Natural gas trading: Molecules or information?
- BP Gas, Inc., Houston, TX (United States)
Decision-making in the natural gas industry is multi-faceted and complex. Successful decisions require a vast array of critical information on a {open_quotes}real-time{close_quotes} basis. Each of the industry segments; producer, trader, pipeliner and end-user have different agendas which dictate the content and time-importance of each information data set. The period prior to FERC`s Order 636 was characterized as consisting of low to moderate transaction volumes, automation and skills base. The emergence of a {open_quotes}spot{close_quotes} market evolved the transaction process from a simplistic sequence to a complex set of steps involving multiple participants. The advent of natural gas futures trading fostered the need for real-time access to reliable market intelligence. Escalating information requirements, buyers` changing time horizons, and initial development by the pipelines of electronic information transfer all contributed to the need for more efficient data exchange. The Post-636 era will present new opportunities as pipelines unbundle their service structures. All segments of the industry will face new challenges in simplifying the way natural gas is bought, sold, priced, delivered and accounted for. A conceptual framework which might provide an alternative is that of the full-service {open_quotes}Gas Company{close_quotes}. The final {open_quotes}winners{close_quotes} in the gas game will be proactive in becoming the low-cost service provider. To a great extent, their success will depend on how effectively they are able to {open_quotes}trade{close_quotes} information.
- OSTI ID:
- 171680
- Report Number(s):
- CONF-931097--
- Country of Publication:
- United States
- Language:
- English
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