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Investing in Climate Change
Published in Gene Beck, Grid Parity, 2020
The cleanest fossil fuel, natural gas, emits about half as much CO2 per unit of energy as coal does when burned for electricity generation. While the U.S. natural gas resource base is only about 9 percent of the world total, some 85 percent of the natural gas consumed in the United States is produced domestically, and much of the rest comes from Canada. In recent years, natural gas production from conventional resources has declined. But production from unconventional resources, such as coal beds, tight gas sands (rocks through which flow is very slow), and natural gas shales has increased. Higher natural gas prices in 2007 and 2008 led to expanded drilling from unconventional sources. This expansion increased total U.S. gas production by about 9 percent in 2008 after a decade of its being roughly constant. The result has been stable natural gas prices for several years now and likely will remain fairly stable over the next decade.
Natural Gas Purchasing
Published in Stephen A. Roosa, Steve Doty, Wayne C. Turner, Energy Management Handbook, 2020
Stephen A. Roosa, Carol Freedenthal
Natural gas prices were originally set by the federal agency having jurisdiction over the natural gas being sold. The original methodology for price setting was much like the rate of return methodology for pipeline transportation tariffs. This was a direct function of the believed costs of finding, developing, and producing natural gas. The low prices paid at the wellhead prevented the natural gas industry from maintaining the necessary supply and contributed to the shortages of NG in the mid-1970s. After prices were decontrolled and natural gas became a market priced commodity, prices reflected market conditions and economic factors. Typical supply and demand factors plus the additional influences of financial players, money value, and other economic considerations dictate natural gas prices.
Natural Gas
Published in Roy L. Nersesian, Energy Economics, 2016
The industrial sector with 192,000 customers is the second largest consumer at 30 percent of total demand. Natural gas supplies the energy needs of a host of manufacturing processes such as metal, glass, pulp and paper, and food processing industries. Natural gas is an energy source for waste treatment, incineration, drying and dehumidification processes, and a feedstock for fertilizer, chemical, and petrochemical industries. Natural gas prices directly affect food prices as it is a raw material for making ammonia-based nitrogen fertilizers and a source of energy for drying crops, pumping irrigation water, and processing food. While seasonal variations are less than those of residential and commercial users, the industrial sector experiences significant fluctuations in demand from changes in economic activity. Moreover, one-third of industrial users can switch to propane and fuel oil if natural gas prices get out of line with these alternative fuels. In 2014 fuel oil was much higher priced than natural gas, and therefore not consumed by industrial users as long as natural gas was available. But fracking is responsible for creating surpluses of propane that can be competitive with natural gas for some industrial applications. The industrial sector ranks third in what is paid for natural gas, while plants that generate electricity pay the lowest price. The electricity sector consists of about 1,000 electricity generating utilities that consume 33 percent of total natural gas demand. While seasonal demand is less pronounced, daily fluctuations are much greater as natural gas plays a prominent role in satisfying variable electricity demand above base load.
The impact of the North American shale gas technology on the US’ energy security: the case of natural gas
Published in International Journal of Sustainable Energy, 2022
Masoud Shirazi, Abdolrasoul Ghasemi, Jurica Šimurina
From the aspect of outcomes, the benefits of the shale gas technology for the economy are classified into explicit market impacts, e.g. raise in consumer surplus due to lower gas prices, increase in producer surplus and local as well as regional economic benefits, and implicit effects including air quality standards and climate change improvements as a result of emissions reductions2. Especially, the shale gas technology declines natural gas production cost by reducing the separation costs through potential economic and technical infrastructure, which leads to lower natural gas prices. Furthermore, the intermediate technology of shale gas revolution mitigates the short-term environmental concerns of the US’ economy since the price reduction of natural gas may decrease emissions (Acemoglu et al. 2019). Accordingly, the North-American shale gas technology is recognised as a potential affecting factor to analyse the short-term and long-term behavioural characteristics of the US’ energy environment.
Towards a liberalized Turkish natural gas market: a SWOT analysis
Published in Energy Sources, Part B: Economics, Planning, and Policy, 2019
Mehmet Efe Biresselioglu, Melike Demirbag Kaplan, Evrim Ozyorulmaz
As another case study, USA is an example of a successful liberalization process, both having the liberalized market structure and increased the use of pipeline transportation since it is the safest and most efficient and cost-effective way. As the US is both a consumer and producer in the global natural gas markets, the natural gas prices are determined in the spot and future markets, offsetting available and expected supply and demand conditions (Augustine et al., 2006). In the market price determination, the movements of thousands of well-informed buyers and sellers are clearly the key elements. The consumers gain a considerable benefit from this competitive market structure in terms of decreasing prices and expansion of services offered (Juris 1998).
Oil production cost, financial development, and economic growth in Russia
Published in Energy Sources, Part B: Economics, Planning, and Policy, 2018
Bezhan Rustamov, Cahit Adaoglu
Oil and natural gas prices both directly and indirectly affect economic growth in Russia – a heavily resource-based economy. Changes in oil and natural gas prices affect the economic growth through impacts on the currency value, the fiscal policy and the energy sector (Berument et al. 2010). In line with the measure suggested in the energy economics literature (e.g., Brini et al. 2017; Shahbaz et al. 2017), the oil price is measured by crude oil price (USD per barrel) in real prices. Russia has the largest natural gas reserves of any country in the world. Thus, in the model, we include the natural gas price measured by the Russian natural gas price (USD per million metrics).