will these markets accept a new scale of value for gas in relation to other fossil fuels, including oil, which will take into account new environmental constraints and which will be able to fulfill the formidable financial needs of the gas industry in the coming decades?

Energy prices, volatility, and the stock market. Evidence from the Eurozone

International Nuclear Information System (INIS)

Oberndorfer, Ulrich

2009-01-01

This paper constitutes a first analysis on stock returns of energy corporations from the Eurozone. It focuses on the relationship between energy market developments and the pricing of European energy stocks. According to our results, oil price hikes negatively impact on stock returns of European utilities. However, they lead to an appreciation of oil and gas stocks. Interestingly, forecastable oil market volatility negatively affects European oil and gas stocks, implying profit opportunities for strategic investors. In contrast, the gas market does not play a role for the pricing of Eurozone energy stocks. Coal price developments affect the stock returns of European utilities. However, this effect is small compared to oil price impacts, although oil is barely used for electricity generation in Europe. This suggests that for the European stock market, the oil price is the main indicator for energy price developments as a whole. (author)

Natural gas : a critical component of Ontario's electricity future

International Nuclear Information System (INIS)

Pleckaitis, A.

2004-01-01

This PowerPoint presentation identified natural gas as part of the electricity solution. It reviewed price implications and policy recommendations. New natural gas supply is not keeping pace with demand. Production is leveling out in traditional basins and industry investment is not adequate. In addition, energy deregulation is creating disconnects. This presentation included a map depicting the abundant natural gas reserves across North America. It was noted that at 2002 levels of domestic production, North America has approximately 80 years of natural gas. The AECO consensus wholesale natural gas price forecast is that natural gas prices in 2010 will be lower than today. The use of natural gas for power generation was outlined with reference to fuel switching, distributed generation, and central generation. It was emphasized that government, regulators and the energy industry must work together to address policy gaps and eliminate barriers to new investment. tabs., figs

Natural gas monthly, June 1994

Energy Technology Data Exchange (ETDEWEB)

1994-06-01

The Natural Gas Monthly (NGM) highlights activities, events, and analyses of interest to public and private sector organizations associated with the natural gas industry. Volume and price data are presented each month for natural gas production, distribution, consumption, and interstate pipeline activities. Producer-related activities and underground storage data are also reported. From time to time, the NGM features articles designed to assist readers in using and interpreting natural gas information. The feature article this month is the executive summary from Natural Gas 1994: Issues and Trends. 6 figs., 31 tabs.

India expanding oil/gas E and D, infrastructure

International Nuclear Information System (INIS)

Anon.

1991-01-01

This paper reports that India continues to press oil and gas exploration and development and expansion of its petroleum sector infrastructure. One of the key moves is the government's decision to stage a fourth exploration bidding round, its most ambitious to date and one expected to elicit enthusiasm from international oil companies. At the same time, state oil companies Oil and Natural Gas Commission and Oil India Ltd. plan to maintain strong domestic E and D programs. ONGC is seeking more revenue to sustain India's ambitious oil and gas upstream plans. The state company has asked the government for a 50% hike in the price of domestic crude. The government currently pays ONGC and OIL only about $8.84/bbl, a price fixed in 1981. A jump of 50% in the domestic crude price would net ONGC another $1 billion/year in revenues, ONGC Chairman S.L. Khosla the. The government and other state companies also continue efforts to expand gas utilization and markets and match refining plans with market needs

Natural gas monthly, August 1993

Energy Technology Data Exchange (ETDEWEB)

1993-08-25

The Natural Gas Monthly (NGM) is prepared in the Data Operations Branch of the Reserves and Natural Gas Division, Office of Oil and Gas, Energy Information Administration (EIA), US Department of Energy (DOE). The NGM highhghts activities, events, and analyses of interest to public and private sector organizations associated with the natural gas industry. Volume and price data are presented each month for natural gas production, distribution, consumption, and interstate pipeline activities. Producer-related activities and underground storage data are also reported. From time to time, the NGM features articles designed to assist readers in using and interpreting natural gas information.

Natural gas prices in Italy. Tariffs geographical distribution; Metano. Paese che vai, prezzo che trovi

Energy Technology Data Exchange (ETDEWEB)

Marrocchelli, A. [ENEA, Rome (Italy). Centro Ricerche Casaccia

2000-11-01

The annual report on services and activity carries at some evaluations of data concerned the natural gas market: total consumption, costs and prices in Italy and comparative evaluations with other european countries. [Italian] La relazione annuale sullo stato dei servizi e sull'attivita' svolta, presentata dal Presidente dell'Autorita' per l'energia elettrica e il gas, porta ad alcune considerazioni sui dati che riguardano il mercato del gas naturale: i consumi totali, i costi e i prezzi in Italia, il confronto con i costi e i prezzi praticati negli altri paesi europei.

Natural gas monthly, February 1994

Energy Technology Data Exchange (ETDEWEB)

1994-02-25

The NGM highlights activities, events, and analyses of interest to public and private sector organizations associated with the natural gas industry. Volume and price data are presented each month for natural gas production, distribution, consumption, and interstate pipeline activities. Producer-related activities and underground storage data are also reported. The NGM also features articles designed to assist readers in using and interpreting natural gas information.

Gas pricing in developing countries: A case study of Pakistan

International Nuclear Information System (INIS)

Sohail, H.M.; Abid, M.S.; Ansari, A.M.

1994-01-01

Pakistan, a developing country, has gone through various phases of formulating gas pricing policies during its 40-year history of natural gas production and consumption. This paper identifies critical factors that influenced gas pricing policies in Pakistan and adverse effects experienced when any of these factors was not given proper consideration. For instance, on the producer's side, discounted pricing formulas discouraged further exploration and development, leaving high-potential areas unexplored and discovered fields dormant for more than a decade. On the consumer's side, subsidized gas prices encouraged consumption to rise steeply without new discoveries to offset additional surplus consumption. The paper also discusses various short- and long-term variables that should go into a gas pricing policy for developing countries. References to recent policies are also given, indicating how these variables were incorporated in real terms. The conclusions and recommendations, based on Pakistan's long experience with the gas industry, should be useful for other oil-importing countries rich in indigenous gas resources

North American natural gas pipeline and supply update

International Nuclear Information System (INIS)

Molyneaux, M.

1999-01-01

A series of overhead viewgraphs accompanied this presentation which presented an update of North American natural gas supply. Some of the graphs depicted the following: (1) natural gas consumption in the United States, (2) U.S. imports of Canadian natural gas, (3) natural gas prices differential: Henry Hub versus Empress, (4) natural gas production in the U.S., and (5) Baker Hughes active rig count, U.S. gas rigs. First Energy's view of U.S. natural gas supply is that the estimate of 50.0 Bcf/d for U.S. domestic production is looking too high. The first quarter 1999 exit production rates are behind expectations. U.S. domestic natural gas expenditure budgets are still down by more than 40 per cent compared to 1998 levels. The impact that this will have on prices was discussed. 21 figs

Market development in the natural gas market

International Nuclear Information System (INIS)

Kuenneke, R.W.; Arentsen, M.J.; Manders, A.M.P.; Plettenburg, L.A.

1998-01-01

Options for the liberalization of the Dutch natural gas market have been investigated. Three models are compared and assessed for the impacts on the economic performance, the national interests and the so-called public tasks. The results of the report can be used to base the proposals for a new Natural Gas Act, which is expected to be sent to the Dutch parliament in the spring of 1999. The three liberalization models are specified according to the different phases in the industrial column of natural gas. Except for transport (limited possibilities) and distribution (monopolistic character and thus not suitable for market development), market development is possible in all the phases of the column. The models are the cooperation model (equal position for the natural gas trade company Gasunie and the natural gas distribution companies, and management of the natural gas infrastructure and the Dutch gas reserves by means of mutual tuning, cooperation and coordination), the EZ-model (price mechanism for the tariffs for natural gas, and access to the natural gas network through negotiated third party access (TPA) with indicative prices and conditions), and the market model (optimal use of market development options to stimulate the economic performance, introduction of price mechanism options, access through regulated TPA with tariffs, based on long-term marginal costs, role of the government limited to a favorable policy with respect to access to the network, competition and security of the interests which arise from the exploitation of the Dutch natural gas fields). 26 refs

Measuring and testing natural gas and electricity markets volatility : evidence from Alberta's deregulated markets

International Nuclear Information System (INIS)

Serletis, A.; Shahmoradi, A.

2005-01-01

A number of innovative methods for modelling spot wholesale electricity prices have recently been developed. However, these models have primarily used a univariate time series approach to the analysis of electricity prices. This paper specified and estimated a multivariate GARCH-M model of natural gas and electricity price changes and their volatilities, using data over the deregulated period between January 1996 to November 2004 from Alberta's spot power and natural gas markets. The primary objective of the model was to investigate the relationship between electricity and natural gas prices. It was noted that the model allows for the possibilities of spillovers and asymmetries in the variance-covariance structure for natural gas and electricity price changes, and also for the separate examination of the effects of the volatility of anticipated and unanticipated changes in natural gas and electricity prices. Section 2 of the paper provided a description of the model used to test for causality between natural gas and electricity price changes, while section 3 discussed the data and presented the empirical results. It was concluded that there is a bidirectional causality between natural gas and electricity price changes. However, neither anticipated nor unanticipated natural gas price volatility causes electricity price changes. Anticipated electricity price volatility has a causal effect on natural gas. 10 refs., 2 tabs., 3 figs

Natural gas 1992: Issues and trends

International Nuclear Information System (INIS)

1993-03-01

This report provides an overview of the natural gas industry in 1991 and 1992, focusing on trends in production, consumption, and pricing of natural gas and how they reflect the regulatory and legislative changes of the past decade (Chapter 1). Also presented are details of FERC Order 636 and the Energy Policy Act of 1992, as well as pertinent provisions of the Clean Air Act Amendments of 1990 (Chapter 2). In addition, the report highlights a range of issues affecting the industry, including: Trends in wellhead prices and natural gas supply activities (Chapter 3); Recent rate design changes for interstate pipeline companies (Chapter 4); Benefits to consumers from the more competitive marketplace (Chapter 5); Pipeline capacity expansions during the past 2 years (Chapter 6); Increasing role of the natural gas futures market (Chapter 7)

Alaska gas pipeline and the global natural gas market

International Nuclear Information System (INIS)

Slutz, J.

2006-01-01

The global natural gas market was discussed in relation to the Alaska natural gas pipeline project. Natural gas supply forecasts to the year 2025 were presented. Details of the global liquefied natural gas (LNG) market were discussed. Charts were included for United States natural gas production, consumption, and net imports up to the year 2030. The impact of high natural gas prices on the manufacturing sector and the chemicals industry, agricultural, and ethanol industries were discussed. Natural gas costs around the world were also reviewed. The LNG global market was discussed. A chart of world gas reserves was presented, and global LNG facilities were outlined. Issues related to the globalization of the natural gas trade were discussed. Natural gas imports and exports in the global natural gas market were reviewed. A chart of historical annual United States annual LNG imports was presented. tabs., figs

Forecasting natural gas supply in China: Production peak and import trends

International Nuclear Information System (INIS)

Lin Boqiang; Wang Ting

2012-01-01

China's natural gas consumption has increased rapidly in recent years making China a net gas importer. As a nonrenewable energy, the gas resource is exhaustible. Based on the forecast of this article, China's gas production peak is likely to approach in 2022. However, China is currently in the industrialization and urbanization stage, and its natural gas consumption will persistently increase. With China's gas production peak, China will have to face a massive expansion in gas imports. As the largest developing country, China's massive imports of gas will have an effect on the international gas market. In addition, as China's natural gas price is still controlled by the government and has remained at a low level, the massive imports of higher priced gas will exert great pressure on China's gas price reform. - Highlights: ► We figured out the natural gas production peak of China. ► We predict the import trends of natural gas of China. ► We study the international and national impacts of China's increasing import of gas. ► It is important for China to accelerate price reformation of natural gas.

Modeling and forecasting natural gas demand in Bangladesh

International Nuclear Information System (INIS)

Wadud, Zia; Dey, Himadri S.; Kabir, Md. Ashfanoor; Khan, Shahidul I.

2011-01-01

Natural gas is the major indigenous source of energy in Bangladesh and accounts for almost one-half of all primary energy used in the country. Per capita and total energy use in Bangladesh is still very small, and it is important to understand how energy, and natural gas demand will evolve in the future. We develop a dynamic econometric model to understand the natural gas demand in Bangladesh, both in the national level, and also for a few sub-sectors. Our demand model shows large long run income elasticity - around 1.5 - for aggregate demand for natural gas. Forecasts into the future also show a larger demand in the future than predicted by various national and multilateral organizations. Even then, it is possible that our forecasts could still be at the lower end of the future energy demand. Price response was statistically not different from zero, indicating that prices are possibly too low and that there is a large suppressed demand for natural gas in the country. - Highlights: → Natural gas demand is modeled using dynamic econometric methods, first of its kind in Bangladesh. → Income elasticity for aggregate natural gas demand in Bangladesh is large-around 1.5. → Demand is price insensitive, indicating too low prices and/or presence of large suppressed demand. → Demand forecasts reveal large divergence from previous estimates, which is important for planning. → Attempts to model demand for end-use sectors were successful only for the industrial sector.

Modeling and forecasting natural gas demand in Bangladesh

Energy Technology Data Exchange (ETDEWEB)

Wadud, Zia, E-mail: ziawadud@yahoo.com [Bangladesh University of Engineering and Technology (Bangladesh); Dey, Himadri S. [University of Notre Dame (United States); Kabir, Md. Ashfanoor; Khan, Shahidul I. [Bangladesh University of Engineering and Technology (Bangladesh)

2011-11-15

Natural gas is the major indigenous source of energy in Bangladesh and accounts for almost one-half of all primary energy used in the country. Per capita and total energy use in Bangladesh is still very small, and it is important to understand how energy, and natural gas demand will evolve in the future. We develop a dynamic econometric model to understand the natural gas demand in Bangladesh, both in the national level, and also for a few sub-sectors. Our demand model shows large long run income elasticity - around 1.5 - for aggregate demand for natural gas. Forecasts into the future also show a larger demand in the future than predicted by various national and multilateral organizations. Even then, it is possible that our forecasts could still be at the lower end of the future energy demand. Price response was statistically not different from zero, indicating that prices are possibly too low and that there is a large suppressed demand for natural gas in the country. - Highlights: > Natural gas demand is modeled using dynamic econometric methods, first of its kind in Bangladesh. > Income elasticity for aggregate natural gas demand in Bangladesh is large-around 1.5. > Demand is price insensitive, indicating too low prices and/or presence of large suppressed demand. > Demand forecasts reveal large divergence from previous estimates, which is important for planning. > Attempts to model demand for end-use sectors were successful only for the industrial sector.

Natural gas monthly, December 1996

Energy Technology Data Exchange (ETDEWEB)

NONE

1996-12-01

This document highlights activities, events, and analysis of interest to the public and private sector associated with the natural gas industry. Volume and price data are presented each month for natural gas production, distribution, consumption, and interstate pipeline activities. Producer-related activities and underground storage data are also included.

Natural Gas Versus Nuclear New Build Versus Life Extension

International Nuclear Information System (INIS)

Barron, B.

2013-01-01

Proven natural gas reserves and production in the USA have continued to increase in recent years. This is due to the exploration of shale formations and the expanded use of hydraulic fracking technology. Looking forward, we can expect that high crude oil prices will sustain natural gas production at current levels (approximately 25% of natural gas production in the USA is a by-product of crude oil drilling), and the natural gas liquid cuts are priced with crude oil. Continued drilling in the near term for natural gas is required by lease obligations and by commitments to investors

Gas and electricity price in the European Union in 2011

International Nuclear Information System (INIS)

Martin, Jean-Philippe

2012-11-01

This document indicates and comments the evolution of gas and electricity prices in the different countries of the European Union. As far as natural gas is concerned, it outlines that taxes on gas are higher in Nordic countries, and that prices are increasing everywhere (for industry as well as for households). As far as electricity is concerned, price is rather cheap in France compared to the other countries. Graphs indicate the evolution of electricity prices between 2010 and 2011 in the different countries for industry and households. Even if a decrease has been noticed in some countries, the general trend is to an increase (between 5 and 10% in average)

Sustainability and energy security : the squeeze on natural gas

International Nuclear Information System (INIS)

Hoover, G.; Howatson, A.; Parmenter, R.

2004-01-01

This paper outlines the impact of environmental policy on natural gas demand and describes alternative energy sources such as wind, solar, biomass and clean coal that can increase energy supplies. This briefing also establishes the short-, medium-, and long-term consequences of current natural gas realities. It also outlines the driving forces in Canada and the United States behind the demand for natural gas. The impact of policy formation and the phase-out of coal in Ontario are addressed along with natural gas supply prospects and the prospects and obstacles for riskier incremental supplies such as liquefied natural gas, natural gas from coal, and frontier natural gas. It was concluded that strong demand and tight supply are the factors that have driven up natural gas prices. Continued high natural gas prices in the short term will likely motivate conservation strategies at the personal household level as well as in the business and industrial sectors. Although wind power is seen as a clean, competitively prices alternative to natural gas-fired electricity generation, its contribution is not expected to change the supply and demand equilibrium. Initiatives such as the Mackenzie Valley Pipeline, the Alaskan Pipeline and drilling in the Atlantic may help balance natural gas supply and demand in the mid-term. 44 refs., 2 tabs., 7 figs

Preliminary report on the commercial viability of gas production from natural gas hydrates

Science.gov (United States)

Walsh, M.R.; Hancock, S.H.; Wilson, S.J.; Patil, S.L.; Moridis, G.J.; Boswell, R.; Collett, T.S.; Koh, C.A.; Sloan, E.D.

2009-01-01

Economic studies on simulated gas hydrate reservoirs have been compiled to estimate the price of natural gas that may lead to economically viable production from the most promising gas hydrate accumulations. As a first estimate, $CDN2005 12/Mscf is the lowest gas price that would allow economically viable production from gas hydrates in the absence of associated free gas, while an underlying gas deposit will reduce the viability price estimate to $CDN2005 7.50/Mscf. Results from a recent analysis of the simulated production of natural gas from marine hydrate deposits are also considered in this report; on an IROR basis, it is $US2008 3.50-4.00/Mscf more expensive to produce marine hydrates than conventional marine gas assuming the existence of sufficiently large marine hydrate accumulations. While these prices represent the best available estimates, the economic evaluation of a specific project is highly dependent on the producibility of the target zone, the amount of gas in place, the associated geologic and depositional environment, existing pipeline infrastructure, and local tariffs and taxes. ?? 2009 Elsevier B.V.

A state regulator's perspective on the natural gas industry

International Nuclear Information System (INIS)

Heintz, F.O.

1992-01-01

This paper reviews the history of the natural gas distribution industry and the role of state regulation in controlling pricing and supply. The paper discusses the results of national policies such as the Fuel Use Act and the subsequent Natural Gas Policy Act. It then discusses the resulting market and prices resulting from both regulation and deregulation of the natural gas industry. The paper goes on to discuss the market potential for natural gas and the reliability of this fuel source for future demand

Has the natural gas fueled bus any future?

International Nuclear Information System (INIS)

Riikonen, A.

2001-01-01

Helsinki City Transport has decided to operate public transport in the center of the city with tramways and gas-fuelled busses. The decision is that there will be about 100 natural gas fueled busses in Helsinki by the year 2003. European exhaust gas emission (NO x and particulates) regulations have tightened strongly during the past few years. The regulations have forced to search for new fuels by the side of development of diesel engines. Alcohols, in spite of favourable fuel properties, are too expensive, so the use of them needs large subsidies for transportation sector. Gaseous fuels, both LPG and natural gas are suitable fuels for Otto cycle-cycle engines. After the previous oil crisis the interest in gas-fuelled engines has steadily decreased, but at present it is increasing again because of the objectives to decrease emissions of heavy vehicles at the level of gasoline-fuelled vehicles, equipped with three-way catalyst. From the point of view of emissions natural gas and LPG are seen as equivalent alternatives. The price of LPG varies on the basis of demand and on the basis of the prices of other oil products. Refuelling of a vehicle and storage of LPG in liquid form in the tank of the vehicle is easier than refuelling and fuel storage of natural gas. Investments to refuelling equipment of LPG are only 20% of those of the natural gas refuelling systems. The problem of natural gas is also the fact that is not easy to carry in the vehicle. Even if natural gas is compressed to pressure of 200 bars, it requires six times larger tanks if the refuelling intervals are the same. Liquefaction of natural gas reduces the volume significantly, but this is complicated and hence expensive. The tank of a vehicle should be vacuum insulated because the temperature of the LNG is about 160 deg C. Tank volume of LPG is only about twice that of diesel oil. Safety of natural gas is high, because it is lighter than the air, nearly a half of the density of the air. Octane ratings

Canadian natural gas : review of 2007/08 and outlook to 2020

International Nuclear Information System (INIS)

2008-12-01

This report discussed natural gas industry trends in Canada and the United States. An overview of the current state of the North American natural gas market was provided in addition to a historical record of 2007. Recent natural gas market dynamics related to supply and demand were evaluated using statistical data from the National Energy Board (NEB); the United States Energy Information Administration (EIA); and Statistics Canada. Natural gas consumed by oil sands producers represented 412 billion cubic feet. The data indicated that major changes are now occurring in the North American gas market. While Canadian gas production has declined, unconventional gas development will result in higher Canadian production levels. Producers are now paying higher prices for shale prospective land in British Columbia (BC). Natural gas prices have dropped significantly as a result of the volatility of crude oil prices. North American storage volumes have also fallen from 3.5 Tcf to 3.3 Tcf. Net exports in 2007 represented 56 per cent of the total gas produced in Canada. Liquefied natural gas (LNG) supplies will moderate the price of natural gas in the future. It was concluded that new regulation and policies must not impede the sustainable development of natural gas supplies. 12 refs., 5 tabs., 32 figs

Western Pacific liquefied natural gas

International Nuclear Information System (INIS)

Woronuk, R.

2004-01-01

WestPac Terminals Inc. has expertise in natural gas supply and demand, transportation, liquefied natural gas (LNG) and economic optimization. This presentation addressed issues facing their proposed construction of an LNG terminal and associated facilities on the west coast of Canada. It presented pie charts comparing world gas reserves with production. NPC gas price projects and WestPac gas cost estimates were also presented. It was noted that an unprecedented growth in LNG imports to North America is essential and that LNG will be the lowest price major source of natural gas supply. Maps illustrating LNG sources and receiving terminals were also presented along with solutions to the not-in-my-back-yard (NIMBY) syndrome. Solutions include selecting locations where communities are pro-development, where LNG terminals can provide direct financial benefits to the community, and using existing infrastructure to minimize socio-economic impacts. The advantages of developing LNG to Prince Rupert were discussed in terms of serving energy markets, direct provincial benefits, and LNG/power generation synergies. figs

The economics of natural gas

International Nuclear Information System (INIS)

Julius, D.; Mashayekhi, A.

1990-01-01

Natural gas resembles oil in fulfilling a wide variety of uses as both a source of energy and a feedstock, but the proportion of world production that is traded internationally is very much lower, and insufficient for a world price of gas to be established. Written specifically for economists interested in energy, development and industrial economics; oil and gas industry personnel; officials of developing countries; and intergovernmental organizations concerned with development. This book addresses the issues of how the economic price of gas is determined within individual countries with different characteristics and which factors should be taken into account by governments in the formulation of pricing policies that are appropriate for gas. These are illustrated with estimates of the costs of exploration and production of gas, and of the benefits to be derived from its use in various economic sectors for a number of Third World countries. The book also presents a detailed case study of the development of gas pricing in Bangladesh, and an analytical framework for the development of a formal gas planning model that could be applied to the cases of actual countries contemplating the development of gas use in the future

Natural Gas Extraction, Earthquakes and House Prices

OpenAIRE

Hans R.A. Koster; Jos N. van Ommeren

2015-01-01

The production of natural gas is strongly increasing around the world. Long-run negative external effects of extraction are understudied and often ignored in social) cost-benefit analyses. One important example is that natural gas extraction leads to soil subsidence and subsequent induced earthquakes that may occur only after a couple of decades. We show that induced earthquakes that are noticeable to residents generate substantial non-monetary economic effects, as measured by their effects o...

An analysis of price competitiveness of CNG (compressed natural gas) versus gasoline: estimation of the elasticities of demand by CNG in a recent period in Brazil; Uma analise da competitividade de preco do GNV (Gas Natural Veicular) frente a gasolina: estimacao das elasticidades da demanda por GNV no Brasil no periodo recente

Energy Technology Data Exchange (ETDEWEB)

Iootty, Mariana; Pinto Junior, Helder; Roppa, Bruna; Biasi, Guilherme de [Universidade Federal do Rio de Janeiro (UFRJ), RJ (Brazil). Inst. de Economia

2004-07-01

One of the main determinants to the expansion of natural gas on the Brazilian domestic market is its price. Hence, it is important to analyze the price competitiveness of natural gas vis-a-vis its competitors. The current paper focuses on the market of natural gas in vehicles (the compressed natural gas - CNG), and uses co-integration techniques to estimate the price-elasticity of CNG, the cross-elasticity of CNG and gasoline, and the income-elasticity. The results suggest that price is a relevant factor in the long-run, while in the short-run income is the most significant determinant of the demand variation. In addition, the paper also shows an imperfect substitutability between CNG and gasoline. (author)

Gas prices: realities and probabilities

International Nuclear Information System (INIS)

Broadfoot, M.

2000-01-01

An assessment of price trends suggests continuing rise in 2001, with some easing of upward price movement in 2002 and 2003. Storage levels as of Nov. 1, 2000 are expected to be at 2.77 Tcf, but if the winter of 2000/2001 proves to be more severe than usual, inventory levels could sink as low as 500 Bcf by April 1, 2001. With increasing demand for natural gas for non-utility electric power generation the major challenge will be to achieve significant supply growth, which means increased developmental drilling and inventory draw-downs, as well as more exploratory drilling in deepwater and frontier regions. Absence of a significant supply response by next summer will affect both growth in demand and in price levels, and the increased demand for electric generation in the summer will create a flatter consumption profile, erasing the traditional summer/winter spread in consumption, further intensifying price volatility. Managing price fluctuations is the second biggest challenge (after potential supply problems) facing the industry

Golden age: marketers extract the most from oil and natural gas trade

Energy Technology Data Exchange (ETDEWEB)

Lorenz, A.

2000-04-01

The complexity of the oil and natural gas markets, the complex factors which interact to produce the price of oil or natural gas on any given day, and the role of marketers in this high stakes game are discussed. While oil and natural gas prices are very good today compared to the low prices through much of the 1990s, marketers are now concerned about the ability of Canadian fields to produce enough to fill the expanded pipelines and meet the rising demand. As the oil and natural gas industry in Canada is moving from a pipeline-constrained environment to a resource-constrained environment, the question of declining reserves in the Western Canadian Sedimentary Basin and the resulting surplus in pipeline capacity is one of the most serious issues facing industry in the immediate future. This is especially true of natural gas where the cost of transportation, which can be as high as 30 per cent, is one of major importance to gas marketers. Locking in prices or allowing prices to float can make the difference between huge losses or gains depending on the interplay of the various factor that influence price fluctuations. Examples of how decisions about oil and gas prices are made, and the various outcomes that may result from marketer decisions are described to illustrate the vagaries of the natural gas market.

Golden age: marketers extract the most from oil and natural gas trade

International Nuclear Information System (INIS)

Lorenz, A.

2000-01-01

The complexity of the oil and natural gas markets, the complex factors which interact to produce the price of oil or natural gas on any given day, and the role of marketers in this high stakes game are discussed. While oil and natural gas prices are very good today compared to the low prices through much of the 1990s, marketers are now concerned about the ability of Canadian fields to produce enough to fill the expanded pipelines and meet the rising demand. As the oil and natural gas industry in Canada is moving from a pipeline-constrained environment to a resource-constrained environment, the question of declining reserves in the Western Canadian Sedimentary Basin and the resulting surplus in pipeline capacity is one of the most serious issues facing industry in the immediate future. This is especially true of natural gas where the cost of transportation, which can be as high as 30 per cent, is one of major importance to gas marketers. Locking in prices or allowing prices to float can make the difference between huge losses or gains depending on the interplay of the various factor that influence price fluctuations. Examples of how decisions about oil and gas prices are made, and the various outcomes that may result from marketer decisions are described to illustrate the vagaries of the natural gas market

Developments on the European energy market. Part 1. Natural gas supply. Extra import covers growing natural gas demand in Europe

International Nuclear Information System (INIS)

Van Gelder, J.W.

2000-01-01

This first part of a series on developments in the European gas market features the growth in gas supply. 35% of the gas demand must be covered from sources outside Europe. For the future additional imports are required from countries such as the Russian Federation, Algeria and Nigeria. Over the next few years the artificial link between ga and oil prices will disappear, bringing the gas price to a structurally lower level. It will be of crucial importance that gas suppliers will not be able to form cartels to keep prices high. All competing projects will curb price increases on the European market, but will definitely result in more freedom of choice for European natural gas consumers

The dynamic linkages between crude oil and natural gas markets

International Nuclear Information System (INIS)

Batten, Jonathan A.; Ciner, Cetin; Lucey, Brian M.

2017-01-01

The time varying price spillovers between natural gas and crude oil markets for the period 1994 to 2014 are investigated. Contrary to earlier research, we show that in a large part of our sample the natural gas price leads the price of crude oil with price spillover effects lasting up to two weeks. This result is robust to a battery of tests including out-of-sample forecasting exercises. However, after 2006, we detect little price dependencies between these two energy commodities. These findings arise due to a conjunction of both demand and supply-side shocks arising from both natural and economic events, including Hurricane Katrina, the Tohoku earthquake and the Global Financial Crisis, as well as infrastructure and technological improvements. The increased use of new technologies such as hydraulic fracking for the extraction of gas and oil in particular affected supply in the latter part of the study. We conclude that the long term relation present in the early part of the sample has decoupled, such that price determination of these two energy sources is now independent. - Highlights: • Contrary to earlier research we find natural gas may lead crude oil prices over a long sample. • This finding holds in forecasting out of sample. • There may be a break in the relationship between oil and gas in 2006. • We suggest that new technologies and financial conditions have led to a decoupling of these markets. • Oil and natural gas prices may now be determined independently.

Natural gas participation on brazilian demand supply of liquefied petroleum gas

International Nuclear Information System (INIS)

Freitas Rachid, L.B. de

1991-01-01

Natural Gas Liquids Production, Liquefied Petroleum Gas (LPG) among them, has undergone a continuous growth and technological development until the first half of the eighties. This paper presents the natural gas processing activity development in Brazil, in the last 20 years, and the increasing share of LPG produced from natural gas in the supply of LPG domestic market. Possibilities of achieving greater shares are discussed, based on economics of natural gas processing projects. Worldwide gas processing installed capacity and LPG pricing tendencies, and their influence in the construction of new Natural Gas Processing Units in Brazil, are also discussed. (author)

Natural gas imports and exports, first quarter report 2000

Energy Technology Data Exchange (ETDEWEB)

None

2000-06-01

The Office of Natural Gas and Petroleum Import and Export Activities prepares quarterly reports showing natural gas import and export activity. Companies are required to file quarterly reports. Attachments show the percentage of takes to maximum firm contract levels and the weighted average per unit price for each of the long-term importers during the 5 most recent reporting quarters, volumes and prices of gas purchased by long-term importers and exporters during the past 12 months, volume and price data for gas imported on a short-term or spot market basis, and the gas exported on a short-term or spot market basis to Canada and Mexico.

Natural gas imports and exports, third quarter report 2000

Energy Technology Data Exchange (ETDEWEB)

None

2000-12-01

The Office of Natural Gas and Petroleum Import and Export Activities prepares quarterly reports showing natural gas import and export activity. Companies are required to file quarterly reports. Attachments show the percentage of takes to maximum firm contract levels and the weighted average per unit price for each of the long-term importers during the 5 most recent quarters, volumes and prices of gas purchased by long-term importers and exporters during the past 12 months, volume and price data for gas imported on a short-term or spot market basis, and the gas exported on a short-term or spot market basis to Canada and Mexico.

Natural gas imports and exports, fourth quarter report 1999

International Nuclear Information System (INIS)

None

2000-01-01

The Office of Natural Gas and Petroleum Import and Export Activities prepares quarterly reports showing natural gas import and export activity. Companies are required to file quarterly reports. Attachments show the percentage of takes to maximum firm contract levels and the weighted average per unit price for each of the long-term importers during the five most recent quarters, volumes and prices of gas purchased by long-term importers and exporters during the past 12 months, volume and price data for gas imported on a short-term or spot market basis, and the gas exported on a short-term or spot market basis to Canada and Mexico

Natural gas imports and exports, fourth quarter report 1999

Energy Technology Data Exchange (ETDEWEB)

None

2000-03-01

The Office of Natural Gas and Petroleum Import and Export Activities prepares quarterly reports showing natural gas import and export activity. Companies are required to file quarterly reports. Attachments show the percentage of takes to maximum firm contract levels and the weighted average per unit price for each of the long-term importers during the five most recent quarters, volumes and prices of gas purchased by long-term importers and exporters during the past 12 months, volume and price data for gas imported on a short-term or spot market basis, and the gas exported on a short-term or spot market basis to Canada and Mexico.

Natural gas imports and exports, third quarter report 2000

International Nuclear Information System (INIS)

None

2000-01-01

The Office of Natural Gas and Petroleum Import and Export Activities prepares quarterly reports showing natural gas import and export activity. Companies are required to file quarterly reports. Attachments show the percentage of takes to maximum firm contract levels and the weighted average per unit price for each of the long-term importers during the 5 most recent quarters, volumes and prices of gas purchased by long-term importers and exporters during the past 12 months, volume and price data for gas imported on a short-term or spot market basis, and the gas exported on a short-term or spot market basis to Canada and Mexico

Implications of the recent reductions in natural gas prices for emissions of CO2 from the US power sector.

Science.gov (United States)

Lu, Xi; Salovaara, Jackson; McElroy, Michael B

2012-03-06

CO(2) emissions from the US power sector decreased by 8.76% in 2009 relative to 2008 contributing to a decrease over this period of 6.59% in overall US emissions of greenhouse gases. An econometric model, tuned to data reported for regional generation of US electricity, is used to diagnose factors responsible for the 2009 decrease. More than half of the reduction is attributed to a shift from generation of power using coal to gas driven by a recent decrease in gas prices in response to the increase in production from shale. An important result of the model is that, when the cost differential for generation using gas rather than coal falls below 2-3 cents/kWh, less efficient coal fired plants are displaced by more efficient natural gas combined cycle (NGCC) generation alternatives. Costs for generation using NGCC decreased by close to 4 cents/kWh in 2009 relative to 2008 ensuring that generation of electricity using gas was competitive with coal in 2009 in contrast to the situation in 2008 when gas prices were much higher. A modest price on carbon could contribute to additional switching from coal to gas with further savings in CO(2) emissions.

Natural gas monthly, July 1990

Energy Technology Data Exchange (ETDEWEB)

1990-10-03

This report highlights activities, events, and analyses of interest to public and private sector organizations associated with the natural gas industry. Volume and price data are presented each month for natural gas production, distribution, consumption, and interstate pipeline activities. Producer-related activities and underground storage data are also reported. A glossary is included. 7 figs., 33 tabs.

Electricity/natural gas competition in Quebec

International Nuclear Information System (INIS)

Bernard, J.-T.

1992-01-01

The evolution of energy market shares (electricity, natural gas and oil products) in Quebec's residential and commercial sectors in the 1980s shows that energy source relative prices have influenced consumer behavior as expected. A set of comparisons from space and water heating markets in these sectors with regard to prices paid by consumers and costs incurred by society in general is presented. For the residential sector, it is seen that consumers pay only a fraction of the cost for electric space and water heating; the same service could be provided at smaller cost by natural gas. For the commercial sector, the electricity and natural gas tariffs convey the appropriate message with respect to the cost incurred in providing the service. 6 refs., 7 tabs

The criteria for setting the natural gas reference price for purposes of government take calculation; Os criterios para fixacao do preco de referencia do gas natural para fins de calculo das participacoes governamentais

Energy Technology Data Exchange (ETDEWEB)

Lima, Flavio Augusto Pimentel de; Rosa, Renata Gualberto Cordeiro [PETROBRAS, Rio de Janeiro, RJ (Brazil)

2008-07-01

The Petroleum Law states that the concession contract will also have provisions regarding the government takes established by the bid tender. However, the criteria for calculating the value of Royalties are set forth in the Decree 2.705/98, enacted to set such criteria, taking into account the volumes of production and the reference prices for oil and natural gas. The following aspects are analyzed in this paper: the method for calculating the volumes subject to the impact of Royalties; definition of the reference price for natural gas, the general rule for setting up the reference price in case the sale was made at market price; the special rule in case the sale was not made on a market basis, in case there is no sale or in case of breach of the conditions set in that Decree; and the settlement of the reference price in situations where only part of the volumes produced are sold on contracts that meet the requirements of the Decree. In conclusion the problems caused by gaps in legislation will be highlighted, particularly with regard to concessions granted to consortia as well as the inconsistencies between the applicable legislation, which may provide different analysis, including by the ANP, according to the features of each case. (author)

Estimating soil erosion on hiking trails in the Sierra Mariola Natural Park in southern Spain

Science.gov (United States)

Magdalena Warter, Maria; Peeters, Mattias; Kuppen, Emiel; Blok, Kas; Dilly, Lina

2017-04-01

Natural parks and protected natural areas provide excellent recreational opportunities for outdoor activities through the richness of the natural environment and the abundance of walking trails. Hiking, mountain biking and running have rapidly gained popularity over recent years increasing concerns about the erosion and degradation of hiking trails caused by (over)use. This is also the case in the Sierra Mariola Natural Park in southeast Spain, which is a popular destination for tourists due to its diverse fauna and flora. The increasing number of tourists together with the negative impacts of climate change necessitates a better understanding of the key soil erosion processes impacting hiking trails. There are 4 scenic trail routes in the Natural Park amounting to 21 km plus an additional network of unofficial trails. Apart from the heavy touristic traffic on the trails there are large trail running events with up to 1000 participants becoming increasingly popular, however local park authorities have voiced concerns about the impacts of these activities on the trails. Despite the popularity of walking trails around the world, there is a paucity of research exploring soil erosion from these features. Therefore, the aims of this study are: 1) to ascertain the amount of erosion that occurs on trails in the Sierra Mariola Natural Park, and 2) determine the key factors that influence soil erosion. Some 100 km of trails were evaluated (both official and unmarked trails), with route segments ranging between 2 and 10 km. A trail classification system was developed to group trail segments based on their surface characteristics (bedrock, gravel, mixed sediment, soil or man-made) and specific erosion features (rills, ditch-shaped, tilted). For each class, the average erosion rate was calculated which ranged from 262 t/ha for soil-based trails to 2006 t/ha for heavily eroded, ditch-shaped trails. The spatial distribution of the different erosion rates and trail types were

Measuring and testing natural gas and electricity markets volatility : evidence from Alberta's deregulated markets

Energy Technology Data Exchange (ETDEWEB)

Serletis, A.; Shahmoradi, A. [Calgary Univ., AB (Canada). Dept. of Economics

2005-03-01

A number of innovative methods for modelling spot wholesale electricity prices have recently been developed. However, these models have primarily used a univariate time series approach to the analysis of electricity prices. This paper specified and estimated a multivariate GARCH-M model of natural gas and electricity price changes and their volatilities, using data over the deregulated period between January 1996 to November 2004 from Alberta's spot power and natural gas markets. The primary objective of the model was to investigate the relationship between electricity and natural gas prices. It was noted that the model allows for the possibilities of spillovers and asymmetries in the variance-covariance structure for natural gas and electricity price changes, and also for the separate examination of the effects of the volatility of anticipated and unanticipated changes in natural gas and electricity prices. Section 2 of the paper provided a description of the model used to test for causality between natural gas and electricity price changes, while section 3 discussed the data and presented the empirical results. It was concluded that there is a bidirectional causality between natural gas and electricity price changes. However, neither anticipated nor unanticipated natural gas price volatility causes electricity price changes. Anticipated electricity price volatility has a causal effect on natural gas. 10 refs., 2 tabs., 3 figs.

The British Columbia natural gas market overview and assessment : an energy market assessment

International Nuclear Information System (INIS)

2004-04-01

The National Energy Board monitors the supply of all energy commodities in Canada along with the demand for Canadian energy commodities in domestic and export markets. This report provides an assessment of the natural gas market in British Columbia (BC) and discusses several issues facing the market. The main challenges facing the market in recent years have been rising prices, price spikes and increased price volatility. New exploration and development projects have been announced along with new gas pipeline projects that move gas to eastern markets. Industrial consumers are exploring fuel alternatives to reduce natural gas consumption. Despite these challenges, the Board believes the natural gas market in British Columbia is working well. Natural gas prices are integrated with the North American market, consumers have responded to higher prices by reducing demand, and producers have increased exploration and production. Price discovery has improved due to better pricing reporting standards and access to electronic gas trading at pricing points for BC gas. The small market size in British Columbia and the lack of storage in the Lower Mainland limit market liquidity in comparison with other major market centres. 20 figs

The natural gas market

International Nuclear Information System (INIS)

Lagrasta, F.; Kaminski, V.; Prevatt, R.

1999-01-01

This chapter presents a brief history of the natural gas market highlighting the changes in the gas market and examining risk management in practice detailing the types of price risks, and the use of hedging using forwards and swaps. Options to manage risk are identified, and the role of risk management in financing, the role of the intermediary, and the market outlook are discussed. Panels describing the market structure, storage and natural gas risk management, the art of risk management, the winter 1995-96 basis blowout, spark spreads, the UK gas market and Europe, and weather derivatives are presented

Canadian natural gas : review of 1997 and outlook to 2005

International Nuclear Information System (INIS)

Chenier, M.; Foran, J.; Lamontagne, M.; McGrath, D.; Martin, P.

1998-04-01

North American and Canadian natural gas industry trends, such as supply, demand, storage, gas flows, prices and transportation capacities are summarized. The focus is on regional natural gas markets, as the issues of natural gas price differentials, gas market integration and the need for large expansions of natural gas pipeline capacity between markets will continue to hold center stage. Analysis of trends indicate that in 1997, the Canadian natural gas industry continued to be one of the two most important supply regions in North America although natural gas demand growth was weak (+0.3 per cent) due to a mild winter. Supply growth kept pace with poor demand growth. It was noted that over the next eight years, gas demand is expected to increase by an average annual rate of 2 per cent, down from the recent pace of 3 per cent annually. The sectors of the economy that are expected to lead the growth will be electricity generation and industrial use. The largest new demand will be seen in the U.S. Gulf Coast, Midwest, West, Northeast, and South Atlantic. Prices are expected to remain volatile but will not return to the low prices of 1995. Prices are expected to stay close to finding and development costs. The demand analysis provided much detail on the drivers of gas consumption by sector for each region in Canada and the United States. A regulatory analysis section was also included, given that recent regulatory events will have notable effects on natural gas markets. The National Energy Board and the U.S. Energy Information Administration were the main sources of statistical information, but private consultants, industry association and other federal government agencies in Canada and the U.S. also provided information. 19 refs., 12 tabs., 43 figs

Canadian natural gas liquids : market outlook 2000 - 2010

International Nuclear Information System (INIS)

Gill, L.; Mortensen, P.

2001-01-01

This study provides a comprehensive analysis of the availability of Canadian natural gas liquids. The analysis was developed from production profiles and gas compositions for individual gas pools and takes into account the effects of market factors. On the demand side, the effects of new infrastructure and changes in corporate structures have been evaluated. The study was initiated at a time when energy prices were stable and the major concern was to see how the addition of the Alliance pipeline, the Aux Sable gas processing plant, the Empress V straddle plant and the Nova/UCC E3 ethylene plant would affect the Canadian liquids business. The study was complicated by the advent of unexpected factors affecting the supply and demand of natural gas liquids (NGLs). These included extremely high prices for natural gas, an apparent inability of the supply basin to respond to the high gas prices with increased supply, and the very high electricity costs in Alberta. The weak supply of NGLs coincides with the increase in ethane demand from the start-up of Alberta's fourth ethylene facility and the addition of the high vapour pressure Alliance pipeline. This weak supply suggests there will be an ethane shortage for at least the next few years. The longer term outlook, however, is less certain and will require an analysis of the outlook for gas production, gas composition and NGL extraction capacity. This study developed two forecasts for natural gas prices. Both presume rising gas demand across North America driven by increased gas use for power generation. The Low Case assumes modest growth in domestic Canadian gas demand and the High case predicts strong growth in domestic demand as higher levels of exports to the United States, resulting in a doubling in growth for Canadian gas production from 2000-2015 compared to the Low Case. Both High and Low Case scenarios suggest that prices will decline from current levels so that Alberta plant gate prices fall by 2005 and will then

Canadian natural gas liquids : market outlook 2000 - 2010

Energy Technology Data Exchange (ETDEWEB)

Gill, L.; Mortensen, P.

2001-04-01

This study provides a comprehensive analysis of the availability of Canadian natural gas liquids. The analysis was developed from production profiles and gas compositions for individual gas pools and takes into account the effects of market factors. On the demand side, the effects of new infrastructure and changes in corporate structures have been evaluated. The study was initiated at a time when energy prices were stable and the major concern was to see how the addition of the Alliance pipeline, the Aux Sable gas processing plant, the Empress V straddle plant and the Nova/UCC E3 ethylene plant would affect the Canadian liquids business. The study was complicated by the advent of unexpected factors affecting the supply and demand of natural gas liquids (NGLs). These included extremely high prices for natural gas, an apparent inability of the supply basin to respond to the high gas prices with increased supply, and the very high electricity costs in Alberta. The weak supply of NGLs coincides with the increase in ethane demand from the start-up of Alberta's fourth ethylene facility and the addition of the high vapour pressure Alliance pipeline. This weak supply suggests there will be an ethane shortage for at least the next few years. The longer term outlook, however, is less certain and will require an analysis of the outlook for gas production, gas composition and NGL extraction capacity. This study developed two forecasts for natural gas prices. Both presume rising gas demand across North America driven by increased gas use for power generation. The Low Case assumes modest growth in domestic Canadian gas demand and the High case predicts strong growth in domestic demand as higher levels of exports to the United States, resulting in a doubling in growth for Canadian gas production from 2000-2015 compared to the Low Case. Both High and Low Case scenarios suggest that prices will decline from current levels so that Alberta plant gate prices fall by 2005 and will

Natural gas central to world's future energy mix

International Nuclear Information System (INIS)

Carson, M.M.

1997-01-01

Continued growth in demand for natural gas is one of three pillars around which the energy mix of the future will take shape and upon which energy strategies should be based. The others are consumption efficiency and growth of renewable energy sources. This paper evaluates world energy supply and demand and includes an analysis of world pipeline gas, electricity, and LNG trends. The paper discusses the natural gas resource, proved reserves, reserves growth, gas prices and demand, country demand trends, world energy use, gas pipeline construction, power generation, electricity consumption and prices, and global carbon emissions

Equivalent oil price, equivalent gas price and CO2 cost

International Nuclear Information System (INIS)

Bacher, P.

2008-01-01

This article assess the magnitudes of costs to replace oil (and natural gas) in their fixed (heat) or mobile (transport) uses with energy savings or non CO 2 emitting energies. The price of oil (or gas) at which such measures would be profitable at is inferred, without any tax or subsidy, as well as the resulting CO 2 costs avoided. It shows that several of the actions considered in France and Europe to protect the climate are far from being the most economically justified. (author)

Marketing of natural gas in the USA

Energy Technology Data Exchange (ETDEWEB)

Goldammer, D [Thyssengas G.m.b.H., Duisburg (Germany, F.R.); Knapp, U [Westfaelische Ferngas-A.G., Dortmund (Germany, F.R.)

1979-08-01

The exchange of experience with experts engaged in the US gas supply industry has shown that natural gas can be supplied there at a much lower price than in West Germany and that for this reason the price is not the main incentive to save energy. The low prices, which apply also to other forms of energy although not to the same extent, are a consequence of the energy policy pursued by the US government. The representatives of the gas supply industry are not in favour of this policy and attenpts have been made for some considerable time to effect a change in policy. As long as these attempts are not attended with success, the US gas supply industry is trying to achieve its aim by pointing out that natural gas is a national resource and that additional supplies will become available provided that present users adopt energy saving measures. The gas supply industry cooperates closely with the appliance manufacturers and retailers. Joint efforts have been made to help users reduce their energy bills by employing appliances that require less gas and by acquainting them with methods devised for making proper use of energy. The gas supply industry is further strongly interested in coal as a source of energy for largely substituting SNG for natural Gas.

An electricity price model with consideration to load and gas price effects.

Science.gov (United States)

Huang, Min-xiang; Tao, Xiao-hu; Han, Zhen-xiang

2003-01-01

Some characteristics of the electricity load and prices are studied, and the relationship between electricity prices and gas (fuel) prices is analyzed in this paper. Because electricity prices are strongly dependent on load and gas prices, the authors constructed a model for electricity prices based on the effects of these two factors; and used the Geometric Mean Reversion Brownian Motion (GMRBM) model to describe the electricity load process, and a Geometric Brownian Motion(GBM) model to describe the gas prices; deduced the price stochastic process model based on the above load model and gas price model. This paper also presents methods for parameters estimation, and proposes some methods to solve the model.

Estimation of demand function on natural gas and study of demand analysis

Energy Technology Data Exchange (ETDEWEB)

Kim, Y.D. [Korea Energy Economics Institute, Euiwang (Korea, Republic of)

1998-04-01

Demand Function is estimated with several methods about the demand on natural gas, and analyzed per usage. Since the demand on natural gas, which has big share of heating use, has a close relationship with temperature, the inter-season trend of price and income elasticity is estimated considering temperature and economic formation. Per usage response of natural gas demand on the changes of price and income is also estimated. It was estimated that the response of gas demand on the changes of price and income occurs by the change of number of users in long term. In case of the response of unit consumption, only industrial use shows long-term response to price. Since gas price barely responds to the change of exchange rate, it seems to express the price-making mechanism that does not reflect timely the import condition such as exchange rate, etc. 16 refs., 12 figs., 13 tabs.

Natural gas imports and exports. First quarter report 1997

Energy Technology Data Exchange (ETDEWEB)

NONE

1997-09-01

The Office of Natural Gas and Petroleum Import and Export Activities prepares quarterly reports summarizing the data provided by companies authorized to import or export natural gas. Attachment A shows the percentage of takes to maximum firm contract levels and the weighted average per unit price for each of the long-term importers during the five most recent reporting quarters. Attachment B shows volumes and prices of gas purchased by long-term importers and exporters during the past 12 months. Attachment C shows volume and price information pertaining to gas imported on a short-term or spot market basis. Attachment D shows the gas exported on a short-term or spot market basis to Canada and Mexico. 14 figs., 9 tabs.

Natural gas market assessment. Canadian natural gas market mechanisms: Recent experiences and developments

International Nuclear Information System (INIS)

1993-11-01

The increase in natural gas demand and the associated expansions of most of the pipeline systems serving western Canada have reduced the excess deliverability or excess productive capacity that existed at the time of deregulation of the natural gas industry in 1985. Based on an industry survey, the responses of natural gas buyers and sellers to recent supply difficulties are described. Specific production, transportation, and contractual difficulties were encountered in winter 1992/93 as production was stretched to meet record levels of demand during periods of very cold temperatures and as short-term spot prices reached very high levels. Problems at this time included wellhead freezeups, pipeline outages, and inadequate contract terms and conditions. Methods used to maintain gas flows to end users are reviewed, including a discussion of force majeure, spot gas purchases, storage, supply curtailment, and special loan arrangements. In 1992/93, in most instances where the responsibility fell on the end-user to solve the supply problem, the difficulty was shifted to local distribution companies who have traditionally had more experience with such situations. No cases were identified where either a firm or interruptible end-user was forced to curtail gas consumption because of inadequate supply. New market mechanisms are emerging that will enable buyers and sellers of western Canadian gas to avoid many of the problems encountered in 1992/93. These include prearranged backstopping arrangements, short-term spot markets, access to other gas basins, standardized gas contracts, electronic trading, and price risk management tools. 11 figs

Natural gas 1998: Issues and trends

International Nuclear Information System (INIS)

1999-06-01

Natural Gas 1998: Issues and Trends provides a summary of the latest data and information relating to the US natural gas industry, including prices, production, transmission, consumption, and the financial and environmental aspects of the industry. The report consists of seven chapters and five appendices. Chapter 1 presents a summary of various data trends and key issues in today's natural gas industry and examines some of the emerging trends. Chapters 2 through 7 focus on specific areas or segments of the industry, highlighting some of the issues associated with the impact of natural gas operations on the environment. 57 figs., 18 tabs

Natural gas 1998: Issues and trends

Energy Technology Data Exchange (ETDEWEB)

NONE

1999-06-01

Natural Gas 1998: Issues and Trends provides a summary of the latest data and information relating to the US natural gas industry, including prices, production, transmission, consumption, and the financial and environmental aspects of the industry. The report consists of seven chapters and five appendices. Chapter 1 presents a summary of various data trends and key issues in today`s natural gas industry and examines some of the emerging trends. Chapters 2 through 7 focus on specific areas or segments of the industry, highlighting some of the issues associated with the impact of natural gas operations on the environment. 57 figs., 18 tabs.

Guidelines For Evaluation Of Natural Gas Projects

International Nuclear Information System (INIS)

Farag, H.; El Messirie, A.

2004-01-01

This paper is objected to give guidelines for natural gas projects appraisal These guidelines are summarized in modeling of natural gas demand forecast and energy pricing policies for different gas consumers mainly in the manufacturing, mining, transport, trade and agriculture sectors. Analysis of the results is made through sensitivity analysis and decision support system ( DSS )

Natural gas supply and demand outlook

International Nuclear Information System (INIS)

McGill, C.B.

1998-01-01

The outlook for U.S. natural gas supply and demand in the residential, commercial, industrial/cogeneration, electricity and transportation sectors for 1995, 2000, 2005, 2010, and 2015 was presented. A summary of gas well completions from 1990 to 1997 was also provided. The Canadian natural gas resource was estimated at 184 trillion cubic feet. In 1996, Canada produced 5.6 trillion cubic feet of natural gas, half of which was exported to the U.S. New pipeline projects have been proposed to transport natural gas from eastern offshore areas and the Western Canadian Sedimentary Basin. A table representing U.S. and Canada gas trade from 1990 to 1997 and a map of proposed Canadian and U.S. natural gas pipeline routes were also included. Looking into the future, this speaker predicted continued volatility in natural gas prices. 9 tabs., 9 figs

Natural gas demand in the European household sector

International Nuclear Information System (INIS)

Nilsen, Odd Bjarte; Asche, Frank; Tveteras, Ragnar

2005-08-01

This paper analyzes the residential natural gas demand per capita in 12 European countries using a dynamic log linear demand model, which allows for country-specific elasticity estimates in the short- and long-run. The explanatory variables included lagged demand per capita, heating degree days index, real prices of natural gas, light fuel oil, electricity, and real private income per capita. The short-run own-price and income elasticity tend to be very inelastic, but with greater long-run responsiveness. By splitting the data set in two time periods, an increase in the own-price elasticities were detected for the European residential natural gas demand market as a whole. We have provided support for employing a heterogeneous estimator such as the shrinkage estimator. But the empirical results also motivate a further scrutiny of its properties. (Author)

Apples with apples: accounting for fuel price risk in comparisons of gas-fired and renewable generation

Energy Technology Data Exchange (ETDEWEB)

Bolinger, Mark; Wiser, Ryan

2003-12-18

For better or worse, natural gas has become the fuel of choice for new power plants being built across the United States. According to the US Energy Information Administration (EIA), natural gas combined-cycle and combustion turbine power plants accounted for 96% of the total generating capacity added in the US between 1999 and 2002--138 GW out of a total of 144 GW. Looking ahead, the EIA expects that gas-fired technology will account for 61% of the 355 GW new generating capacity projected to come on-line in the US up to 2025, increasing the nationwide market share of gas-fired generation from 18% in 2002 to 22% in 2025. While the data are specific to the US, natural gas-fired generation is making similar advances in other countries as well. Regardless of the explanation for (or interpretation of) the empirical findings, however, the basic implications remain the same: one should not blindly rely on gas price forecasts when comparing fixed-price renewable with variable-price gas-fired generation contracts. If there is a cost to hedging, gas price forecasts do not capture and account for it. Alternatively, if the forecasts are at risk of being biased or out of tune with the market, then one certainly would not want to use them as the basis for resource comparisons or investment decisions if a more certain source of data (forwards) existed. Accordingly, assuming that long-term price stability is valued, the most appropriate way to compare the levelized cost of these resources in both cases would be to use forward natural gas price data--i.e. prices that can be locked in to create price certainty--as opposed to uncertain natural gas price forecasts. This article suggests that had utilities and analysts in the US done so over the sample period from November 2000 to November 2003, they would have found gas-fired generation to be at least 0.3-0.6 cents/kWh more expensive (on a levelized cost basis) than otherwise thought. With some renewable resources, in particular wind

Natural-gas supply-and-demand problems

International Nuclear Information System (INIS)

Hatamian, H.

1998-01-01

World natural-gas consumption quadrupled in the 30 years from 1966 to 1996, and natural gas now provides 22% of the total world energy demand. The security of natural-gas supply is paramount and rests with the suppliers and the consumers. This paper gives an overview of world natural-gas supply and demand and examines the main supply problems. The most important nonpredictable variables in natural-gas supply are worldwide gas price and political stability, particularly in regions with high reserves. Other important considerations are the cost of development/processing and the transport of natural gas to market, which can be difficult to maintain if pipelines pass through areas of political instability. Another problem is that many countries lack the infrastructure and capital for effective development of their natural-gas industry. Unlike oil, the cost of transportation of natural gas is very high, and, surprisingly, only approximately 16% of the total world production currently is traded internationally

What justifies the lack of alignment between natural gas and crude oil prices in the period 2006-2007; O que justifica o deslocamento entre os precos do gas natural e do petroleo no periodo 2006-2007

Energy Technology Data Exchange (ETDEWEB)

Abreu, Ana Lucia Vahia de; Pinelli, Marcelo Santos

2008-07-01

The objective of the work is to show that the mismatch between Brent and Henry Hub in the period 2006-2007 is mainly due to the local characteristics of natural gas market. After the beginning of 2008, the price of Henry Hub is increasing and returning to the long term relationship (nonlinear) with Brent. Even with local features, the natural gas market tends to be a market of tradable goods. (author.

Natural gas, uncertainty, and climate policy in the US electric power sector

International Nuclear Information System (INIS)

Bistline, John E.

2014-01-01

This paper investigates how uncertainties related to natural gas prices and potential climate policies may influence capacity investments, utilization, and emissions in US electricity markets. Using a two-stage stochastic programming approach, model results suggest that climate policies are stronger drivers of greenhouse gas emission trajectories than new natural gas supplies. The dynamics of learning and irreversibility may give rise to an investment climate where strategic delay is optimal. Hedging strategies are shown to be sensitive to the specification of probability distributions for climate policy and natural gas prices, highlighting the important role of uncertainty quantification in future research. The paper also illustrates how this stochastic modeling framework could be used to quantify the value of limiting methane emissions from natural gas production. - Highlights: • This paper examines how uncertainty may impact natural gas in the power sector. • Uncertainties like gas prices, upstream emissions, and climate policy are modeled. • Climate policies are stronger drivers of emissions than gas supply conditions. • Lower gas prices are likely to spark greater utilization of existing capacity. • Irreversibility and uncertainty may make strategic delay optimal

Oxygenates to hike gasoline price

International Nuclear Information System (INIS)

Anon.

1992-01-01

This paper reports that cost of achieving required US gasoline formulations this winter in Environmental Protection Agency carbon monoxide (CO) nonattainment areas could reach 3-5 cents/gal, an Energy Information Administration analysis has found. EIA says new winter demand for gasoline blending oxygenates such as methyl tertiary butyl ether (MTBE) or ethanol created by 190 amendments to the Clean Air Act (CAA) will exceed US oxygenate production by 140,000-220,000 b/d. The shortfall must be made up from inventory or imports. EIA estimates the cost of providing incremental oxygenate to meet expected gasoline blending demand likely will result in a price premium of about 20 cents/gal of MTBE equivalent over traditional gasoline blend octane value. That cost likely will be added to the price of oxygenated gasoline

Natural gas in the World 2014

International Nuclear Information System (INIS)

2014-01-01

for the totality of shale gas production, for Argentina and China have begun producing marginal quantities of shale gas. In terms of exploration and development outside North America, the most important progress thus far has been made in China. However, the year 2013 was marked by strong political interest worldwide in the development of unconventional gas. In 2013, the international natural gas trade (net of LNG re-exports) reached a volume of 1039.6 bcm, an increase of 2.1% over 2012. Asia-Oceania was responsible for the bulk of the global increase in international imports. While the intra-regional natural gas trade remained stable, the inter-regional natural gas trade recovered in 2013 (up 5% to 443 bcm), driven by the rebound in Russian pipeline gas exports to Europe and by the ramp-up of Central Asia's pipeline gas deliveries to China. Conversely, the international LNG trade was relatively static in 2013, at around 313 bcm in a context of restricted LNG supply. Asian LNG imports continued to pick up (+6%), weighing down on Europe's LNG supply (-27%). In terms of consumption, it was unusual that the growth rate for energy, even oil, outpaced that of natural gas in 2013. In Europe, natural gas suffered from a severe competition with coal and renewables. Asia-Oceania has remained the fastest growing regional market in the last few years, driven by China. Strong growth rates for consumption were also recorded in emerging markets in the Middle East (+3%) and Latin America (Brazil). On the other hand, actual natural gas consumption grew moderately in the OECD area (+1.5%) and recorded a negative performance in the C.I.S. (-0.7%). In 2014, international spot prices showed strong volatility. Persistent divergence between regional gas prices attests specific regional fundamentals and different pricing patterns. In Europe, it is worth noting the clear convergence between the price of imported gas in Germany and the average spot price; the latter has become the

Short-term Canadian natural gas deliverability 2006-2008 : an energy market assessment

International Nuclear Information System (INIS)

2006-10-01

This report presented an assessment of the expected capability of Canadian gas production through to the year 2008. Strong natural gas prices have led to record drilling levels in Canada's natural gas industry. North American natural gas prices reached a peak near the end of 2005. The rise in prices during 2005 reflected high world crude oil prices, a tight balance between natural gas supply and demand, and disruptions to United States gas supply from 2 hurricanes. In response to rising prices, western Canada drilling activity achieved new highs in early 2006. Higher drilling rates also reflected rising costs for key inputs of steel, fuel, and labour. Gas prices have since softened due to a storage overhang resulting from a mild winter. The combination of rising costs and softening prices has impacted margins for Canadian gas producers. In response, some producers have reduced drilling expansion plans in coalbed methane (CBM) and shallow gas plays in the Western Canadian Sedimentary Basin (WCSB). Increases in deeper gas drilling have been maintained. Total gas drilling for 2006 is expected to rise by 3 per cent compared to 2005. The report projected a small increase in Canada's total annual gas production from 484 million m 3 /d in 2005 to 491 million m 3 /d in 2008. Annual average deliverability of conventional gas is expected to decline slightly over the projection period. The decrease is expected to be more than offset by growth in CBM production in western Canada, which is expected to increase from 8 million m 3 /d in 2005 to 27 million m 3 /d in 2008. 5 tabs., 5 figs

Alberta producers' gas export prices slip

International Nuclear Information System (INIS)

Chandrasekharaiah, M.N.; Dubben, G.; Kolster, B.H.

1992-01-01

This paper reports that Alberta gas producers have approved a new contract with California buyers that includes slightly lower wellhead prices and more flexible pricing terms. The 1 year agreement, will apply a flexible price formula to gas sales. A basic volume of 212 MMcfd will receive $1.52 (U.S.)/Mcf. A and S also will buy 200 MMcfd at prices paid for other Alberta gas in the California market. It will have the right to buy added volumes at prices indexed to gas sold into California from the U.S. Southwest. Ballots cast by producers were to be verified by regulatory agencies in Alberta and British Columbia. The more flexible price terms in the new contract are seen as a positive development for negotiations in a dispute over long term contracts

Henry Hub and national balancing point prices: what will be the international gas price reference?

International Nuclear Information System (INIS)

Mazighi, A.E.H.

2005-01-01

One of the lessons in the history of international trade in commodities is the emergence - sooner or later - of an international price reference, most commonly known as an international marker price. In the area of oil, West Texas Intermediate (WTI) plays the role of a marker for sour crudes traded in the Atlantic basin. Brent oil fulfils this function for sweet crudes traded in Europe. Another important aspect in the area of global commodities is that the emergence of a marker price is not always necessarily related to the relative share of production of exports of the commodity, but primarily to the existence of an organized market for this commodity. Today, while international gas trade is intensifying, we still lack an international price reference for this commodity. This is due to the fact that the international trade of natural gas is still highly regionalized. It is also due to the fact that most gas markets are still regulated. Nevertheless, deregulation efforts have been implemented in both developed (the United States, the United Kingdom, continental Europe, Korea) and developing countries (Brazil, Chile) and have led to new market structures based on more competition in all segments of the gas chain, except transportation. In the meantime, price structures based on supply and demand principles are supposed to have emerged in the US and UK markets in the 1990s as a result of the implementation of deregulation measures. Today, the US gas market, which represents more than 660 billion cubic metres per year of consumption and the UK gas market, which is close to 100 bcm annually, are considered mature enough to make the principles of supply and demand operate inside these markets. In fact, the Henry Hub (HH) price, which is determined at a physical location in Louisiana, US, and the national balancing point (NBP) price, which is determined somewhere inside the national transmission system (NTS), without any precise location, are considered as potential

Some economic aspects of the European natural gas market

International Nuclear Information System (INIS)

Golombek, R.

1990-01-01

The thesis consists of five papers with following titles: Optimal utilization of natural gas. Computation of the resource rent for Norwegian natural gas; The relationship between the price of natural gas and crude oil - some aspects of efficient contracts; Bargaining and international trade - the case of Norwegian natural gas; On bilateral monopoly - a Nash-Wicksell Approach; Bertrand games and duopoly

An optimization model for natural gas supply portfolios of a power generation company

International Nuclear Information System (INIS)

Jirutitijaroen, Panida; Kim, Sujin; Kittithreerapronchai, Oran; Prina, José

2013-01-01

Highlights: ► An optimization model for daily operation of a natural gas-fired generation company is proposed. ► The model considers uncertainties in electricity price and natural gas price. ► The model is formulated to capture the hedging decisions by the company. ► The solution yields quantities of natural gas, generating schedule and purchasing quantities of electricity. ► Higher profit can be achieved by adapting inventory and production to the actual spot prices of natural gas and electricity. - Abstract: This paper considers a deregulated electricity market environment where a natural gas-fired generation company can engage in different types of contracts to manage its natural gas supply as well as trade on the electricity market. If the contracts are properly designed, they can protect the company from fluctuations in electricity price and demand, at some cost to the company’s expected profit. This reduction in profit can be mitigated by trading on the natural gas and electricity spot markets, but this trading activity may also sometimes result in losses. A stochastic programming model is formulated to capture the hedging decisions made by the company, as well as the interactions between the natural gas and electricity markets. The benefits offered by this approach for profit maximization in a variety of business scenarios, such as the case where the company can hold some amount of gas in storage are studied and presented. It is found that the stochastic model enables the company to optimize the electricity generation schedule and the natural gas consumption, including spot price transactions and gas storage management. Several managerial insights into the natural gas market, natural gas storage, and distribution profit are given

Futures trading and the storage of North American natural gas

Energy Technology Data Exchange (ETDEWEB)

Serletis, Apostolos; Shahmoradi, Asghar [Calgary Univ., Dept. of Economics, Calgary, AB (Canada)

2006-03-15

This paper tests the theory of storage in North American natural gas markets, using the Fama and French (1988) indirect test. In particular, we test the theory's prediction that when inventory is high, large inventory responses to shocks imply roughly equal changes in spot and futures prices, whereas when inventory is low, smaller inventory responses to shocks imply larger changes in spot prices than in futures prices. Our tests on spot and futures North American natural gas prices confirm these predictions of the theory of storage. (Author)

Electric utilities and the demand for natural gas

Energy Technology Data Exchange (ETDEWEB)

Uri, N D; Atkinson, S

1976-03-01

The scarcity of natural gas has given rise to a series of priorities of deliveries based on end use and drafted by the Federal Power Commission. The U.S. Supreme Court, on June 7, 1972, held that the Commission has jurisdiction over curtailments in the service of gas in interstate commerce to both resale and direct industrial customers. This decision reversed a Fifth Circuit Court ruling that protected direct industrial customers from curtailments. The FPC priority curtailments are classed from 1 to 9, for which electric utilities are concentrated in classes 4 to 9. As weather conditions become more severe, not only do the residential and commercial consumers demand more electrical energy, they also demand more natural gas. The result is that there is less natural gas available for electric utilities to use for generation so they change to an alternative fuel. A demand model for the short term for natural gas for electric utilities is given; primary factors involve the price of natural gas, the prices of substitute fuels, and the demand for electrical energy by the various consumer classes. (MCW)

Recommendation system to determine suitable and viable hiking routes: a prototype application in Sierra de las Nieves Nature Reserve (southern Spain)

Science.gov (United States)

Vías, Jesús; Rolland, José; Gómez, María Luisa; Ocaña, Carmen; Luque, Ana

2018-05-01

This paper describes a system for recommending hiking routes to help manage hiking activities in a protected area. The system proposes various routes, based on five criteria that maximize some aspects of hikers' requirements (by analyzing the viability and difficulty of the trails) and also those of protected areas managers (by proposals to relieve congestion in areas already used for hiking and to promote awareness of new ones, as a contribution to environmental education). The recommendation system uses network analysis, multi-criteria decision analysis and geographic information system by free software tools: PgRouting, PostgreSQL and PostGIS. This system has been tested in Sierra de las Nieves Nature Reserve (Andalusia, Spain). Of the 182 routes obtained by the system, 62 (34%) are considered viable for hikers in Sierra de las Nieves, taking into account the type of user most likely to visit this protected area. Most routes have a high difficulty level, which is coherent with the mountainous character of the protected area.

An emerging economic view of world natural gas demand and supply

International Nuclear Information System (INIS)

Dorsett, W.H.; Ackerman, G.B.

1992-01-01

Natural gas is swiftly moving from a locally traded commodity in regional markets to a globally traded commodity. This paper describes a numerical model of international gas trade which evaluates the effects of inter- and intra-regional gas trade on demand, supply and price. Preliminary evidence indicates natural gas prices are 15 to 30% lower in real terms when inter-regional trade occurs and local consumption of natural gas increases relative to fuel oil in the local market. Natural gas developers or marketers that explicitly consider the inter-regional impacts of gas trade will have a greater likelihood of understanding the risks in marginal projects and are more likely to embrace economic projects and eschew noneconomic projects

Natural gas's hottest spot

International Nuclear Information System (INIS)

Peterson, T.

1993-01-01

This paper reviews the growing power and economic strength of Enron Corp., a natural gas distributor and exploration company. The paper reviews the policy of the company to exploit deregulation at home and privatization of all sorts of energy companies abroad. Enron is actively building its own power plants in the US and has successfully boosted their profits by 20 percent in what was considered a flat natural gas market. The paper goes on to discuss the company's view of the new energy tax and how it should benefit natural gas companies as a whole. Finally the paper reviews the contracting procedures of the company to secure long-term fixed price contracts in a volatile market which precludes most companies from taking the risk

Liberalising the European natural gas market

International Nuclear Information System (INIS)

Mulder, M.

2002-01-01

Europe's natural gas market is changing radically. The several national markets dominated by monopolistic suppliers are integrating into one European market in which production and trade are subject to competition, while transport through the networks will be unbundled and placed under regulatory influence. What will be the consequences of these changes on natural gas prices, supply security and the environment?

The impacts of petroleum price fluctuations on income distribution across ethnic groups in Malaysia

NARCIS (Netherlands)

Saari, M. Yusof; Dietzenbacher, Erik; Los, Bart

2016-01-01

Crude oil price hikes have compelled governments of developing countries to let domestic prices of energy increase. Fiscal priorities made it impossible to fully compensate the hikes by raising energy subsidies. This paper examines the potential impacts of a limited deregulation of the petroleum

Some risks related to the short-term trading of natural gas

International Nuclear Information System (INIS)

Mazighi, Ahmed El Hachemi

2004-01-01

Traditionally guided by long-term contracts, the international natural gas trade is experiencing new methods of operating, based on the short term and more flexibility. Today, indeed, the existence of uncommitted quantities of natural gas, combined with gas price discrepancies among different regions of the world, gives room for the expansion of the spot-trading of gas. The main objective of this paper is to discuss three fundamental risks related to the short-term trading of natural gas: volume risk, price risk and infrastructure risk. The defenders of globalisation argue that the transition from the long-term to the short-term trading of natural gas is mainly a question of access to gas reserves, decreasing costs of gas liquefaction, the building of liquefied natural gas (LNG) fleets and regasification facilities and third-party access to the infrastructure. This process needs to be as short as possible, so that the risks related to the transition process will disappear rapidly. On the other hand, the detractors of globalisation put the emphasis on the complexity of the gas value chain and on the fact that eliminating long-term contracts increases the risks inherent to the international natural gas business. In this paper, we try to untangle and assess the risks related to the short-term trading of natural gas. Our main conclusions are: the short-term trading of gas is far from riskless; volume risk requires stock-building in both consuming and producing countries; price risk, through the high volatility for gas, induces an increase in options prices; there is no evidence to suggest that money-lenders' appetite for financing gas infrastructure projects will continue in a short-term trading system. This would be a threat to consumers' security of supply. (Author)

Annual survey 2013 - Natural gas in the World 2013

International Nuclear Information System (INIS)

2013-01-01

The 2013 Edition of 'Natural Gas in the World' by CEDIGAZ is built on CEDIGAZ's unique natural gas statistical database. This 170-page study, published since 1983, provides an in-depth analysis of the latest developments in the gas markets along with the most complete set of statistical data on the whole gas chain covering close to 130 countries. Topics covered by Natural Gas in the World 2013 include: proved natural gas reserves; unconventional gas status in the world; gross and marketed natural gas production; the international gas trade; existing and planned underground gas storage facilities in the world; natural gas consumption; natural gas prices

Experience curve for natural gas production by hydraulic fracturing

International Nuclear Information System (INIS)

Fukui, Rokuhei; Greenfield, Carl; Pogue, Katie; Zwaan, Bob van der

2017-01-01

From 2007 to 2012 shale gas production in the US expanded at an astounding average growth rate of over 50%/yr, and thereby increased nearly tenfold over this short time period alone. Hydraulic fracturing technology, or “fracking”, as well as new directional drilling techniques, played key roles in this shale gas revolution, by allowing for extraction of natural gas from previously unviable shale resources. Although hydraulic fracturing technology had been around for decades, it only recently became commercially attractive for large-scale implementation. As the production of shale gas rapidly increased in the US over the past decade, the wellhead price of natural gas dropped substantially. In this paper we express the relationship between wellhead price and cumulative natural gas output in terms of an experience curve, and obtain a learning rate of 13% for the industry using hydraulic fracturing technology. This learning rate represents a measure for the know-how and skills accumulated thus far by the US shale gas industry. The use of experience curves for renewable energy options such as solar and wind power has allowed analysts, practitioners, and policy makers to assess potential price reductions, and underlying cost decreases, for these technologies in the future. The reasons for price reductions of hydraulic fracturing are fundamentally different from those behind renewable energy technologies – hence they cannot be directly compared – and hydraulic fracturing may soon reach, or maybe has already attained, a lower bound for further price reductions, for instance as a result of its water requirements or environmental footprint. Yet, understanding learning-by-doing phenomena as expressed by an industry-wide experience curve for shale gas production can be useful for strategic planning in the gas sector, as well as assist environmental policy design, and serve more broadly as input for projections of energy system developments. - Highlights: • Hydraulic

Natural gas imports and exports. First quarter report, 1998

Energy Technology Data Exchange (ETDEWEB)

NONE

1998-08-01

The Office of Natural Gas and Petroleum Import and Export Activities prepares quarterly reports summarizing the data provided by companies authorized to import or export natural gas. Companies are required, as a condition of their authorizations, to file quarterly reports. This report is for the first quarter of 1998 (January through March). Attachment A shows the percentage of takes to maximum firm contract levels and the weighted average per unit price for each of the long-term importers during the five most recent reporting quarters. Attachment B shows volumes and prices of gas purchased by long-term importers and exporters during the past 12 months. Attachment C shows volume and price information pertaining to gas imported on a short-term or spot market basis. Attachment D shows the gas exported on a short-term or spot market basis to Canada and Mexico.

Natural gas imports and exports: Third quarter report, 1998

Energy Technology Data Exchange (ETDEWEB)

NONE

1998-12-31

The Office of Natural Gas and Petroleum Import and Export Activities prepares quarterly reports summarizing the data provided by companies authorized to import or export natural gas. Companies are required, as a condition of their authorizations, to file quarterly reports. This report is for the third quarter of 1998 (July--September). Attachment A shows the percentage of takes to maximum firm contract levels and the weighted average per unit price for each of the long-term importers during the five most recent calendar quarters. Attachment B shows volumes and prices of gas purchased by long-term importers and exporters during the past 12 months. Attachment C shows volume and price information pertaining to gas imported on a short-term or spot market basis. Attachment D shows the gas exported on a short-term or spot market basis to Canada and Mexico.

Natural gas imports and exports. Fourth quarter report, 1998

Energy Technology Data Exchange (ETDEWEB)

NONE

1998-12-31

The Office of Natural Gas and Petroleum Import and Export Activities prepares quarterly reports summarizing the data provided by companies authorized to import or export natural gas. Companies are required, as a condition of their authorizations, to file quarterly reports. This report is for the fourth quarter of 1998 (October through December). Attachment A shows the percentage of takes to maximum firm contract levels and the weighted average per unit price for each of the long-term importers during the five most recent reporting quarters. Attachment B shows volumes and prices of gas purchased by long-term importers and exporters during the past 12 months. Attachment C shows volume and price information pertaining to gas imported on a short-term or spot market basis. Attachment D shows the gas exported on a short-term or spot market basis to Canada and Mexico.

Natural gas imports and exports. Second quarter report, 1998

Energy Technology Data Exchange (ETDEWEB)

NONE

1998-11-01

The Office of Natural Gas and Petroleum Import and Export Activities prepared quarterly reports summarizing the data provided by companies authorized to import or export natural gas. Companies are required, as a condition of their authorizations, to file quarterly reports. This report is for the second quarter of 1998 (April through June). Attachment A shows the percentage of takes to maximum firm contract levels and the weighted average per unit price for each of the long-term importers during the five most recent reporting quarters. Attachment B shows volumes and prices of gas purchased by long-term importers and exporters during the past 12 months. Attachment C shows volume and price information pertaining to gas imported on a short-term or spot market basis. Attachment D shows the gas exported on a short-term or spot market basis to Canada and Mexico.

Liquefied natural gas : a Canadian perspective : an energy market assessment

International Nuclear Information System (INIS)

2009-01-01

World requirements for energy and natural gas are expected to increase in the near future. This energy market assessment presented an overview of global liquefied natural gas (LNG) supply and demand, and discussed the potential effects that imported LNG may have on Canadian gas markets and energy infrastructure. Regasification projects will double the world's existing LNG receiving capacity by 2015. However, LNG pricing will still be indexed to the price of crude oil and oil products in the future. LNG price differences will affect trading opportunities as well as the flow of LNG between regions. North American LNG facility development will be influenced by outlooks for continental gas supply and demand. Current declines combined with recent increases in United States natural gas production from unconventional gas resources will reduce requirements for LNG in the near future, and may have a significant impact on long-term North American and global LNG requirements. Canada's existing facilities are located competitively with other terminals. 33 figs.

Natural gas commoditization - evolution and trends

International Nuclear Information System (INIS)

Albon, D.R.

1998-01-01

This presentation dealt with issues of deregulation in the natural gas industry. The commoditization process, the effect of deregulation as reflected by changes in the percentage distribution of market participation by profession in NYMEX in 1994 and for the first quarter of 1998, the natural gas supply and demand from 1990 to 1996, and natural gas market activities (i.e. swaps, EFPs, spreads, transportation look-alikes, triggers) were reviewed. An Alberta supply and demand forecast for the winter heating season of 1998-1999 and its impact on prices was also provided. tabs., figs

A multiple-location model for natural gas forward curves

International Nuclear Information System (INIS)

Buffington, J.C.

1999-06-01

This thesis presents an approach for financial modelling of natural gas in which connections between locations are incorporated and the complexities of forward curves in natural gas are considered. Apart from electricity, natural gas is the most volatile commodity traded. Its price is often dependent on the weather and price shocks can be felt across several geographic locations. This modelling approach incorporates multiple risk factors that correspond to various locations. One of the objectives was to determine if the model could be used for closed-form option prices. It was suggested that an adequate model for natural gas must consider 3 statistical properties: volatility term structure, backwardation and contango, and stochastic basis. Data from gas forward prices at Chicago, NYMEX and AECO were empirically tested to better understand these 3 statistical properties at each location and to verify if the proposed model truly incorporates these properties. In addition, this study examined the time series property of the difference of two locations (the basis) and determines that these empirical properties are consistent with the model properties. Closed-form option solutions were also developed for call options of forward contracts and call options on forward basis. The options were calibrated and compared to other models. The proposed model is capable of pricing options, but the prices derived did not pass the test of economic reasonableness. However, the model was able to capture the effect of transportation as well as aspects of seasonality which is a benefit over other existing models. It was determined that modifications will be needed regarding the estimation of the convenience yields. 57 refs., 2 tabs., 7 figs., 1 append

Having our gas and selling it too : natural gas distribution in Atlantic Canada

International Nuclear Information System (INIS)

Tucker, T.L.; Crowley, B.L.

2002-01-01

This paper presented an overview of the gas industry in Atlantic Canada, its history and development, with particular attention to the future of natural gas in Atlantic Canada, market pricing and rationalized regulation. It also includes a primer on the economic forces behind the industry. A regulatory framework was recommended that will provide gas to the greatest number of consumers at the lowest possible price. The report also describes 10 popular misconceptions regarding how the region believes it can best benefit from natural gas. The report dispels the idea that the greatest benefit comes from consuming natural gas locally. Other misconceptions are that gas can be sold locally at discount prices and at a premium to export markets. It was emphasized that Atlantic Canada needs the gas as much as New England markets, but the investment by consumers in the United States are a big driving force for offshore gas development. The author emphasized that even if Atlantic Canada never consumes its own natural gas, the royalties, economic growth, economic diversification and a new addition to the energy mix will generate benefits much greater than those which could come from local consumption alone. The author also suggests that the lack of market power in Atlantic Canada means that gas-specific provincial regulations to protect the public interest are not required. It was suggested that a gas distributor should be chosen to build the infrastructure and attract customers. This paper demonstrated that the greatest benefit to the region will come from deregulating the distribution industry while realizing the full market value of the gas for its owners. 15 refs

Feeling the pressure from natural gas

International Nuclear Information System (INIS)

Taffe, Peter

1998-01-01

The European directive establishing a competitive internal natural gas market will be the most important, though not the only, factor in advancing the rapid and far reaching changes which Europe's natural gas sector is undergoing. The knock-on effects which these changes will have on the chemical industry are examined. The benefits of opening up the gas market will be more consumer choice and a more efficient and globally competitive EU gas industry. But for the chemical industry it raises strategic issues surrounding gas procurement such as price risks and security of supply. These are especially acute where gas is used not just as a fuel but also as a feedstock. As the electricity market is progressively deregulated, independent power generation using combined heat and power could be an attractive choice in the chemical industry with the possibility of selling surplus electricity on the spot market. Other changes in the gas sector could arise from the environmental targets agreed in Kyoto which are likely to lead to an increase in fuel taxation, and the development of a spot market in gas as the link between oil and gas prices becomes less direct. (UK)

Third party access pricing to the network, secondary capacity market and economic optimum: the case of natural gas

International Nuclear Information System (INIS)

David, L.; Percebois, J.

2002-09-01

The gas deregulation process implies crucial choices concerning access to transportation networks. These choices deal with the nature, the structure and the level of access fees. This paper proposes an evaluation of different systems implemented both in Europe and North America, in relation to normative pricing references. The rules according to which shippers can buy or sell capacity represent another kind of choice that Regulators have to make. This paper proposes a simple model which demonstrates that secondary market prices should not be subject to a cap and emphasizes the need of a 'use-it-or-lose-it' rule on this market. (authors)

Medium-term perspectives of the natural gas industry

International Nuclear Information System (INIS)

Chabrelie, M.F.

2007-01-01

During the 1990's, natural gas was the energy source with the fastest rate of growth in the world energy balance. Nevertheless, recent evolutions of the energy context, in particular in terms of prices, have had a rather strong impact on the progress of the different energy sources penalizing gas a little. Beyond this competition between energies, which may increase, the medium-term perspectives of natural gas development is in keeping with an environment full of uncertainties. This article presents: the world supply and demand prospects for 2010-2015 (impact of high gas prices on other energy sources, occurrence of production constraints, political decisions of producing countries and world gas industry balance), trends on main markets (North America, Europe, Asia-Oceania), and international trade. (J.S.)

The US Shale Gas Revolution and Its Externality on Crude Oil Prices: A Counterfactual Analysis

Directory of Open Access Journals (Sweden)

Hongxun Liu

2018-03-01

Full Text Available The expansion of shale gas production since the mid-2000s which is commonly referred to as “shale gas revolution” has had large impacts on global energy outlook. The impact is particularly substantial when it comes to the oil market because natural gas and oil are substitutes in consumption and complements and rivals in production. This paper investigates the price externality of shale gas revolution on crude oil. Applying a structural vector autoregressive model (VAR model, the effect of natural gas production on real oil price is identified in particular, and then based on the identification, counterfactuals of oil price without shale gas revolution are constructed. We find that after the expansion of shale gas production, the real West Texas Intermediate (WTI oil price is depressed by 10.22 USD/barrel on average from 2007 to 2017, and the magnitude seems to increase with time. In addition, the period before shale gas revolution is used as a “thought experiment” for placebo study. The results support the hypothesis that real WTI oil price can be reasonably reproduced by our models, and the estimated gap for oil price during 2007–2017 can be attributed to shale gas revolution. The methodology and framework can be applied to evaluate the economic impacts of other programs or policies.

An introduction to the economics of natural gas

International Nuclear Information System (INIS)

Banks, F.E.

2003-01-01

This paper is an up-to-date, but only moderately technical survey, of the natural gas market. Supply, demand and pricing are discussed, and, in the light of the electricity deregulation experiment in California, where the expression ''dangerous failure'' has been repeatedly used to describe the extensive losses suffered by final consumers and utilities (or retailers), a modicum of attention is paid to the prospects for deregulating natural gas. Some microeconomics of the natural gas market is presented at a more elementary level than in author's energy economics textbook (2000) or book ''The Political Economy of Natural Gas'' (1987), and the author makes a studied attempt to avoid bringing the misleading Hotelling model (of exhaustible resource depletion) into the exposition. Finally, some comments on risk management with futures contracts are provided, and there is a brief mathematical appendix on futures, options and two-part pricing. (author)

Rising prices squeeze gas marketer

Energy Technology Data Exchange (ETDEWEB)

Lunan, D.

2000-06-19

Apollo Gas, a Toronto-based gas marketer, is considering options to enhance unit holder value, including sale of its 21,000 gas supply contracts, just weeks after it was forced out of the Alberta market by rising gas prices. Although the company had reported first quarter revenues of more than $15 million and earnings through that period of about $2.1 million, increases of 33 per cent and 38 per cent respectively over the same period in 1999, the company is resigned to the fact that such performance markers are not likely to be reached again in the foreseeable future, hence the decision to sell. About 95 per cent of Apollo's current transportation service volumes are matched to existing fixed-price supply contract which are due to expire in November 2000. After that, it is about 75 per cent matched for the balance of the term of its customer contracts (mostly five years). This means that the company is exposed to market prices that are likely to continue to increase. If this prediction holds true, Apollo would be forced to purchase the unhedged volumes of gas it needs to service its customers in the spot market at prices higher than prices the company is charging to its customers.

Rising prices squeeze gas marketer

International Nuclear Information System (INIS)

Lunan, D.

2000-01-01

Apollo Gas, a Toronto-based gas marketer, is considering options to enhance unit holder value, including sale of its 21,000 gas supply contracts, just weeks after it was forced out of the Alberta market by rising gas prices. Although the company had reported first quarter revenues of more than $15 million and earnings through that period of about $2.1 million, increases of 33 per cent and 38 per cent respectively over the same period in 1999, the company is resigned to the fact that such performance markers are not likely to be reached again in the foreseeable future, hence the decision to sell. About 95 per cent of Apollo's current transportation service volumes are matched to existing fixed-price supply contract which are due to expire in November 2000. After that, it is about 75 per cent matched for the balance of the term of its customer contracts (mostly five years). This means that the company is exposed to market prices that are likely to continue to increase. If this prediction holds true, Apollo would be forced to purchase the unhedged volumes of gas it needs to service its customers in the spot market at prices higher than prices the company is charging to its customers

Gas analysis modeling system forecast for the Energy Modeling Forum North American Natural Gas Market Study

International Nuclear Information System (INIS)

Mariner-Volpe, B.; Trapmann, W.

1989-01-01

The Gas Analysis Modeling System is a large computer-based model for analyzing the complex US natural gas industry, including production, transportation, and consumption activities. The model was developed and first used in 1982 after the passage of the NGPA, which initiated a phased decontrol of most natural gas prices at the wellhead. The categorization of gas under the NGPA and the contractual nature of the natural gas market, which existed at the time, were primary factors in the development of the basic structure of the model. As laws and regulations concerning the natural gas market have changed, the model has evolved accordingly. Recent increases in competition in the wellhead market have also led to changes in the model. GAMS produces forecasts of natural gas production, consumption, and prices annually through 2010. It is an engineering-economic model that incorporates several different mathematical structures in order to represent the interaction of the key groups involved in the natural gas market. GAMS has separate supply and demand components that are equilibrated for each year of the forecast by means of a detailed transaction network

Natural gas industry in Bulgaria

International Nuclear Information System (INIS)

Mashkin, L.

1994-01-01

An overview of the Bulgarian natural gas industry is presented. The starting point was the discovery of the indigenous Chiren gas-field in 1967. The first agreement with the ex-USSR for supply of natural gas and construction of main pipelines was signed in 1968. The state gas company BULGARGAZ is responsible for transportation, storage, distribution, processing and marketing of the gas to over 150 industrial companies in the country, as well as for the transportation services to gas importers in neighboring Turkey. The GAZSTROJMONTAZH company accomplish the construction of the local and transit pipelines to Turkey and Greece, as well as of some objects in Iran, Syria, Ukraine and Germany. In the past 20 years, 87890 million m 3 natural gas from Russia are supplied and 846 million m 3 - from domestic sources. The share of natural gas in the overall energy balance is 13.6% for 1992. The restructuring and further development of gas industry require to take into account some factors as: security in supply; investments for technical assurance; pricing policy for natural gas; development of private business. Some administrative problems are also mentioned. 2 tabs., 1 fig

North American Natural Gas Markets

International Nuclear Information System (INIS)

1989-02-01

This report summarizes die research by an Energy Modeling Forum working group on the evolution of the North American natural gas markets between now and 2010. The group's findings are based partly on the results of a set of economic models of the natural gas industry that were run for four scenarios representing significantly different conditions: two oil price scenarios (upper and lower), a smaller total US resource base (low US resource case), and increased potential gas demand for electric generation (high US demand case). Several issues, such as the direction of regulatory policy and the size of the gas resource base, were analyzed separately without the use of models

North American Natural Gas Markets

International Nuclear Information System (INIS)

1988-12-01

This report sunnnarizes the research by an Energy Modeling Forum working group on the evolution of the North American natural gas markets between now and 2010. The group's findings are based partly on the results of a set of economic models of the natural gas industry that were run for four scenarios representing significantly different conditions: two oil price scenarios (upper and lower), a smaller total US resource base (low US resource case), and increased potential gas demand for electric generation (high US demand case). Several issues, such as the direction of regulatory policy and the size of the gas resource base, were analyzed separately without the use of models

Two-part pricing structure in long-term gas sales contracts

International Nuclear Information System (INIS)

Slocum, J.C.; Lee, S.Y.

1992-01-01

Although the incremental electricity generation market has the potential to be a major growth area for natural gas demand in the U.S., it may never live up to such promise unless gas suppliers are more willing to enter into long-term gas sales agreements necessary to nurture this segment of the industry. The authors submit that producer reluctance to enter into such long-term sales agreements can be traced, at least in part to the differing contract price requirements between gas producers and buyers. This paper will address an evolving solution to this contracting dilemma - the development of a two-part pricing structure for the gas commodity. A two-part pricing structure includes a usage or throughput charge established in a way to yield a marginal gas cost competitive with electric utility avoided costs, and a reservation charge established to guarantee a minimum cash flow to the producer. Moreover, the combined effect of the two charges may yield total revenues that better reflect the producer's replacement cost of the reserves committed under the contract. 2 tabs

Canadian natural gas : review of 2003 and outlook to 2020

International Nuclear Information System (INIS)

2004-12-01

This presentation provides a summary of natural gas industry trends in Canada and the United States and also reviews Canadian natural gas exports in order to initiate dialogue with the industry and obtain feedback on Natural Resources Canada's interpretations of natural gas issues. The objective of this report is to provide an understanding of the overall North American natural gas picture, largely excluding Mexico, in a graphical format. This document examines market fundamentals in 2003, in 2004 and early 2005, and the long-term to 2020. The presentation first takes a review of 2003 by examining natural gas demand, supply, resources and reserves, storage, prices, and Canadian exports, imports and domestic sales. It then presents its short-term outlook. It concludes with the outlook to 2020 including demand, supply, prices, and Canadian exports and domestic sales. The document also contains appendices on coalbed methane in Canada, liquefied natural gas in Canada, as well as a five year review and outlook of North American natural gas pipelines. 28 refs., 15 tabs., 59 figs., 3 appendices

Natural gas imports and exports. Third quarter report 1997

Energy Technology Data Exchange (ETDEWEB)

NONE

1998-01-01

This quarterly report, prepared by The Office of Natural Gas and Petroleum Import and Export Activities, summarizes the data provided by companies authorized to import or export natural gas. Numerical data are presented in four attachments, each of which is comprised of a series of tables. Attachment A shows the percentage of takes to maximum firm contract levels and the weighted average per unit price for each of the long-term importers during the five most recent calendar quarters. Volumes and prices of gas purchased by long-term importers and exporters during the past year are given in Attachment B. Attachment C shows volume and price information pertaining to gas imported on a short-term or spot market basis. Attachment D lists gas exported on a short-term or spot market basis to Canada and Mexico. Highlights of the report are very briefly summarized.

Price management mechanisms and the gas contract

International Nuclear Information System (INIS)

Dickson, D.J.

1996-01-01

Pricing objectives and risk management strategies that can be achieved through the proper use of the standard gas contract, were discussed. Main topics of discussion were: (1) gas sales contract and convertible pricing, (2) gas contract and imbedded hedging, gas contracts and exchange traded instruments, (4) gas contracts fixed for floating swaps, and OTC options and exotics, (5) options and exotic price structures, and (6) advantages and disadvantages of using the gas contract versus the swap agreement

Advanced ultrasonic technology for natural gas measurement

Energy Technology Data Exchange (ETDEWEB)

NONE

2011-11-15

In recent years, due to rising environmental and safety concerns, increasing commodity prices, and operational inefficiencies, a paradigm shift has been taking place with respect to gas measurement. The price of natural gas depends on the location, time of the year, and type of consumer. There is wide uncertainty associated with an orifice meter. This paper presents the use of advanced ultrasonic technology for the measurement of natural gas. For many years, multi-path ultrasonic meters with intelligent sensor technology have been used for gas measurement. This paper gives the various applications of ultrasonic technology along with their advantages and a draws a comparison with orifice meters. From the study it can be concluded that extensive advances in the use of ultrasonic technology for gas measurement have widened the areas of application and that varying frequencies combined with sealed transducer designs make it possible to measure atmospheric and sour gas in custody transfer process control and flaring accurately.

The efficiency of natural gas futures markets

International Nuclear Information System (INIS)

Mazighi, A.E.H.

2003-01-01

Recent experience with the emergence of futures markets for natural gas has led to many questions about the drivers and functioning of these markets. Most often, however, studies lack strong statistical support. The objective of this article is to use some classical statistical tests to check whether futures markets for natural gas (NG) are efficient or not. The problem of NG market efficiency is closely linked to the debate on the value of NG. More precisely, if futures markets were really efficient, then: 1) spot prices would reflect the existence of a market assessment, which is proof that speculation and the manipulation of prices are absent; 2) as a consequence, spot prices could give clear signals about the value of NG; and 3) historical series on spot prices could serve as ''clean'' benchmarks in the pricing of NG in long-term contracts. On the whole, since the major share of NG is sold to power producers, the efficiency of futures markets implies that spot prices for NG are driven increasingly by power prices. On the other hand, if futures markets for natural gas fail the efficiency tests, this will reflect: 1) a lack of liquidity in futures markets and/or possibilities of an excess return in the short term; 2) a pass-through of the seasonality of power demand in the gas market; 3) the existence of a transitory process, before spot markets become efficient and give clear signals about the value of NG. Using monthly data on three segments of the futures markets, our findings show that efficiency is almost completely rejected on both the International Petroleum Exchange in London (UK market) and the New York Mercantile Exchange (US market). On the NYMEX, the principle of ''co-movement'' between spot and forward prices seems to be respected. However, the autocorrelation functions of the first differences in the price changes show no randomness of price fluctuations for three segments out of four. Further, both the NYMEX and the IPE fail, with regard to the

Measuring the influence of Canadian carbon stabilization programs on natural gas exports to the United States via a 'bottom-up' intertemporal spatial price equilibrium model

International Nuclear Information System (INIS)

Gabriel, S.A.; Vikas, S.; Ribar, D.M.

2000-01-01

In this paper, we present the results of a study of the impact of Canadian carbon stabilization programs on exports of natural gas to the United States. This work was based on a study conducted for the US Environmental Protection Agency. The Gas Systems Analysis model (GSAM), developed by ICF Consulting for the US Department of Energy, was used to gauge the overall impact of the stabilization programs on the North American natural gas market. GSAM is an intertemporal, spatial price equilibrium (SPE) type model of the North American natural gas system. Salient features of this model include characterization of over 17 000 gas production reservoirs with explicit reservoir-level geologic and economic information used to build up the supply side of the market. On the demand side, four sectors, residential, commercial, industrial and electric power generation, are characterized in the model. Lastly, both above and below ground storage facilities as well as a comprehensive pipeline network are used with the supply and demand side characterizations to arrive at estimates of market equilibrium prices and quantities and flows. 35 refs

Natural gas imports and exports: First quarter report 1995

Energy Technology Data Exchange (ETDEWEB)

NONE

1995-07-01

The Office of Fuels Programs prepares quarterly reports summarizing the data provided by companies authorized to import or export natural gas. Companies are required, as a condition of their authorizations, to file quarterly reports with the OFP. This quarter`s focus is market penetration of gas imports into New England. Attachments show the following: % takes to maximum firm contract levels and weighted average per unit price for the long-term importers, volumes and prices of gas purchased by long-term importers and exporters, volumes and prices for gas imported on short-term or spot market basis, and gas exported short-term to Canada and Mexico.

Industrial natural gas consumption in the United States: an empirical model for evaluating future trends

International Nuclear Information System (INIS)

Huntington, H.G.

2007-01-01

This study develops a statistical model of industrial US natural gas consumption based upon historical data for the 1958-2003 period. The model specifically addresses interfuel substitution possibilities and changes in the industrial economic base. Using a relatively simple approach, the framework can be simulated repeatedly with little effort over a range of different conditions. It may also provide a valuable input into larger modeling exercises where an organization wants to determine long-run natural gas prices based upon supply and demand conditions. Projections based upon this demand framework indicate that industrial natural gas consumption may grow more slowly over the next 20 yr than being projected by the U.S. Energy Information Administration (EIA). This conclusion is based upon the assumption that natural gas prices will follow oil prices, as they have done over recent decades. If natural gas prices should lag well below oil prices, as envisioned by the latest EIA outlook, industrial natural gas consumption should rapidly expand well beyond the levels being projected by EIA. (author)

Gas price and oil price: a new level of competition; Gaspreis und Oelpreis. Eine neue Stufe des Wettbewerbs

Energy Technology Data Exchange (ETDEWEB)

Hahn, Wolfgang; Poepperl, Claudia [Energie Consulting GmbH, Kehl (Germany)

2012-01-15

With a marked delay relative to electricity the gas market has now too come under the reign of competition. The dissociation of gas prices from oil prices was not only the result of successive deregulation but was also catalysed by the drop in demand attending the economic slump in 2008 and 2009. In response to the changing market environment the procurement processes of industrial and commercial customers have undergone lasting changes in the course of the past three years. At the same time, fierce competition has developed between the two energy carriers crude oil and natural gas.

Regulation Strategy in Natural Gas Sector. The Romanian Case

Directory of Open Access Journals (Sweden)

Coralia Angelescu

2006-10-01

Full Text Available This study provides a methodological analysis to evaluate the regulation strategy in Romanian natural gas sector. The market oriented reforms are not only associated with the gap between internal prices and world prices. In the same time, the market oriented reforms are mixed with the other forms of government intervention. The industry network theory provides a good pillar for maintaining natural monopoly in public utilities. The conclusions which are presented in this article offer a good theory for the activity of the National Authority of Regulation in Romanian natural gas sector.

An introduction to the economics of natural gas

Energy Technology Data Exchange (ETDEWEB)

Banks, F.E.

2003-03-01

This paper is an up-to-date, but only moderately technical survey, of the natural gas market. Supply, demand and pricing are discussed, and, in the light of the electricity deregulation experiment in California, where the expression ''dangerous failure'' has been repeatedly used to describe the extensive losses suffered by final consumers and utilities (or retailers), a modicum of attention is paid to the prospects for deregulating natural gas. Some microeconomics of the natural gas market is presented at a more elementary level than in author's energy economics textbook (2000) or book ''The Political Economy of Natural Gas'' (1987), and the author makes a studied attempt to avoid bringing the misleading Hotelling model (of exhaustible resource depletion) into the exposition. Finally, some comments on risk management with futures contracts are provided, and there is a brief mathematical appendix on futures, options and two-part pricing. (author)

Natural gas for utility generation

International Nuclear Information System (INIS)

Moore, T.

1992-01-01

Forecasters predict that natural gas will be the dominant fuel choice for utility capacity additions in the coming decade and that power generation will be by far the largest growth market for gas sales. While gas's low emissions, high efficiency potential, and present low cost argue persuasively for a surge in gas-fired generation, many utilities have been slow to commit to a gas future, citing reasoned concern about long-term price trends and the ability of gas suppliers to deliver the fuel where and when it will be needed. Meanwhile, the relatively low cost of gas-fired units is providing an opportunity for independent power producers to compete strongly with utilities for generation contracts. EPRI studies suggest that a sound, competitive strategy will be based not on how much gas a utility burns, but rather on how this capacity fits into its overall generating mix at various fuel price levels. Gas suppliers will need to pay special attention to the operating needs of power generators if they are to solidify this important market

Future view on Norwegian natural gas distribution, 2015 - 2025; Framtidsbilde for norsk naturgassdistribusjon, 2015 - 2025

Energy Technology Data Exchange (ETDEWEB)

Einang, P M; Hennie, E; Jetlund, A S; Bertelsen, T; Skjelvik, J M

2005-05-15

The report shows how the available market for natural gas can realised as LNG and CNG. The necessary investments in infrastructure and cost for the different solutions are also included. The expected price development natural gas and the connection prices for natural gas versus crude oil are shown. The report also shows the environmental benefits possible by choosing natural gas

Exploration of natural gas at sea towards a low point

International Nuclear Information System (INIS)

Bakker, P.

1995-01-01

Continuing low prices on the world market resulted in a decreased willingness of natural gas producers to invest in offshore projects in spite of improved marginal conditions for the oil and gas companies. Attention is paid to the policy of the Gasunie (Dutch natural gas distribution company) to focus on the exploitation of small natural gas fields to take the burden of the large natural gas field Slochteren in Groningen, Netherlands

Determining the economic consequences of natural gas substitution

International Nuclear Information System (INIS)

Rimos, Shaun; Hoadley, Andrew F.A.; Brennan, David J.

2014-01-01

Highlights: • The economics of the extraction and usage of Australian gas and coal are examined. • Effect of feedstock substitution on power, hydrogen and ammonia costs is studied. • Influence of capital cost, transfer price, discount rate and carbon tax is studied. • Black coal has lower transfer price than gas but results in higher overall costs. • Conventional gas and coal seam gas can be substituted with little economic penalty. - Abstract: Resource depletion is a key aspect of sustainability, because the consumption of finite resources impacts on their availability for future generations. There are many proposed methods for accounting for the depletion of a particular resource, amongst which include the proportion of the resource depleted, the rate of resource depletion, and the energy, exergy, or monetary cost of extraction as the resource becomes harder to find or extract. This paper is part of a wider study to measure resource depletion using its environmental and economic impacts for the case of natural gas, where depletion of natural gas requires substitution by black coal or coal seam gas. The capital and operating costs are estimated both for upstream fuel extraction and purification and downstream use of the fuel to produce electricity, hydrogen and ammonia. These costs are based on a commercial scale of operation, using the same basis for economic modelling in each case. Black coal was found to have the lowest transfer price from upstream to downstream processing among the three feedstocks, but the highest capital and operating costs in the downstream processes. Conventional gas produced slightly higher transfer prices and downstream processing costs compared to coal seam gas. The favourable economic and environmental indicators for natural gas and coal seam gas are expected to lead to increased demand for these resources over coal, running the risk of a gas shortage. The economic consequence of a scarcity of either gas resource will be a

Third party access pricing to the network, secondary capacity market and economic optimum: the case of natural gas

Energy Technology Data Exchange (ETDEWEB)

David, L.; Percebois, J

2002-09-01

The gas deregulation process implies crucial choices concerning access to transportation networks. These choices deal with the nature, the structure and the level of access fees. This paper proposes an evaluation of different systems implemented both in Europe and North America, in relation to normative pricing references. The rules according to which shippers can buy or sell capacity represent another kind of choice that Regulators have to make. This paper proposes a simple model which demonstrates that secondary market prices should not be subject to a cap and emphasizes the need of a 'use-it-or-lose-it' rule on this market. (authors)

The - compromised? - future of natural gas

International Nuclear Information System (INIS)

Rodriguez, Ph.

2009-01-01

Will natural gas be the main loser of the January 2009 crisis between Ukraine and Russia? The demonstration is made that the European Union is not free from the risk of a severe supply disruption. This is a bad news considering that the power generation is the growth vector of natural gas. Even if the gas black-out cannot exist, the power black-out still can happen. As soon as the Russian-Ukrainian conflict has occurred, the other energy sources (nuclear and renewable) have been called for help in Europe while coal is in the expectation. Since some time now, gas has to face several trend changes. First, uncertainty is increasing considering its growth prospects. The new version of the gas pluri-annual indicative plan (PIP Gaz) would foresee a stagnation of gas consumption up to 2020 (consequence of the French environmental policy), while the previous plan had foreseen a 2.1% annual growth rate between 2005 and 2015. Second, the direct indexing of gas prices on oil prices can have undesirable effects. Finally, the u-turn of the USA with respect to liquefied natural gas (LNG) may penalize its development. What answers should the European Union give in front of these uncertainties? Have the companies modified their strategy? Is the future of gas still fine? These are the questions debated during a round table organized by the BIP, the French Bulletin of Petroleum Industry. (J.S.)

Natural gas market a dream come true

International Nuclear Information System (INIS)

Anon.

2000-01-01

Predictions by the U.S. Energy Information Administration to the effect that the unprecedented high gas prices of recent months are here to stay are discussed. The key symptom of the tightening market are the reduced level of storage in both Canada and the United States. In late May gas in U.S. storage facilities stood at 1.2 trillion cubic feet or 25 per cent less than the same time last year, and Canada's storage facilities were only 34 per cent full compared to 45 per cent a year earlier, a strong suggestion that the markets are extremely tight. The combination of limited supply, increasing demand and expanding pipeline connections are considered to be a winning combination to ensure that gas prices will remain high for the foreseeable future. The most significant growth in demand for natural gas is for use in electric power generation. To illustrate the increased penetration of natural gas into the field of power generation, it is noted that 98 per cent of the 243 electricity generating plants announced for construction in the next five years are designed to be fired by natural gas

Oil price induced gas acquisition contracts. Immune to price changes; Oelpreisindizierte Gasbezugsvertraege. Immun gegen Preisaenderungen

Energy Technology Data Exchange (ETDEWEB)

Verhoeven, Meike [Soptim AG, Aachen (Germany)

2012-10-15

The gas price continues to be linked to the oil price. Gas utilities that must buy gas in these conditions and sell it at a fixed price incur considerable financial risk. Especially with long-term buying contracts, and especially for gas from Russia, producers insist on linking to the oil price. Gas utilities, on the other hand, had to stop to sell gas at a price linked to the oil price two years ago. Utilities attempt to protect themselves, e.g. via oil swaps. Professional portfolio management is necessary to cope with the risks and the highly complex processes involved.

Natural gas 1996 - issues and trends

International Nuclear Information System (INIS)

1996-12-01

This publication presents a summary of the latest data and information relating to the U.S. natural gas industry, including prices, production, transmission, consumption, and financial aspects of the industry

Natural gas 1996 - issues and trends

Energy Technology Data Exchange (ETDEWEB)

NONE

1996-12-01

This publication presents a summary of the latest data and information relating to the U.S. natural gas industry, including prices, production, transmission, consumption, and financial aspects of the industry.

The changing roles of natural gas aggregators - a Pan-Alberta Gas perspective

International Nuclear Information System (INIS)

Field, D. L.

1999-01-01

Traditional roles played by the various forms of natural gas marketing entities (margin-marketers, aggregators, brokers) and the factors that influence a producer of natural gas to market its gas through one or more of these entities are the subject of this paper. The author also reviews current developments in the natural gas marketing industry, focusing on changes from the perspective of the gas aggregator.The most significant change has been the trend by aggregators to branch out to provide a broad range of services that meet the needs of individual producers including gas management services for non-pool gas supply, transportation management, fixed and indexed pricing for both pool and non-pool supply, market based pricing, financial services for producers, short-term sales arrangements and streaming specific supply sources to specific markets. As aggregators continue to move away from offering only the traditional aggregator services, the distinction between aggregators and margin-marketers and the services they provide is becoming less distinct. The principal differences that will remain will be the differences in corporate structures and the shareholders who share the costs and receive the benefits generated by business activities of the aggregator. Another difference that will continue to exist is that margin-marketers offer North American-based services whereas aggregators focus on marketing natural gas primarily in Western Canada