Convergence of natural gas and electricity industries means change, opportunity for producers in the U. S
- RCG/Hagler, Bailly Inc., Arlington, VA (United States) Jefferson Gas Systems Inc., Arlington, VA (United States)
The accelerating deregulation of natural gas and electricity distribution is the third and most powerful wave of energy deregulation coursing through North America. The first wave (1978--92) provided the impetus for sculpting competitive markets in energy production. The second (1986--95) is now breaking to fashion competitive bulk logistical and wholesale consumption markets through open access on and unbundling of gas pipeline and storage capacity and high voltage transmission capacity. The third wave, the deregulation of gas and electric retail markets through open access and nondiscriminatory, unbundled local gas and electric distribution tariffs, began in the early 1990s. It will gather momentum for the next 5 years and crest at the turn of the century, affecting and molding almost $300 billion/year in retail energy sales. The transformation will have these strategic implications: (1) the convergent evolution of the gas and electric industries; (2) severe margin compression along the energy value chain from wellhead to busbar to the distribution pipes and wires; and (3) the rapid emergency of cyberspace retailing of energy products and services. The paper discusses merchant plants, convergence and producers, capital flows, producer federations, issues of scale, and demand, margins, and value.
- OSTI ID:
- 6583976
- Journal Information:
- Oil and Gas Journal; (United States), Vol. 93:11; ISSN 0030-1388
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
POLICY AND ECONOMY
NATURAL GAS DISTRIBUTION SYSTEMS
DEREGULATION
POWER DISTRIBUTION SYSTEMS
COMPETITION
COOPERATION
ECONOMICS
FOSSIL-FUEL POWER PLANTS
FUEL SUBSTITUTION
INVESTMENT
NATURAL GAS
SERVICE SECTOR
SIZE
ENERGY SOURCES
ENERGY SYSTEMS
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
POWER PLANTS
THERMAL POWER PLANTS
294003* - Energy Planning & Policy- Natural Gas
296000 - Energy Planning & Policy- Electric Power