Natural gas pricing: an economic analysis of new gas price deregulation with emphasis on the interstate and Texas intrastate markets
The model uses US and Texas natural gas supply information generated by The Energy Institute at the University of Houston. The demand estimates for natural gas at the wellhead are generated by the Governor's Energy Advisory Council, using price elasticities estimated in noted studies of demand for natural gas and electricity by final consumers. The wellhead demand is determined by first identifying how changing wellhead prices of natural gas affect the delivered prices to different final consumer categories, and then using the estimated price elasticities to determine the change in the quantities demanded by these final consumer categories. The wellhead demand curves are first derived for 1975, based on the elasticity estimates from other studies, and published data on the quantities demanded by each customer class at the delivered prices faced in 1975. The demand curves are then projected forward to each forecast year, under varying assumptions about the growth in the number of consumers in each demand category and the intensity of their use of natural gas. For each year, the supply and demand curves are combined to estimate the market clearing price of new natural gas and the quantities of gas consumed by each customer class. Alternative deregulation cases are examined by modifying the parameters used in projecting demand curves forward to the forecast years. Sixteen separate deregulation cases are examined, representing the possible combinations of four separate policies, each having two positions, under the general heading of new gas price deregulation.
- Research Organization:
- Texas Governor's Energy Advisory Council, Austin (USA)
- OSTI ID:
- 6929411
- Report Number(s):
- NP-4900936; ON: DE84900936
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
29 ENERGY PLANNING
POLICY AND ECONOMY
NATURAL GAS
MARKET
PRICES
TEXAS
ECONOMIC POLICY
ENERGY POLICY
DEREGULATION
FORECASTING
MATHEMATICAL MODELS
ENERGY SOURCES
FEDERAL REGION VI
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
GOVERNMENT POLICIES
NORTH AMERICA
USA
030600* - Natural Gas- Economic
Industrial
& Business Aspects
294003 - Energy Planning & Policy- Natural Gas
292000 - Energy Planning & Policy- Supply
Demand & Forecasting
290200 - Energy Planning & Policy- Economics & Sociology