With the recent shale gas boom, the U.S. is expected to have very large natural gas resources. In this respect, the key question is would it be better to rely completely on free market resource allocations which would lead to large exports of natural gas or to limit natural gas exports so that more could be used in the U.S.. After accounting for the cost of liquefying the natural gas and shippi...

I use daily futures price data to examine the behavior of natural gas and crude oil price volatility in the U.S. since 1990. I test whether there has been a significant trend in volatility, whether there was a short-term increase in volatility during the time of the Enron collapse, and whether natural gas and crude oil price volatilities are interrelated. I also measure the persistence of shock...

We propose and estimate fundamental models for natural gas prices. We compare how well these models, as well as univariate statistical time series models of NG prices and the NYMEX futures price for natural gas, forecast spot gas prices. We find that a univariate time series model that incorporates fundamental variables related to production, storage, weather, and aggregate output performs best...

This paper examines a California-based microgrid’s decision to invest in a distributed generation (DG) unit fuelled by natural gas. While the long-term natural gas generation cost is stochastic, we initially assume that the microgrid may purchase electricity at a fixed retail rate from its utility. Using the real options approach, we find a natural gas generation cost threshold that triggers DG...

We consider the relationship between natural gas prices and production in the U.S. resins, agricultural chemicals, cement, and aluminium industries. Overall, our analysis using various tests and regressions does not allow for generalizations about the association between natural gas prices and production across these four energy-intensive industries. Rather, the relationships between natural ga...

In Beijing, China, the rational consumption of energy is affected by the insufficient linkage mechanism of the energy pricing system, the unreasonable price ratio and other issues. This paper combines the characteristics of Beijing’s energy market, putting forward the society-economy equilibrium indicator R maximization taking into consideration the mitigation cost to determine a reasonable pri...

Although electricity market price behavior generally has been well studied in the last decade, the literature is sparse when discussing the importance of generator ramping costs to price volatility. This paper contributes to the literature by first formalizing the intuitive link between ramping costs and price volatility in a multi-period competitive equilibrium. The fundamental result of the m...

In this article, the U.S. and southern Canadian natural gas supply market is considered. An important model for oil and natural gas supply is the Hubbert curve. Not all regions of the world are producing oil or natural gas following a Hubbert curve, even when price and market conditions are accounted for. One reason is that institutions are affecting supply. We investigate the possible effects ...

The regulated price policy may be implemented for some products. It is generally implemented for some products such as electricity, natural gas, water and so on that are supplied as monopolist. The regulated price shock on these products may lead to an adjustment in the endowments of primary factors. The aim of this paper is to investigate the effects of a regulated price shock on price indices...