Gas Prices (gas + price)

Distribution by Scientific Domains
Distribution within Business, Economics, Finance and Accounting

Kinds of Gas Prices

  • natural gas price

  • Selected Abstracts

    Optimization of energy usage for fleet-wide power generating system under carbon mitigation options

    AICHE JOURNAL, Issue 12 2009
    A. Elkamel
    Abstract This article presents a fleet-wide model for energy planning that can be used to determine the optimal structure necessary to meet a given CO2 reduction target while maintaining or enhancing power to the grid. The model incorporates power generation as well as CO2 emissions from a fleet of generating stations (hydroelectric, fossil fuel, nuclear, and wind). The model is formulated as a mixed integer program and is used to optimize an existing fleet as well as recommend new additional generating stations, carbon capture and storage, and retrofit actions to meet a CO2 reduction target and electricity demand at a minimum overall cost. The model was applied to the energy supply system operated by Ontario power generation (OPG) for the province of Ontario, Canada. In 2002, OPG operated 79 electricity generating stations; 5 are fueled with coal (with a total of 23 boilers), 1 by natural gas (4 boilers), 3 nuclear, 69 hydroelectric and 1 wind turbine generating a total of 115.8 TWh. No CO2 capture process existed at any OPG power plant; about 36.7 million tonnes of CO2 was emitted in 2002, mainly from fossil fuel power plants. Four electricity demand scenarios were considered over a span of 10 years and for each case the size of new power generation capacity with and without capture was obtained. Six supplemental electricity generating technologies have been allowed for: subcritical pulverized coal-fired (PC), PC with carbon capture (PC+CCS), integrated gasification combined cycle (IGCC), IGCC with carbon capture (IGCC+CCS), natural gas combined cycle (NGCC), and NGCC with carbon capture (NGCC+CCS). The optimization results showed that fuel balancing alone can contribute to the reduction of CO2 emissions by only 3% and a slight, 1.6%, reduction in the cost of electricity compared to a calculated base case. It was found that a 20% CO2 reduction at current electricity demand could be achieved by implementing fuel balancing and switching 8 out of 23 coal-fired boilers to natural gas. However, as demand increases, more coal-fired boilers needed to be switched to natural gas as well as the building of new NGCC and NGCC+CCS for replacing the aging coal-fired power plants. To achieve a 40% CO2 reduction at 1.0% demand growth rate, four new plants (2 NGCC, 2 NGCC+CCS) as well as carbon capture processes needed to be built. If greater than 60% CO2 reductions are required, NGCC, NGCC+CCS, and IGCC+CCS power plants needed to be put online in addition to carbon capture processes on coal-fired power plants. The volatility of natural gas prices was found to have a significant impact on the optimal CO2 mitigation strategy and on the cost of electricity generation. Increasing the natural gas prices resulted in early aggressive CO2 mitigation strategies especially at higher growth rate demands. 2009 American Institute of Chemical Engineers AIChE J, 2009 [source]

    Why do gas prices vary, or towards understanding the micro-structure of competition

    Philip Bromiley
    Strategic management work on competition considers industry segments or industries for the most part. We argue that real competition occurs at much lower levels of aggregation in many industries: what we term the micro-structure of competition. Micro-structures arise from boundedly rational firms searching imperfectly for business opportunities and boundedly rational consumers searching in a behaviorally determined manner for products and services. This paper lays out the basics of the micro-structural approach to competitive analysis and presents initial propositions from that approach. Copyright 2002 John Wiley & Sons, Ltd. [source]

    Natural gas prices could get squeezed

    Charles R. Matthews

    Energy security rises to top of agenda in 2006

    OIL AND ENERGY TRENDS, Issue 1 2006
    Article first published online: 17 JAN 200
    A dispute over gas prices between two former Soviet republics has spread alarm across Europe and caused the EU to reassess its energy security. Natural gas supplies are a long term concern for many European countries, but of much more immediate concern is the supply of crude oil and refined products. Last year saw record prices for both (see 'Oil Price Review', October 2005), caused by a combination of high demand in the US and Asia, a shortage of light, sweet crudes worldwide and damage by hurricanes to a large number of refineries along the US Gulf. [source]

    Forecasting natural gas prices using cointegration technique

    OPEC ENERGY REVIEW, Issue 4 2006
    Dr Salman Saif Ghouri
    This paper uses Augmented Dickey-Fuller and Phillips-Perron technique for determining whether individual crude oil prices (West Texas Intermediate, Brent, Japan crude cocktail) and natural gas prices- Henry Hub (HH), National Balancing Point (NBP), European and Japanese liquefied natural gas (LNG) prices are stationary or non-stationary. It then applies Johansen and Juselius cointegration technique for establishing long-run correlation between respective oil prices and natural gas prices. The paper concludes that all individual series pertaining to oil and natural gas prices are non-stationary and indeed having long-run relationship, despite short term drift. Ordinary least square method was used to forecast individual natural gas prices in various markets, assuming of course, that historical relationship continues to hold with respective oil prices throughout the forecasting period. Natural gas prices in each of the markets are expected to be stronger during 2005,25 as compared to respective historical average prices showing the tightness of the market. The mean NBP and HH forecast during 2005,25 are expected to be 92 and 84 per cent stronger than the historical average, whilst LNG prices in Japan continue to exhibit stronger trends during the forecast period as compared to rest of the markets in Europe and North America - showing greater dependency of imports and security of supply considerations. [source]

    Futures trading and the storage of North American natural gas

    OPEC ENERGY REVIEW, Issue 1 2006
    Apostolos Serletis
    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. [source]

    The price of natural gas

    OPEC ENERGY REVIEW, Issue 4 2001
    A.M. Samsam Bakhtiari
    Natural gas used to be a relatively Cheap primary energy source, always at a discount to crude oil (on a comparative British thermal unit basis). It gradually evolved into a major resource during the 20th century , reaching a 24 per cent share of global primary energy in 1999. In the year 2000, natural gas prices in the USA rose to unheard-of highs of $10/million Btu, ushering in a new era, with natural gas at a 120 per cent premium to crude oil. This clearly was a watershed for gas, somehow similar to the 1973-74 watershed for oil prices. And similarly, any return to the status quo-ante looks rather improbable, although a number of experts (alongside the International Energy Agency) still believe the 2000 price ,spike' to have been "only transitory" The consequences of higher gas prices (at a level equal to crude oil prices on a Btu basis) will be multifaceted and momentous, altering habits and uses in downstream industries and economic sectors, as well as providing added income for major gas-exporters, such as Russia, Canada and Algeria. Another potential consequence of the 2000 watershed might be to propel US standard prices (such as the ,Henry Hub' spot) to international status and gas price-setter, as the ,WTI spot' became an "international benchmark" for crude oils in the post-1993 era. For the time being, the equality of gas and oil prices has become the new norm; but, in the longer term, a discount of crude oil relative to natural gas might be envisaged, as the latter is a cleaner fuel and emits less carbon dioxide when used. [source]

    Firm Value and Hedging: Evidence from U.S. Oil and Gas Producers

    THE JOURNAL OF FINANCE, Issue 2 2006
    ABSTRACT This paper studies the hedging activities of 119 U.S. oil and gas producers from 1998 to 2001 and evaluates their effect on firm value. Theories of hedging based on market imperfections imply that hedging should increase the firm's market value (MV). To test this hypothesis, we collect detailed information on the extent of hedging and on the valuation of oil and gas reserves. We verify that hedging reduces the firm's stock price sensitivity to oil and gas prices. Contrary to previous studies, however, we find that hedging does not seem to affect MVs for this industry. [source]

    Natural gas prices and the gas storage report: Public news and volatility in energy futures markets

    Scott C. Linn
    This study examines the short-term volatility of natural gas prices through an examination of the intraday prices of the nearby natural gas futures contract traded on the New York Mercantile Exchange. The influence on volatility of what many regard as a key element of the information set influencing the natural gas market is investigated. Specifically, we examine the impact on natural gas futures price volatility of the Weekly American Gas Storage Survey report compiled and issued by the American Gas Association during the period January 1, 1999 through May 3, 2002 and the subsequent weekly report compiled and issued by the U.S. Energy Information Administration after May 6, 2002. We find that the weekly gas storage report announcement was responsible for considerable volatility at the time of its release and that volatility up to 30 minutes following the announcement was also higher than normal. Aside from these results, we document pronounced price volatility in this market both at the beginning of the day and at the end of the day and offer explanations for such behavior. Our results are robust to the manner in which the mean percentage change in the futures price is estimated and to correlation of these changes both within the day and across days. 2004 Wiley Periodicals, Inc. Jrl Fut Mark 24:283,313, 2004 [source]