The Experts below are selected from a list of 528 Experts worldwide ranked by ideXlab platform
Randal R Rucker - One of the best experts on this subject based on the ideXlab platform.
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measuring the effects of natural gas Pipeline constraints on regional pricing and market integration
Social Science Research Network, 2016Co-Authors: Roger Avalos, Timothy Fitzgerald, Randal R RuckerAbstract:Natural gas Pipeline capacity sets physical limits on the quantity of gas that can be moved between regions, with attendant price effects. We find support for the hypothesis of integrated regional markets. Using data on daily Pipeline flows and capacities in Florida and Southern California, we estimate reduced-form price effects of capacity constraints.We find that Pipeline congestion increased realized city gate prices by at least 11% over the mean in Florida and by 6% over the mean in Southern California. We attribute the difference in price effects to more binding capacity constraints in the Florida Pipeline network. Our estimates provide guidance for Interstate Pipeline investments.
Roger Avalos - One of the best experts on this subject based on the ideXlab platform.
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measuring the effects of natural gas Pipeline constraints on regional pricing and market integration
Social Science Research Network, 2016Co-Authors: Roger Avalos, Timothy Fitzgerald, Randal R RuckerAbstract:Natural gas Pipeline capacity sets physical limits on the quantity of gas that can be moved between regions, with attendant price effects. We find support for the hypothesis of integrated regional markets. Using data on daily Pipeline flows and capacities in Florida and Southern California, we estimate reduced-form price effects of capacity constraints.We find that Pipeline congestion increased realized city gate prices by at least 11% over the mean in Florida and by 6% over the mean in Southern California. We attribute the difference in price effects to more binding capacity constraints in the Florida Pipeline network. Our estimates provide guidance for Interstate Pipeline investments.
Timothy Fitzgerald - One of the best experts on this subject based on the ideXlab platform.
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measuring the effects of natural gas Pipeline constraints on regional pricing and market integration
Social Science Research Network, 2016Co-Authors: Roger Avalos, Timothy Fitzgerald, Randal R RuckerAbstract:Natural gas Pipeline capacity sets physical limits on the quantity of gas that can be moved between regions, with attendant price effects. We find support for the hypothesis of integrated regional markets. Using data on daily Pipeline flows and capacities in Florida and Southern California, we estimate reduced-form price effects of capacity constraints.We find that Pipeline congestion increased realized city gate prices by at least 11% over the mean in Florida and by 6% over the mean in Southern California. We attribute the difference in price effects to more binding capacity constraints in the Florida Pipeline network. Our estimates provide guidance for Interstate Pipeline investments.
Nicola Secomandi - One of the best experts on this subject based on the ideXlab platform.
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On the pricing of natural gas Pipeline capacity
2014Co-Authors: Nicola SecomandiAbstract:Pipelines play a critical role in matching the supply and demand of natural gas. The pricing of their capacity is an important problem in practice, both for Pipeline companies and shippers, the users of this capacity, including natural gas merchants, producers, and local distribution companies. This paper conducts a normative analysis of how Pipeline capacity should be priced by each of these players. Although the trading value of this capacity should be relevant to merchants and its substitution and congestion values to shippers and Pipelines, respectively, this analysis shows that all of these are equivalent values. Thus, Pipeline capacity should be priced at its trading value, a prediction that can be empirically investigated. This paper also conducts an empirical analysis of this prediction based on transacted prices of transport contracts for the capacity of the Tennessee Gas Pipeline, a major Interstate Pipeline in the United States, and finds support for it. This analysis suggests that the uncertainty in the evolution of natural gas prices is an important driver of operational performance in the pricing of Pipeline capacity. The results of this paper have potential relevance for the pricing of the capacity of other commodity conversion assets.
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On the Pricing of Natural Gas Pipeline Capacity
2024Co-Authors: Nicola SecomandiAbstract:Pipelines play a critical role in matching the supply and demand of natural gas. The pricing of their capacity is an important problem in practice for Pipeline companies and the users of this capacity, which include shippers such as natural gas merchants, producers, and local distribution companies. This paper conducts a normative analysis of how Pipeline capacity should be priced by each of these players. Although the trading value of this capacity should be relevant to merchants and its substitution and congestion values to shippers and Pipelines, respectively, this analysis shows that all of these are equivalent values. Thus Pipeline capacity should be priced at its trading value, a prediction that can be empirically investigated. This paper also conducts an empirical analysis of this prediction based on transacted prices of transport contracts for the capacity of the Tennessee Gas Pipeline, a major Interstate Pipeline in the United States, and finds support for it. This analysis suggests that the uncertainty in the evolution of natural gas prices is an important driver of operational performance in the pricing of Pipeline capacity. The results of this paper have potential relevance for the pricing of the capacity of other commodity conversion assets.pricing and revenue management, operations management/finance interface, econometric analysis, petroleum/natural gas industries, real options
Juris Andrej - One of the best experts on this subject based on the ideXlab platform.
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Development of natural gas and Pipeline capacity markets in the United States
2024Co-Authors: Juris AndrejAbstract:Deregulation of the U.S. natural gas industry has been under way since the late 1970s. The industry was deregulated to create competitive markets in natural gas and its Pipeline transportation, in the expectation that competition would guide transactions toward a more efficient outcome. The author provides an overview of the deregulation process and its effect on the development and functioning of natural gas and gas transportation markets in the United States. He analyzes the trading of Pipeline capacity in primary and secondary markets and the regulation of Pipeline transportation, identifies mechanisms that Pipeline companies use to coordinate bilateral transactions, and summarizes deregulation's main achievements in the U.S. natural gas industry. Industry achievements in the past 15 years show that expectations were not realistic. The United States enjoys a highly competitive Interstate transportation market. Both markets have benefited from the deregulation of natural gas production and marketing and the liberalization of natural gas prices. Introducing open access to Interstate Pipelines and their unbundling from gas sales has allowed end users to participate in the efficiency gains in upstream markets. All this has contributed to declining retail prices for all major consumer categories. Deregulation is far from complete, however. Current regulation of Interstate Pipeline companies and the secondary transportation market does not promote efficient allocation of transportation contracts. Flexible pricing of transportation contracts should be introduced in both the primary and secondary transportation markets. But deregulation of retail markets remains the most important task and the bigger challenge facing industry regulators. Small-volume end users (such as residential or commercial customers) are captive to local distribution utilities, without access to competitive wholesale markets. All end users should be able to choose a natural gas supplier and receive natural gas at the minimum cost to society.Oil&Gas,Water and Industry,Markets and Market Access,Economic Theory&Research,Environmental Economics&Policies,Transport and Environment,Water and Industry,Oil Refining&Gas Industry,Oil&Gas,Carbon Policy and Trading
