Natural gas markets and lessons learned / E. K. Cho, editor.

Format:

Book

Contributor:

Cho, E. K.

Series:

Energy Policies, Politics and Prices

Energy politicies, politics and prices

Language:

English

Subjects (All):

Gas industry--United States.

Gas industry.

Gas industry--Prices--United States.

Energy consumption--United States.

Energy consumption.

Gas industry--Government policy--United States.

Physical Description:

1 online resource (154 p.)

Edition:

1st ed.

Place of Publication:

New York : Nova Science Publishers, c2010.

Language Note:

English

Summary:

Natural gas markets in North America had a tumultuous year in 2008. This contrasted with the relative stability of 2007. In early 2008, the market tightened and prices moved up. In the summer, supply area spot prices went much higher than in the past, then decreased through the rest of the year to end lower than at the start of the year. This book examines current conditions and trends in the U.S. natural gas markets. Key market elements examined include prices, consumption, production, imports and infrastructure. Expectations about the future, are also discussed here.

Contents:

Intro

NATURAL GAS MARKETS AND LESSONS LEARNED

CONTENTS

PREFACE

Chapter 1 2008 STATE OF THE MARKETS REPORT

EXECUTIVE SUMMARY AND OVERVIEW

SUMMARY OF MARKET OUTCOMES

Physical Fundamentals Alone Cannot Explain Unprecedented Summer Natural Gas Prices

Supply

Demand

U.S. Gas Balance

Storage Inventories

Natural Gas Market Dynamics

Production

Infrastructure

Liquefied Natural Gas

Financial market turmoil started to affect energy markets as early as July

Financial Products and Financial Institutions as Energy Market Participants

Prominence of Financial Energy Products

Change in Financial Volumes

Role of Financial Entities

COST AND ACCESS TO CAPITAL AND CAPITAL EXPENDITURES

Access to and Cost of Capital

Reduction in Capital Expenditures

Economic Activity and Energy Consumption

ELECTRICITY MARKET OUTCOMES DRIVEN LARGELY BY EXTERNAL MARKET FORCES

Price Outcomes and Dispatch Order

FTR Valuations

Wind Generation

Generation Additions and Cost of New Generation

EMERGENCE OF ALTERNATIVE ENERGY

Effects of Credit Crisis and Economic Downturn on Wind Generation

Ancillary Services and Demand Response

Renewable Portfolio Standards

TRANSPARENCY EFFORTS BEAR FRUIT

ORGANIZATION OF THIS REPORT

SECTION 1. NATURAL GAS MARKETS IN 2008

Introduction

Physical Fundamentals

Prices

U.S. Supply-Demand Balance

Supply-Demand Balance

Storage Remained Close to Five-Year Average for Most of 2008

Financial Fundamentals

Connection Between Physical and Financial Natural Gas Prices

Key Financial Fundamentals

Conclusion

SECTION 2. UNCONVENTIONAL NATURAL GAS SUPPLY

The Expanding Natural Gas Resource Base

Costs

Issues Affecting Development.

SECTION 3. COST OF NEW GENERATION IN 2008

Physical Construction Costs in 2008

Credit Crisis

Energy Efficiency

SECTION 4. PHYSICAL AND FINANCIAL BILATERAL ELECTRICITY TRADING

Bilateral Trading 2008 Highlights

Bilateral Trading Mechanics and Reporting

Continued Wholesale Power Declines

Exit of Financial Institutions, Marketers Drives EQR Volumes Down

Regional Characteristics of Wholesale Power Trading

Eastern RTOs

Western States

Southeast States

Growing Prominence of Financial Electricity Products

The Rise

The Fall

Changes in the Term Structure for Financial and Physical Power

Financial Products

Physical Products

SECTION 5. RTO/ISO CAPACITY MARKETS

Capacity Markets in Action in 2008

ISO-NE's Forward Capacity Market

Use of New Demand Response and Energy Efficiency to Meet Load Forecast

PJM's Reliability Pricing Model

Increase in Supply Commitments and Lower Forecast Load Due to the Exclusion of Duquesne Load

NYISO's Installed Capacity Market

NYISO ICAP Market Prices Fell in 2008 Following New Mitigation Measures and Adjusted Load Capacity Requirements

SECTION 6. NATURAL GAS CAPACITY RELEASE AND ELECTRICITY TRANSMISSION REASSIGNMENT

Summary of Pipeline Capacity Release Postings

Volume

Term

Geographic Concentration

Releasing Shippers

Summary of EQR Capacity Reassignment Filings

Capacity Reassignment Sales

Duration of Transmission Capacity Reassignment Transactions

Geographic Dispersion of Transmission Capacity Reassignment Transactions

Price of Transmission Capacity Reassignments Relative to Tariff Rates

SECTION 7. INFRASTRUCTURE ADDITIONS EASE GAS GRID CONGESTION AND ALTER TRANSPORTATION DIFFERENTIALS

Regional Analysis

Gulf - Ohio Valley Corridor.

Rockies - Midwest Corridor

East Texas - Southeast Corridor

ACKNOWLEDGMENTS

End Notes

Chapter 2 NATURAL GAS MARKETS: AN OVERVIEW OF 2008

SUMMARY

INTRODUCTION

BACKGROUND

MARKET CONDITIONS

An Anomalous Price Pattern

Consumption

SUPPLY

MARKET TRENDS

Strong Production

Seasonality

Gas-for-Power Use

Industrial Gas Use

Global LNG Trade

Infrastructure Progress

FORECASTS

UNCERTAINTIES

Weather

Oil Prices

Economy

CONCLUSION

APPENDIX A. SELECTED STATISTICS

APPENDIX B. ACRONYMS

INDEX

Blank Page.

Notes:

Description based upon print version of record.

Includes bibliographical references and index.

Description based on print version record.

ISBN:

1-61122-455-1

OCLC:

676837702