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Task Force on Ensuring Stable Natural Gas Markets

View the full Task Force Report here.

Appendix – Commissioned Papers

Natural Gas Price Volatility: Lessons from Other Markets

Austin Whitman

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.

Long-term Contracting for Natural Gas

Bruce Henning

ICF Consulting

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.

Managing Natural Gas Price Volatility: Principles and Practices Across the Industry

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.

Staff Memo: Water Impacts Associated with Shale Gas Development

Lourdes Long

BPC Staff

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.

Introduction to North American Natural Gas Markets: Supply and Demand Side Drivers of Volatility Since the 1980s

Rick Smead

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.

Impact of LNG and Market Globalization

Ken Medlock

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?

Abundant Shale Gas Resources, Short-Term Volatility, and Long-Term Stability of Natural Gas Prices

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.

FASB Accounting Rules and Implications for Natural Gas Purchase Agreements

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.

Staff Memo: The Impact of EPA Utility MACT Rule on Natural Gas Demand

Jennifer Macedonia and Lourdes Long

BPC Staff

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.