Original Commissioned Research
Task Force on Ensuring Stable Natural Gas Markets
View the full Task Force Report here.
Appendix – Commissioned Papers
M.J. Bradley & Associates, LLC
The report draws lessons from markets in the U.S., Europe, and Asia to determine (1) how natural gas markets are structured in the largest consuming regions of the world, (2) the effect that exposure to natural gas prices has had on corporate performance, and (3) how natural gas price movements relate to those of other commodities.
This paper defines the objectives and elements of long-term contracts; traces the evolution of natural gas contracts; assesses the economic value of long-term contracts; analyzes the relationship between long-term contracts and natural gas price stability; and examines natural gas contracts for regulated entities.
Steve H. Levine and Frank C. Graves
The Brattle Group
This paper describes gas market risk characteristics; identifies risk management principles and tools for managing price volatility; describes risk management processes and controls, and analyzes limitations in managing price volatility; and compares industry hedging practices.
How might water availability challenges constrain efforts to expand shale gas production? This memo summarizes the main water impacts associated with shale gas development in order to address this central question.
Navigant Consulting, Inc.
This paper examines the history of chronic natural gas price instability across three periods from 1976-2010, and identifies fundamental changes in supply and demand that could influence natural gas markets going forward.
Rice University’s James Baker Institute for Public Policy
This paper seeks to answer central questions about LNG and market globalization: What are the potential impacts of North American LNG imports and exports on natural gas price volatility? Given the relative abundance of shale gas in North America, is there any reason to believe that LNG imports will rise in the coming years? In the US, how do LNG, the domestic shale gas resource, and domestic storage interact? If there are any potential adverse impacts of globalized gas trade and increased LNG imports, are there policy options available to mitigate the adverse impacts?
Stephen Brown and Alan Krupnick
Resources for the Future
This paper examines the extent to which natural gas prices are likely to remain attractive to consumers. The authors examine how the apparent abundance of natural gas and projected growth of its use might affect natural gas prices, production and consumption, using NEMS‐RFF to model a number of scenarios through 2030.
Bente Villadsen and Fiona Wang
The Brattle Group
An overview of FASB accounting rules and their implications for natural gas contracts; normal purchases and sales exemption and fair value accounting treatment of natural gas contracts.
Jennifer Macedonia and Lourdes Long
A background on the MACT Standards and the results of BPC modeling to analyze the impacts of the MACT rule on electric utility generation and natural gas demand.