Chesapeake Energy Corporation Is The Second Largest...

Chesapeake Energy Corporation Is The Second Largest...
The Companies
Chesapeake Energy Corporation is the second–largest producer of natural gas and the tenth–largest
producer of liquids in the United States. It owns interests in approximately 46,800 natural gas and
oil wells that produced a net interest average of approximately 665 mboe per day in the 2013 fourth
quarter. The company has a large and geographically diverse resource base of onshore U.S.
unconventional natural gas and liquids assets. It also owns substantial marketing, compression and
oilfield services businesses.
Cabot Oil & Gas Corporation is an independent oil and gas company engaged in the development,
exploitation and exploration of oil and gas properties. Its assets are concentrated in areas with
known hydrocarbon resources conducive to multi–well, repeatable drilling programs. It operates in
one segment, natural gas and oil development, exploitation, exploration and production, with all
located in the continental U.S. Cabot is the thirteenth largest producer of natural gas in the U.S.
In addition to the competition between the two firms addressed, fierce competition exists from other
oil and gas producers, particularly ExxonMobil, the number one producer of natural gas in the
United States.
Macroeconomic Risks
Both Chesapeake's and Cabot's revenues, operating results, financial condition and ability to obtain
outside capital depends substantially on prevailing prices for natural gas and oil. Lower commodity
prices may reduce the amount of natural gas and
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Epa 's New Clean Power Plan
Industry Conditions
Introduction
Consol Energy is heavily involved in two major industries: coal and natural gas. This is an
interesting situation given that the two industries directly compete against one another. As a result,
Consol is diversified and strategically projected against the risk of downturn in either profit stream.
Coal Industry
The coal industry has a gloomy economic forecast moving forward. Perhaps the greatest immediate
uncertainty the industry faces is the EPA's new Clean Power Plan (CPP). Proposed in June 2014
under Section 111(d) of the Clean Air Act, the plan includes ambitious CO2 reduction targets for
each state, designed to achieve by 2030 a 30 percent nationwide decrease in CO2 emissions over
2005 levels. The ... Show more content on Helpwriting.net ...
Projected rising electricity demand and higher natural gas prices next year are expected to contribute
to higher utilization rates among the remaining coal–fired power plants, while they stay in
operations for the time being.
The coal industry has been struggling. The fall in prices which was initially thought to be temporary
has persisted, and due to a similar over–production of supply, coal continues to decrease in value.
Years of buildup in the mining capacity have forced global coal prices to tumble and there's little
hope that the industry will be back firmly to its knees. Slower growth in world coal demand, lower
international coal prices, and higher coal output in other coal–exporting countries have all led to a
decline in U.S. coal exports. Lower mining costs, cheaper transportation costs, and favorable
exchange rates will continue to provide an advantage to mines in other major coal–exporting
countries compared with U.S. producers. One of the largest economies in the world, China, has
experienced decrease in demand for coal. There is just too much of an over–supply going on
internationally in the year 2015. The EIA expects a 7% decrease in total coal consumption in 2015.
As such, coal production is expected to decrease in all coal–producing

Europe 's Dependence On Russia
Europe faces a number of challenges when addressing its future energy needs. Increasing global
demand and competition for energy resources, instability in energy producing regions such as the
Middle East, and a population increasingly concerned with climate change are all challenges facing
Europe. As a result, energy security has become a critical issue for the European Union (EU).
To address some of these issues, Europe has turned to natural gas. Collectively, Europe is a major
importer of natural gas, and Russia is one of Europe's most important natural gas suppliers. Natural
gas consumption in Europe is going to continue to grow, especially as climate change issues become
more prominent. Yet, domestic natural gas production is likely ... Show more content on
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to export LNG the European Union, specifically Germany, as a way to replace Russian natural gas
in a time of crisis? If so, would either party need to build out infrastructure to accommodate U.S.
LNG exports? What effect would U.S. LNG exports have on global natural gas supplies and prices?
The remainder of this paper will be structured as follows. The first section will outline Europe's, and
more specifically Germany's, natural gas needs and how much U.S. LNG would need to be exported
to replace German imports of Russian natural gas. Following that, a review of the current European
capacity and infrastructure will show that the E.U. could receive U.S. LNG in a crisis. After that, I
will examine the U.S.' LNG infrastructure and export policy. I will argue that the problem with U.S.
LNG exports to Europe is not due to a lack of capacity or infrastructure, but rather dated export
policy. To be effective in providing energy security to the E.U. in a crisis, the U.S. will need to make
policy changes. Finally, given that the U.S. will soon begin exporting LNG, the last section will
analyze what effect U.S. exports will have on the global natural gas supply and the effect of non–
crisis European demand for Russian natural gas.
European Natural Gas Needs
First, how much natural gas does Europe import from Russia? European dependence on gas varies
by country. In 2013, roughly 33 percent of Italy's energy needs are met with imported natural gas,
and Germany was

The Key Differences Between the Natural Gas Markets in...
The key differences between the natural gas markets in Asia, Europe and North America November
2012
Table of Contents
Summary 3
Overview 4
Conclusions 8
References 9
Summary
The major difference of the natural gas market, which sets it apart from the truly global oil market,
is that the former has historically been developed with respect to the regional supply bases. This was
primarily defined by existing technology for natural gas transportation and availability of other
energy resource: primary oil and coal. ... Show more content on Helpwriting.net ...
Table 1: Natural gas market balance for North America
Source: BP Statistical Review of World Energy 2012 Most of the natural gas transportation in the
USA is done through 305,000 miles of transmission pipelines. Existing LNG degasification facilities
allow for limited international trade of LNG (Table 2). Due to free market pricing when natural gas
cost less in summer period, gas–storing facilities are widespread over the country including more
than 400 underground storages and 113 LNG peaking facilities (EIA, 2008). Table 2: Natural gas
trade in North America
Source: BP Statistical Review of World Energy 2012 With the carbon emission regulations recently
introduced by US government, natural gas is the most likely substitution to coal for electricity
generation for years to come. Latest price reductions made natural gas from a cost perspective much
more attractive than coal. Recent spike in US and Canada shale gas production have reduced the
prices in the region to historical minimum of less than $4/MMBtu, a half of the price for Europe and
five times less the price for China or Japan. This difference in prices has raised huge interest to
export of LNG from USA to Asian market. Out of country's total 11 LNG

Vietnam Gas Industry
THE BROOKINGS INSTITUTION
CENTER FOR NORTHEAST ASIAN POLICY STUDIES
POLICY SUGGESTIONS FOR THE INITIAL
DEVELOPMENT OF VIETNAM'S GAS INDUSTRY
Hai Tien Le
CNAPS Visiting Fellow, Vietnam, Spring 2010
Director, Research Centre for Petroleum Economics and Management
Vietnam Petroleum Institute
September 2012
THE BROOKINGS INSTITUTION
1775 Massachusetts Avenue, NW
Washington D.C. 20036–2188
Tel: (202)797–6000 Fax: (202)797–2485 http://www.brookings.edu Abbreviations
BCM
BTU
Government
LNG
LPG
MOIT
Mtoe
MW
MBBTU
MMBTU
MMCM
PVN
PVEP
PVGas
SCM
USD / US$
TCM

VND
Billion cubic meters
British thermal unit
Government of Vietnam
Liquefied natural gas
Liquefied petroleum gas
Ministry of Industry and ... Show more content on Helpwriting.net ...
These principles are borrowed from "An Introduction to the Gas Sector," The World Bank, Vietnam
Gas
Sector Mission, January 7–8, 2009, page 84.
2
Policy Suggestions for Vietnam's Gas Industry
Hai Tien Le
CNAPS Visiting Fellow Working Paper
3
Vietnam's gas policy should address and looks at a number of possible solutions. Finally, the paper
concludes with some overall comments regarding gas policy in Vietnam.
II. Overview of Vietnam's gas industry
Natural gas is a critical source of energy for Vietnam, and it plays an important role in the nation's
energy economy. BMI reports that natural gas is the second biggest primary energy provider,
accounting for 18 percent of the nation's energy, followed by coal and hydroelectric power. It is
expected that the use of gas will increase to account for 31 percent of Vietnam's primary energy
demand, and oil demand will be down to 38 percent. 3
Vietnam's natural gas industry has developed a long way from its initial small onshore field located
in Thai Binh province, south of Haiphong, in the 1970s. Today there are three major reserve basins
located in southern Vietnam – Cuu Long, Nam Con Son, and
Malay–Tho Chu – which supply the power generation and fertilizer projects currently under
operation.
The modern natural gas industry was born in 1995, with the production of associated gas from the
Bach Ho oil field to the Ba Ria Power Plant, which had an

Fracking Essay
The Result of Fracking on the Natural Gas Industry
Introduction
Hydraulic fracturing otherwise known as fracking has flooded the market with cheap and reliable
natural gas to the exportation and power production markets all while being limited by logistics.
Emspak, J. (2014, August 12) shows that natural gas production by fracking has expanded gas
production by 32 times the amount in 2008. This lowered the cost 40% over that span of time. The
demand for clean cost efficient power production shifted production from coal fired to natural gas
plants. From 20015–20017 about nine thousand natural gas power plants were built says the U.S.
Energy Information Administration. (2017). This correlates to about one half of a million more
megawatts of ... Show more content on Helpwriting.net ...
While this is great to the consumer, the renewable sector's growth was more stagnant. Attention was
diverted to use another greenhouse producing fossil fuel rather than a clean renewable. A trend in
U.S. Energy Information Administration's (2017) data showed renewable sector's power production
since 2008 grew only 5.7% as compared to natural gas production 18%. Another disadvantage to the
diversion from renewables is the additional carbon dioxide generated from these additional plants
operating. "About 24 percent of U.S. carbon dioxide emissions are related to natural gas in 2011"
(Natural gas prices. (n.d.)). The replacement of coal–fired power plants with natural gas has let to a
decrease of the green house gases, mainly particulate matter and sulfur dioxide emissions. "Sulfur
dioxide (SO2) emissions produced in the generation of electricity at power plants in the United
States declined by 73% from 2006 to 2015, a much larger reduction than the 32% decrease in coal–
fired electricity generation over that period." U.S. Energy Information Administration (2017). This
shows that more efficient control equipment can be used to almost eliminate the trace amounts of
sulfur dioxide in natural gas.
The Oak Ridge National Laboratory found the following:
Power plants are the largest source of SO2 emissions in the United States, accounting for 64% of
economy–wide SO2 emissions in 2014. Power plants

Pakistan Energy Outlook
Pakistan Energy Outlook (2010/11 to 2025/26)
Executive Summary
Pakistan's energy sector is in a state of crisis and over the past few years has negatively impacted the
social and economic development of the country.
Primary energy consumption in Pakistan has grown by almost 80% over the past 15 years, from 34
million tons oil equivalent (TOEs) in
1994/95 to 61 million TOEs in 2009/10 and has supported an average GDP growth rate in the
country of about 4.5% per annum.
However since 2006/07 energy supply has been unable to meet the country's demand leading to
shortages. Meanwhile per capita energy consumption in Pakistan at under 0.5 TOEs/capita remains
only one–third of world average.
Indigenous natural gas is ... Show more content on Helpwriting.net ...
hed, with a single natural gas price for all volumes Blueprint # 2 – Restructuring of the Natural Gas
Sector
Issues
The state–controlled natural gas sector is being used for political leverage, resulting in over–
commitment of gas supply leading to natural gas shortages
Increasing natural gas theft is reaching alarming proportions
Recommendations
The existing gas utilities be unbundled and a single statecontrolled natural gas transmission
company be created for transmitting gas on an open–access basis
Natural gas distribution & marketing be privatized to multiple gas companies to provide
improved business discipline and customer management
A competitive gas market be created with de–regulated prices and open–access to the gas
distribution grids for third–party gas suppliers Natural gas theft be declared a "non–bailable offence"
with a high penalty Blueprint # 3 – Dynamic Exploration & Production (E&P)
Issues
Gas price incentives for the E&P sector in Pakistan are not attractive enough for major new
investments to be undertaken
Security issues & uncertainty in continuity of E&P policies by successive governments are
barriers for major E&P investments Recommendations
E&P sector be progressively de–regulated and, as a first step, be allowed to sell new natural gas
discoveries at market–based pricing E&P sector be able to sell natural gas directly to
consumers

The Natural Gas Price Of Gas
There are various reasons that prediction of natural gas price is imperative to producers, suppliers,
traders, market makers, and bankers involved in natural gas exploration, production, transportation
and trading as well as consumers involved in utilization of natural gas (Mishra, 2012). The prices of
energy commodity including natural gas price are very volatile that make the parties engaged in a
high risk and uncertain activities. More accurate forecast of the price, help them to select an
appropriate strategy to lower the uncertainty and hedge the risk. This research attempt to find the
best way to model and forecast natural gas price among different approaches and choose the
optimum practice to use.
The natural gas price is also important in evaluation of gas reserves (Caldwell & Heather, 1996).
The price of gas has huge effect on the value of the reserves which is a massive part of Gas
Company's assets. Fluctuation in gas price make an oscillation in company's value that increase the
investment risk which results a decrease in company's stock price.
1.1. What is Natural Gas
Natural gas (also called marsh or swamp gas in older texts and more recently Landfill gas) is a
combustible mixture of gaseous hydrocarbons consisting of methane as a major component and
heavier hydrocarbons including ethane, propane, butanes, and very small amount of pentanes or
heavier components (Speight, 2007). The natural gas mixture also includes the unsaturated
hydrocarbons such as

Natural Gas
Natural Gas Natural gas is another means of energy source that provides heating and electricity to
many individuals. It is a natural mixture of methane, carbon dioxide, nitrogen and hydrogen sulfide.
Natural gas was first found back in 1626 when the French found the natives lighting gas seeping in
and out of the ground around Lake Erie. When natural gas was first introduced into civilization as a
means of energy source it was not efficient nor was it environmentally friendly. It was first in the
United States in Baltimore, Maryland in 1816 when it was used to light the street lamps. The first
well that was dug for Natural Gas purposes was in 1821 in Fredonia, New York by William Hart. He
is known as the "father of natural gas: in ... Show more content on Helpwriting.net ...
.65 | 1.61 | 1.55 | 1.58 | 1.66 | 1.92 | | 1990 | 2.23 | 1.85 | 1.55 | 1.49 | 1.47 | 1.48 | 1.49 | 1.51 | 1.56 |
1.76 | 1.94 | 2.04 | 1991 | 1.96 | 1.62 | 1.49 | 1.50 | 1.48 | 1.43 | 1.34 | 1.43 | 1.59 | 1.82 | 1.89 | 2.00 |
1992 | 1.74 | 1.26 | 1.35 | 1.42 | 1.51 | 1.62 | 1.55 | 1.84 | 1.92 | 2.38 | 2.13 | 2.07 | 1993 | 2.03 | 1.76 |
2.00 | 2.06 | 2.18 | 1.98 | 1.99 | 2.04 | 2.09 | 2.02 | 2.03 | 2.15 | 1994 | 1.93 | 1.88 | 1.93 | 1.91 | 2.00 |
1.80 | 1.81 | 1.83 | 1.78 | 1.70 | 1.75 | 1.88 | | 1995 | 1.62 | 1.48 | 1.47 | 1.52 | 1.55 | 1.58 | 1.43 | 1.43 |
1.52 | 1.54 | 1.61 | 1.84 | 1996 | 2.05 | 1.89 | 1.95 | 2.08 | 2.01 | 2.08 | 2.25 | 2.10 | 1.85 | 1.94 | 2.50 |
3.26 | 1997 | 3.40 | 2.49 | 1.79 | 1.81 | 2.00 | 2.08 | 2.00 | 2.08 | 2.33 | 2.68 | 2.92 | 2.28 | 1998 | 1.96 |
1.96 | 2.06 | 2.16 | 2.04 | 1.91 | 2.09 | 1.82 | 1.70 | 1.86 | 1.94 | 1.95 | 1999 | 1.85 | 1.77 | 1.70 | 1.90 |
2.17 | 2.14 | 2.20 | 2.51 | 2.62 | 2.52 | 2.68 | 2.24 | | 2000 | 2.60 | 2.73 | 2.66 | 2.86 | 3.04 | 3.77 | 3.84 |
3.73 | 4.26 | 4.58 | 4.40 | 5.77 | 2001 | 6.82 | 5.08 | 4.37 | 4.52 | 4.36 | 3.79 | 3.35 | 3.33 | 2.93 | 2.78 |
3.41 | 3.42 | 2002 | 2.50 | 2.19 | 2.40 | 2.94 | 2.94 | 2.96 | 2.92 | 2.76 | 2.97 | 3.24 | 3.59 | 3.96 | 2003 |
4.43 | 5.05 | 6.96 | 4.47 | 4.77 | 5.41 | 5.08 | 4.46 | 4.59 | 4.32 | 4.26 | 4.76 | 2004 | 5.21 | 5.02 | 5.12 |
5.03 | 5.40 | 5.82 | 5.62 | 5.52 | 5.06 | 5.43 | 6.21 | 6.01 | | 2005 | 5.80 | 5.73 | 5.95 | 6.57 | 6.25

Energy Resource: Natural Gas and Solar Energy Essay
My two topics that I will be talking about are Natural Gas and Solar Energy. Natural gas is a
nonrenewable resource and pretty soon we are going to have to learn how to do without it. Solar
energy will always be around. It's not very major now but in a few years I'm sure it will be.
Natural gas is a mixture of Hydrocarbon gases that form with a petroleum deposit. A hydrocarbon is
a compound that's mostly made up of Hydrogen and Carbon. Natural gas is methane together with
some of ethane, propane, butane, and other gases, Methane is a potent greenhouse gas, and Ethane is
colorless and odorless. Natural gas is used as fuel and in the making of organic compounds. Natural
gas is also highly flammable. (The American Heritage Dictionary, 2009) ... Show more content on
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There are so many ways that we use natural gas. (NaturalGas.org, 2011)
Natural gas is made up of just the two elements, Carbon and Hydrogen. All of the natural gas we use
today began as microscopic plants and animals living in the ocean. As they become buried ever
deeper, heat and pressure begin to rise. Natural gas deposits migrated until they were caught under
impermeable layers of rock or clay, where they were trapped. ("Natural gas and," 2013)
Natural gas is made into energy when CPS Energy operates 14 gas units to complement its energy
generation efforts with coal, nuclear and renewable energy. The turbines suck in air, mix it with the
fuel and ignite a fireball. The hot gases from the fireball impact the blades of the turbine to cause
motion, creating mechanical energy. The generator converts the mechanical energy into electricity
before it is transmitted for customer use. (CPS Energy, 2013)
The importance of natural gas is to replace the role of oil in the economy. Natural gas is good for the
US because it can produce natural gas domestically. It has plenty of energy for use in people's
homes and in industry. It will help the US economy cope with the depletion of peak oil production.
Crude oil is nearly three times as expensive as Natural gas. (Pipeline, 2009–2013)
The IEA expects global demand for natural gas to hit 4.75 trillion cubic meters by 2035. If we keep
using natural gas how we do, we will have

Russia China Energy Relations : A Comprehensive Overview...
Russia–China Energy Relations: A Comprehensive Overview
The future of Russia–China engagement and competition in the energy sector will largely depend on
Russia's ability to maximize its strategic and economic position in the Asia–Pacific region.
Northeast Asia is home to China and Japan – the world's second and third largest economies by
GDP, respectively – and also "boasts half the world's population [and] includes many of the key
engines of the global economy, as well as the largest emitters of greenhouse gases," prompting then–
U.S. Secretary of State Hillary Clinton to proclaim in 2011 that "the future of politics will be
decided in Asia." Moreover, some of the most vital strategic and security challenges for Russia,
China, and other powers will play out in the Asia–Pacific region; North Korea borders Russia and
China and conducts regular provocations that may raise the risk to regional energy infrastructure,
and maritime hotspots increase the prospect of conflict.
Increasing demand for energy – particularly natural gas – from the major Asian economies will open
up tremendous opportunities for Russia to bolster its energy security by supplying oil and natural
gas to China, Japan, and Korea. At the same time, China's ever–increasing economic leverage and
Russia's high dependence on the energy sector means that depending primarily on the Chinese
market would weaken Russia's energy security. Russia should therefore continue to pursue a dual
track policy of engaging

Chesapeake Energy Is The Second Largest Producer Of...
Executive summary
Chesapeake Energy is the second largest producer of natural gas in United States. The company
invented horizontal drilling and proved to be an expert of unconventional drilling. Having the drive
and commitment to achieve great accomplishments Chesapeake managed to set operation efficiency
standard in the industry with their core values of integrity, trust and transparency.
Although having financial issues with acquiring more debt and less liquid capital, the company
managed to survive fluctuations of natural gas price and managed to innovate and apply other
methods of unconventional drilling. Chesapeake still has room for improvement. Cost management
and financial risk management can reduce debt greatly and provide ... Show more content on
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Aubrey McClendon and Tom L. Ward founded Chesapeake Energy in 1989. McClendon and Ward
graduated from college a decade before the oil industry skyrocketed. Seeing the potential
beforehand in natural gas exploration and production, McClendon and Ward started with 10
employees and $50,000 initial investment to drill reservoirs. The duo concentrated in horizontal
drilling and expanding its reserves. Its success grew rapidly due to findings of natural gas in south
Oklahoma, southeastern Texas and alongside Gulf Coast. Company completed its IPO and started to
offer shares in 1993 leading to Chesapeake Energy having the highest growth rate in the industry
between 1994 and 1996. However, success didn't last too long due to the collapse of natural gas
prices, company changed it strategy and focused only on natural gas production leaving sites in
Texas, Louisiana and coming back to Oklahoma to initiate its strategy. As the process of research
and development became costly, Chesapeake started to shape the industry because of their
commitment to horizontal drilling and exploring more reservoirs. In 2006, the company entered
S&P 500. Chesapeake Energy produces than 4 trilling cubic feet of natural gas as reported in 2014.
Goals, Vision/Mission, Constraints
Chesapeake goals focus on driving shareholder value with executing business strategies, disciplinary
finances with profitable and efficient growth from

Forecasting Natural Gas Prices
Forecasting natural gas prices using cointegration technique
Dr Salman Saif Ghouri
Abstract This paper uses Augmented Dickey–Fuller and Phillips–Perron technique for determining
whether individual crude oil prices (West Texas Intermediate, Brent, Japan crude cocktail) and
natural gas prices– Henry Hub (HH), National Balancing Point (NBP), European and Japanese
liquefied natural gas (LNG) prices are stationary or non–stationary. It then applies Johansen and
Juselius cointegration technique for establishing long–run correlation between respective oil prices
and natural gas prices. The paper concludes that all individual series pertaining to oil and natural gas
prices are non–stationary and indeed having long–run relationship, despite ... Show more content on
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Both buyers and sellers have a reasonable assurance that prices marked to HH or NBP are
competitive. In sharp contrast, Table 1 Regional pipeline natural gas trade (bn cu m) Regions North
America Europe Algeria Russian Federation Others 2004 121.78 154.17 34.32 148.44 43.35
December 2006
2006 Organization of the Petroleum Exporting Countries
251
Table 2 LNG trade movement, 2004 (bn cu m) Buyers/sellers Asia Pacific Africa Middle East
USA Trinidad & Tobago Total Asia Pacific 81.67 0.78 34.47 1.68 0 118.6 USA 0.99 3.74 0.61 13.13
18.47 40.02 Europe 0.18 34.45 5.39 0.86 0.86 C&S America Total 82.84 38.97 40.47 1.68 13.99
177.95
in a regulated market, there is no competition or transparency, this leads to different prices in the
same market. This paper examines the long–run relationship between natural gas/LNG prices in
different markets with those of respective crude oil prices using cointegration techniques
(Cuthbertson, Hall, 1992). The basic philosophy of cointegration technique is that two or more
variables may have long–run relationship if they move closely together in the long run, even though
they may have drifted apart in the short–run. This long run association is referred to as a
cointegrating vector. If there is a long run correlation between the variables, a regression containing
all the variables of a cointegrating vector will have a stationary error term, even if none of the
variables taken alone is stationary. Stock (1987) has

The Environment Protection Agency 's New Clean Power Plan
Introduction
Consol Energy is heavily involved in two major industries: coal and natural gas. This is an
interesting situation given that the two industries directly compete against one another. As a result,
Consol is diversified and strategically projected against the risk of downturn in either profit stream.
Coal Industry
The coal industry has a gloomy economic forecast going forward. The U.S. Environment Protection
Agency's new Clean Power Plan (a part of the Clean Air Act) causes much uncertainty for
corporations like Consol. It was proposed by the EPA in June of 2014. The goal of the Clean Power
Plan is to decrease CO2 emissions by 30 percent in the year 2030 from 2005 levels. Already, it has
had an impact on the internal ... Show more content on Helpwriting.net ...
Prices for coal are currently down. This drop has coincided with the drop in oil prices. Originally, it
was expected that these two prices would be tied together, and that the drop would be quite
temporary. However, the longer that coal has been down, the more likely it looks like it is down for
the count so to speak. Many analysts believe that there has been an over–production of coal in the
past decade and the market has been saturated as a result. With every passing month that coal's
prices stay low, and the supplies keep growing, it becomes less likely that things will turn around for
the better in a permanent manner. Even with the rest of the world playing catchup with the transition
to zero carbon–intensive energy sources, the U.S. coal exports have been extremely low. China, for
instance, has imported less in recent years. At one point, they were helping to drive our export
market. In response to the lower demand, many mining corporations have begun to optimize their
operations. This has been done by focusing on lower mining production costs, cheaper
transportation costs, and favorable exchange rates. The goal is to keep operations from further
declining profit–wise as the U.S. Energy Information Administration expects a 7% decrease in total
coal consumption for the year 2015. This decline in coal consumption will likely cause a decline in
coal production, causing a decline in jobs for states such as Wyoming, West Virginia, Kentucky,
Illinois, and

The Effect Of Unconventional Gas Expansion On Energy Economy
Section 8 &9
8. Effect of Unconventional Gas Expansion on Energy Economy
8.1 Methodology
The expansion of the unconventional gas production exhibits a number of uncertainties with regards
to the natural gas overall supply balance which in turn has a great impact on the energy economy in
general. In order to understand this effect, one must start to look in to the
1. Difference in trading between the main sources of energy: oil and Natural gas and how this
expansion is going to affect these methods of trading either negatively or positively.
2. The cost of production from unconventional gas resources and the future expected changes due to
development in technology. Adding to that the expected amount of production in the future.
Giving ... Show more content on Helpwriting.net ...
Asia uses crude oil as a benchmark for natural gas prices and favours long–term contracts. Japan
and Korea almost totally dependent on imported LNG. This dependence places a high premium on
security of supply and has kept prices in Asia high relative to other regions (Suárez, 2012).
Despite the two different trading methods between gas and oil, historically it has been noticed that
the trend in energy cost of both is following the same trend ignoring the price difference based on
trading model between the three pre–mentioned trading methods for Natural gas.
The fast recent development of production from unconventional gas resources mainly shale gas in
North America (United States and Canada) has interrupted this relationship.
Early in 21st century, North America was forecasted to require around 60 billion cubic feet/ year of
gas and since the resources at that time do not include the unconventional gas resources, this supply
was forecasted to be delivered from other countries including Qatar, Angola and Nigeria. A number
of export terminals were built on those countries. In addition, around 50 import terminals were
planned to be constructed in North America including Mexico, United States and Canada.
Figure 1 Left: US Natural gas production by source in the reference case (1990–2040, trillion cubic
feet), Right: US Total Natural gas production consumption and import in reference case

Natural Gas Is A Rapidly Growing Section Of The Economy
Natural gas is a rapidly growing section of the economy. With a recent boom in production, more
people are putting a focus on the resource. Although it has been around for centuries, it is relatively
new in terms of mass production and shipment, especially in mainstream American attention. 2008
saw a rapid growth in both production and price, which expanded the economy in many small towns
throughout the United States. But, only a few years later, the price dropped while production did
not, and the decline started. Now, natural gas production is in a state of surplus, with some reports
stating that prices will remain low. But, with the push towards diversified energy portfolios and
renewables, the test is to see if natural gas can ... Show more content on Helpwriting.net ...
This natural gas was used to light street lamps and lamps used in homes. After Britain started using
natural gas commercially, the practice grew worldwide. The first well that was specifically intended
to extract natural gas in the United States was created in New York by William Hart in 1821, when
he dug at 27 foot deep well.
In the 19th century, natural gas was used primarily for lighting. During this time period, the
efficiency of transporting natural gas was limited. In 1891 one of the first major pipelines was
constructed from Indiana to Chicago, but this pipeline was not very efficient. After World War II,
with new welding techniques, advances in pipe rolling and metallurgy, the reliability improved. Also
after the war, many miles of pipelines were built allowing natural gas to be transported all over the
country. The first wells used to drill for natural gas were vertical wells, which were adapted from
previous oil wells. The original process used to drill for natural gas was called percussion drilling.
Percussion drilling is when a heavy metal bit strikes the rock repeatedly from a tall height. These
depths were much higher than the first well built for natural gas. "The deepest known well using
[percussion] drilling was 11,145 feet, completed in 1953 in New York State." (Marcellus Shale )
Another form of drilling for natural gas was rotary drilling. Rotary drilling uses a sharp, rotating bit

Disadvantages Of Fracking Essay
All of the articles I have discovered discuss advantages and disadvantages for fracking that range
from political, environmental and economic impacts. Throughout my articles, there may have been
some authors who were biased but they still were credible and helpful. I discovered from my
research that fracking is beneficial in numerous ways. For the most part, the concerns were similar.
The author's consistently brought up that local facilities can be affected due to chemical slips in the
water and affect health because there is a possibility that citizens can consume it. Another is fracking
can cause earthquakes due to the pressure from the water, which then creates the crack and makes
the ground more unstable. From these sources, (Biello, ... Show more content on Helpwriting.net ...
I found one (Harvey) that discussed through a political view as well, but he used a different tactic.
Harvey gives a couple advantages for fracking some disadvantages. He states that fracking provides
an endless amount of jobs for those in need of one. The author also discusses that America is rising
because "running a more efficient economy and producing more oil at home has allowed the United
States to reduce dependence on oil from repressive Arab states". Harvey then adds the Petro states
and includes a list of the world's top oil producers to show that America is rising and becoming
more independent. Harvey converses about an ounce of prevention and that those high standards
will prevent serious problems. Last but not least, the author wraps it up with the possibility that "if
we mismanage the oil and gas bounty, we just might suffer many of their ills", therefore stating that
we have to make sure we handle fracking the right way or it will backfire. The author delivers
multiple examples and proof of fracking advantages through linking his sources and adding a list for
support. Therefore, I can conclude that Harvey was credible and effective because he helped me
understand more of the advantages that fracking offers by providing reliable

Information About Oil And Natural Gas Extraction Industry
To: Dr. Maria D. Davidson
From: Nicolas Hardaway NH
Date: September 18, 2014
Subject: Information about Oil and Natural Gas Extraction Industry
This Report requested by the principal financial investor, Dr. Maria D. Davidson, includes
information required to make an informed decision on whether or not to diversify into the Oil and
Natural Gas Extraction industry. The Oil and Natural Gas Extraction industry is involved in the
processes required to find and extract crude oil and natural gas. The Oil and Natural Gas industry
has performed well in recent years despite economic challenges due to the help of new techniques
and technologies that have allowed the industry to quickly recover after economic setbacks.
What are the Major Components of the Oil and Gas Extraction Industry?
Major Operations that this industry is involved in include the exploration and drilling of crude oil,
and the extraction of natural gasses. Once the oil and gas is extracted, these companies now are
responsible for processing the material to then be sold to industries that then either refine crude oil
or distribute natural gas.
Extraction
Traditionally, large drills are used to extract crude oil from the ground or in offshore deposits. With
these techniques, large amounts of crude oil has been left untouched because it was uneconomical to
attempt to retrieve the oil. But, with new techniques such as hydraulic fracturing and horizontal
drilling, it can now become more efficient for companies to go

Pickens Plan
Over the past century, the United States has created an enormous vehicle transportation
infrastructure solely based on one energy source, which is oil. Successful implementation of the
Pickens Plan must involve two major shifts when it comes to the U.S. energy consumption:
replacing natural gas with wind power as a significant source of electricity generation and replacing
oil with natural gas as far as transportation is concerned. If T. Boone Pickens Plan were to be
successfully implemented, the global price of oil would decrease because the plan itself would
significantly decrease the demand for oil. Therefore, when the demand drops, the price will go down
as well. Pickens plan would reduce demand for oil in two different ways. First, it ... Show more
content on Helpwriting.net ...
With a tariff on oil comes an incentive for people to reduce their use of oil and it makes the U.S.
much more independent. The domestic oil industry, would highly support this because it protects our
home country's producers from the competition of cheap OPEC oil imports. Producers of renewable
energy sources would support the tariff because a high oil price makes alternatives to oil more
attractive. Particularly, it offers a powerful reason to bring manufacturing back to North America. As
shown on the graphs that I have constructed, a tariff though it may result in some dead weight
losses, it nonetheless provides the incentive to reduce oil consumption and spending in this country
and it also provides tax revenue. When it comes to the positive externality graph based on the
emphasis the Pickens Plan places on natural gas in America, one can see the benefits the plan
provides for the U.S, economy as a whole. Yes, one can make the argument that there is simply no
demand for such a change at all whatsoever, however, assuming there were subsidies implemented
for the Pickens Plan, we see demand shift to the right, thus conveying that there will be demand if a
good incentive is provided to the U.S. consumers. It would be plausible for the U.S. to cut off
spending billions of dollars to foreign countries and spend its money and focus to move vehicles
away from oil, and rely on renewable energies such as solar, wind, biofuels, which would in effect,
create jobs here in the United States. This would be a better alternative than having the United States
spend huge amounts of money for oil

Factors Affecting Price of Crude Oil and Natural Gas
Factors Affecting Price of Crude Oil and Natural Gas
Introduction
Over the last few years, the prices of crude oil and natural gas have depicted turbulent rising and
falling trend. Changes in these prices are largely determined by supply and demand factors in the
global market. The recent financial crisis that occurred in 2008 and 2009 displays poor economic
conditions that have led to reduced demand of oil due to poor economic activities among many
countries. Presently, the world economy is experiencing a recovery with increased demand for gas
arising as a necessary move. This paper addresses the issue of crude oil and natural gas prices,
providing an analysis of the existing linkage between individual prices and various aspects having
an influence on resulting prices of these products.
Relationship between natural gas and crude oil
According to economic theory, there exists a close connection between the prices of natural gas and
crude oil. This is due to the nature of the products which comes from the same production process
but has a complementing use. In this view, the production and consumption of natural gas and crude
oil occurs interdependently. However, past situations have showed independent movement of crude
oil and natural gas prices. Particular periods occurring in 2001 and 2003 point to the increased rise
in natural gas prices beyond the historical connection observed with prices of crude oil. Such
differing changes prompt economists to

The Future Of Natural Gas
To date gas markets have been regional in character. Is LNG likely to alter this?
BSM179 Oil & Gas Economics
ABSTRACT
Natural gas is finding its place at the very heart of the energy discussions. The recent discoveries of
quite a substantial amount of natural gas in the U.S.A, primarily as a result of the shale gas
development, have attracted much interest towards natural gas as a key component of energy supply
and have lowered prices well below recent expectations. But in other parts of the globe, prices of
Natural Gas remain high and also at the same time: varied. This study seeks to inform discussion
about the future of natural gas and will LNG be able to narrow the price diversity quite prevalent in
regional respective gas ... Show more content on Helpwriting.net ...
GLOBAL GAS MARKETS
Source: Waterborne, US FERC (prices as of 7th June 2013).
Traditionally, world gas markets have operated as three largely self–contained regions. These are
comprised of the Americas; Europe, Africa, and the countries of the Commonwealth of Independent
States (CIS) and the Far East and Middle East. These regions enjoyed limited interconnectivity and
each region developed its own distinctive supply/demand and pricing dynamics. In the Americas,
prices are determined by short–term contracts indexed to the primary market prices set at the "Henry
Hub." In Europe, prices are mostly determined by long–term contracts based on the "next best
alternative," typically indexed against fuel oil and heating oil prices. In the Middle and Far East,
pricing is also typically based on long–term contracts, indexed to a mix of oil prices, but within a
defined range and often at higher levels compared to Europe.
These different pricing models have, to date, resulted in very different price levels and price
volatility between the regions.
North American natural gas prices now hover at $4/MMBtu, down from highs in the $10/ MMBtu to
$13/MMBtu range just a few years ago.
In Europe, demand for additional gas continues to accelerate, driven by the depletion of
conven¬tional gas, on–going environmental concerns (particularly the growing consensus against
shale gas) and the Fukushima disaster's impact on the role of nuclear power.

Oil Drilling and Gas Extraction Industry in the US Analysis
DATE: September 16, 2012
TO: Patricia Bennett, Supervising Principal
FROM: Connor Sims, Associate
SUBJECT: Oil Drilling & Gas Extraction Industry in the US Analysis (21111)
This report presents information regarding the industry, the primary operator of oil and gas field
properties. The industry fuels its key buyers, the Natural Gas Distribution (22121) and the
Petroleum Refining (32411) industries, with crude oil and natural gas. The industry continuously
battles a shortage of available oil. In addition, many major oil fields have been in use for decades,
slowly waning. Currently, the industry grosses among the most profitable in the US despite these
and similar obstacles. The benefits of investing here ... Show more content on Helpwriting.net ...
New firms lacking this versatility may find an obstacle upon entry to the industry (Hersch, 2012).
Additionally, firms in this industry must specialize in exploration and discovery for oil and gas
resources. Firms may struggle finding initial success in this role due to the limited nature of
resources.
Long–term Resource Depletion
'Peak oil' refers to the prime of any field's production, after which goes into terminal decline. Most
major US oil fields are beyond peak oil. The largest US oil field, Prudhoe Bay, has been depleting
since 1979 (Prudhoe, 2012). The US Energy Information Administration indicates much production,
particularly in the Alaskan North Slope, depends on world oil prices (Energy, 2012). Geophysicists
and politicians debate over specifications regarding overall US peak oil, arguing the year in which
US peak oil occurred.
International Comparison
In addition to the US peak oil situation, the US Oil Drilling and Gas Extraction Industry faces heavy
foreign market competition. In 2011, the US ranked 3rd in oil production, behind Saudi Arabia and
Russia (Energy, 2012). Saudi Arabia's OPEC governor expects Saudi output to rise steadily beyond
2030 with a 1.5 million barrel per day spare production capacity then (Energy, 2012). Russia holds
the world's largest

What are the costs and benefits of using natural gas? What...
What are the costs and benefits of using natural gas? What factors affect its supply and demand?
Sandy Wong, Eddie Ching, Maecer Wang Coquitlam College Economics 100 Angie Leung March
27th 2013 Introduction The following report will be based on natural gas. Specifically, it will cover
the uses of natural gas, factors affecting the supply and demand, costs and benefits of natural gas,
the international trade of natural gas, particularly Russian and American imports/exports and finally
substitutes to natural gas. What is Natural Gas? Natural Gas is one of the main sources of energy for
many of our daily needs and activities because of the clean, safe, and useful characteristic. Natural
gas is colorless, ... Show more content on Helpwriting.net ...
Weather – Anomalous weather patterns ail also have an adverse effect on the production of natural
gas, particularly hurricanes which force drilling platforms to temporally cease operations as a safety
precaution ("NaturalGas Supply"). The Benefit and Cost of Using Natural Gas Benefits Natural gas
emits over 25% less carbon dioxide than oil and over 40% less than coal, It is also cheaper to use
than oil and gasoline. Furthermore, natural gas produces 60% to 90% less smog–inducing pollutants
than oil, gas and coal, consequently, acid rain will be less frequent and less damage is done to the
ozone layer. Natural gas is also less flammable than gasoline, making it safer when transported or
stored (Stephenson (2010) (page 55–56)). Costs As a usable energy source, natural gas really only
has one disadvantage when compared to oil, gas or coal, but it is a major disadvantage. It is very
difficult to store and transport due to its low density ("Uses"). If the transport or storage system is
not properly sealed off, there can be risks of a leak. Additionally, since natural gas is a non–
renewable energy fossil fuel, its availability is limited, its extraction is also damaging to the
environment as it leaves large, unsightly craters ("Advantages and Disadvantages of Natural Gas").
Finally, although it may emit less carbon dioxide than other sources of energy, it still emits a
substantial amount compared to

The Environment And Atmospheric Impacts On Earth's...
Looking off into the distance, stacks are jutting high into the sky. Even higher than those stacks, are
the plumes that are being ejected from them. These plumes are filled with chemicals commonly
known in the global climate world as emissions; these emissions deplete the ozone and are causing
significant impacts on Earth's ecological environment. Everyone is guilty of creating and releasing
emissions. While individuals do have an impact, they do not have as large of an impact on the
environment as power plants. Power plants are usually running 24 hours a day, seven days a week;
this means they are producing emissions just as much. Power plants need to start finding a way to
utilize sustainable energy sources because eventually, ... Show more content on Helpwriting.net ...
In 1993, a fourth unit was added; in addition to burning coal and natural gas, it can also burn a small
amount of biofuel. Finally, in 2006, the last two units were added. The fifth unit is a steam
turbine/generator and the sixth unit is a natural gas combustion turbine and companion waster
heat/heat– recovery steam generator ("History" n.d.).
Producing approximately 100 megawatts per hour, this plant needs an exorbitant amount of fuel
source to provide this energy ("Generating Power" n.d.). Since 1965, the fuel source for this power
plant has largely been coal. MSU promotes itself as a green campus, and coal emits a large amounts
of emissions; therefore, there has been a shift away from coal. Also, with the new EPA regulations, it
would have cost more money to redesign the units to meet these standards burning coal than it
would to switch to natural gas ("MSU to Stop" 2015). This is why by the end of 2016, MSU will be
switching to natural gas as the main fuel source for this power plant. Instead of coal being the main
fuel source, it will now be natural gas; using natural gas in place of coal will reduce emissions by
approximately 50 percent (Pacala 2004, 969). This is a big step towards MSU's goals of being a
green campus and using sustainable energy. However, while natural gas has lower emissions, it does
cost more than coal. In September of 2015, Powder River Basin Coal cost $537/MWh (megawatt
hour) and Natural Gas Henry

Essay on Natural Gas Market Evolution in US
Natural Gas Market Evolution in US
Introduction
In terms of primary energy consumption, United States of America is world's second largest country
. It is about 19.5% of the world's share. US consumed 69.7 billion cubic feet per day against the
production of 65.7 Billion cubic feet per day in 2012 . Crude oil consumption and production of US
in 2012 stood at 18.5 and 8.9 million barrels per day respectively. Looking at statistics, it can be said
that US is fairly independent as far as Natural gas is concerned. Natural gas accounted for 27% of
the primary energy consumed in US .To reach such a level, the natural gas market underwent a lot of
reforms. The case presents the evolution of gas market which consumes nearly 20% of natural gas in
... Show more content on Helpwriting.net ...
As the pipelines crossed the borders of states, the jurisdiction problem arose leading to regulatory
gap. From 1911 to 1928, the interstate pipelines were left unregulated. During the same period a
series of judgments from Supreme Court were declared stating that the state governments cannot
regulate these interstate pipelines, as it violates a commerce clause in Constitution . This resulted in
entry of the Federal government to fill the regulatory gap.
Meanwhile in electric utility sector which has a large number of companies developed very complex
pyramid ownership holding patterns. A company is in holding of another company and which in turn
is in holding of another company which is in turn is in holding by another company. With
conflicting interests in top management, end customers prices were peaking high and operations
were became inefficient. Based on Federal trade commission's report on the situation, federal
government passed the Public Utility Holding Company Act 1935 (PUHCA) , which specified rules
for the holding patterns for utility companies. This act's purview also included the natural gas
utilities, but nothing was stated regarding the interstate pipelines.
In 1938, the Federal Government passed the Natural Gas Act (NGA) for regulating the interstate
pipelines. The act added the interstate natural gas pipelines to the Federal Power Commission's
(FPC) (now FERC) jurisdiction. The FPC regulated two major areas.
1. The rates charged

Theoretical Modeling Of Resource Depletion
The original work in theoretical modeling of resource depletion was by Harold Hotelling (1931).
Hotelling provided a method for analyzing producer behavior when extracting a scarce, non–
renewable resource. In this modeling framework, the owners of a resource choose the extraction rate
so as to maximize the present value of the profit. The main conclusion of Hotelling's rule, in its
straightforward form, is that the resource price rise over time at the rate of interest. Indeed, if the
resource price increased faster than the interest rate, producers would choose to delay extracting and
selling the resource till its price had arose, since the resource owners could make more profit by
delaying the sale. If the resource price were declining or going up slower than the rate of interest,
owners would decide to sell more of the resource early and invest their returns at the going rate of
interest.
The efficient point occurs when prices are rising at exactly the rate of interest, making resource
owners indifferent between extracting now or holding reserves for the future. The Hotelling model
depends on several assumptions. The price path can be adjusted with more extensions of the original
model. One common assumption is to allow the extraction cost to be different based on the
cumulative extraction of the resource or the quantity of the resource remained in the ground, to
reflect the fact that as the resource becomes more depleted, the resources that remain get more
costly to

Fracking Industry Analysis
Over one and a half million people have watched the video where the family holds a match under
their faucet claiming that the water was polluted with methane due to the local fracking operation
yet not all 1.8 million people have investigated fracking and if it is a benefit or danger. But some
industry professionals have and provided their insight into the fracking process. Professionals such
as Fred Dews of the Brookings Institute who argues that there are numerous economic benefits to
fracking and that is positively effects more people than you'd think while Chemical Engineer Ross
Topliff of Tops Engineering believes that the potential health issues outweigh any benefits that come
with the process but the fact remains that the dangers are ... Show more content on Helpwriting.net
...
Those living in Arkansas, Louisiana, Oklahoma, and Texas who saved $432 per person and have yet
to see their faucets catch fire or any other fracking danger would agree. I do believe that fracking
safety must be taken seriously but so must all construction and mining jobs, truthfully all jobs with
human workers come with health and safety risks that must be evaluated and assessed. We cannot
allow fracking to be stopped due to the misconceptions about safety, as this only stalls and hinders,
what would a growing benefit to the community. All regions that accept the fracking process have
benefitted, not only local communities but corporations as well. Low cost energy has provided and
improved the community and the national economy while the jobs brought forth by the fracking are
needed and well deserved by those accept the process as the way of the future. The idea that
fracking carries new dangers and environment concerns previously unseen is only

The Future Of Natural Gas And Crude Oil
The Future of Natural Gas and Crude Oil
Throughout history, as well as present day, the usage of natural gas has played an immense role in
our everyday life. However, over recent decades, the extraction and usage of natural gas has become
a more frequent topic of debate. Even though extraction of natural gas and crude oil has been proven
to boost the global economy, people still question weather these methods of extraction will
ultimately destroy our planet. There is an abundance unconventional and conventional reservoirs of
oil and gas under the surface, each with the potential to increase the production of both resources
vastly. Advancements in engineering, such as hydraulic fracturing and horizontal drilling, have
allowed us to take advantage of all aspects of these varying reservoirs. With this impending influx of
resources, many regions will see an increase in production and consumption. Throughout this paper,
we will discuss the current methods of extraction, the uses of natural gas both past and present, and
the US export ban of crude oil. Finally, after reviewing the reasons behind the current low prices on
energy, we can make projections for the future of natural gas.
Shale production and fracking methods have opened a whole world to the oil and gas industry. Just
like the nuclear power, oil and "shale gas" are being used in wide varieties such as: vehicles and
energy. Furthermore; natural gas and oil are used in a wider range than nuclear power. We need
more

Energy Price Volatility With Regards Natural Gas
Executive Summary
In this paper, energy price volatility with regards natural gas will be expounded on the essentials of
market requisites. The report explains a number of factors that lead to price differences in the market
and price volatility implications to oil and gas companies and industry. Supply and demand factors
play a major role in shaping natural gas prices but factors such as war, environment and OPEC
contribute to price differentials. Value–at–Risk (VaR) evaluates and quantifies risk for the industry
as a risk management tool.
Introduction
Global economy is driven by energy markets. Energy does not only play a significant role in
consumer products but also an important input in nearly all the industries. (Efimova O. and ... Show
more content on Helpwriting.net ...
Finally, recommendations and a conclusion made on natural gas price volatility based on the
analysis and information discussed in this report.
Overview
Huntington H. G. 2009 mentions that recent changes in natural gas market are attributed to market
forces and organizations operating in the industry. As the industry develops into new end –user
markets and producers, prices adjust according to the changes in the market.
Due to the key roles of energy influence on global economic welfare, pricing is fundamental for
correct and efficient choice of appropriate energy source. (Davis L. W. and Muehlegger E. 2010).
Energy Information Administration–(EIA) 2014 says the total gas consumption within industrial and
electric power sectors in the U.S. will improve from 25.6 trillion cubic feet (Tcf) in 2012 to 31.6Tcf
in 2040. Natural gas usage escalates in all sectors apart from residential due to population movement
to warmer areas (EIA 2014) figure 1. For instance, in 2010 approximately 25% of energy consumed
in the U.S. came from natural gas (Lv X. and Shan X. 2013). This indicates prices may adjust to
demand changes accompanying its usage.
Figure 1 Natural gas consumption in various sectors, 1990–2040 Source: EIA.2014
The World Market Intelligence 2015, points out that natural gas levels of production and
consumption in the U.S. are

The Economic Report On Fracking, Is It Worth It?
Weekly Economic Report
Fracking, is it Worth it?
Ron Withall
Business 630, Dr. Lynn Reaser
SUBJECT
Our dependence on foreign oil and natural gas has created a vulnerability affecting our national
security and economic stability. Up until this past decade there was an appreciable decline in our oil
and natural gas production in the US and we were tied to world market price fluctuations. Oil prices
and natural gas prices rose and fell based on OPEC's and other large oil and natural gas producers'
production and pricing decisions. Beginning in 2005, things began to change in the US oil and
natural gas industry. New technology called hydraulic fracturing or "fracking" made it possible to
extract oil and natural gas from geological ... Show more content on Helpwriting.net ...
In response to the quake and presumably in a move to prevent further quakes and damage,
Oklahoma state regulators ordered 37 wastewater disposal wells to halt operations. This dramatic
action maybe a sign of what's to come. The question now is whether other states with fracking
operations will follow suit. If a ban or moratorium is placed on hydraulic fracturing it is likely to
appreciably change the oil and natural gas industry in this country and the economies within the
affected states, the nation and our current relationships with other oil producing countries in the
world.
IMPORTANCE
How does fracking and the oil and gas industry affect each of us personally? It is estimated that the
oil and natural gas industry employs over 2.8 million people either directly or indirectly and
employment in the industry, as a result of fracking, has grown substantially (Figure 3). In recent
years we have seen oil and natural gas prices plummet due in part to hydraulic fracturing. Petroleum
prices that were once over $4.00 at the pump are now hovering around $2.50. Natural gas prices
have dropped dramatically (by 47%) since the fracking revolution. According to a report by
Catherine Hausman and Ryan Kellogg on the "Welfare and Distribution Implications of Shale Gas",
natural gas production grew more than 25% between 2007 and 2013 driven by technology
innovations in extraction (Figure 4). In

Life In Algeria Essay
Algeria, the largest country in Africa, is home to 39 million people. The native language is Arabic
and the common currency is dinar. From 2010 to 2015 the GDP (Gross Domestic Product) has
increased from $4,349.00 to $5,836.00, with a population density of 16 inhabitants per square
kilometer. Algeria's GDP is among the highest of Africa's countries, compared to Egypt whose GDP
is $3314.00 per capita. From an economics standpoint, Algeria operates almost identical to the
United States having there republic government led by President Abdelmalek Sellal.
Algeria's history of producing gas isn't extremely long, but it is very productive and beneficial for its
economy and the economy of Africa, as well as Europe. Covering an area of around 2,382 thousand
square kilometers, the Republic of Algeria is, territorially, OPEC's largest Member Country and the
largest country in Africa. It is situated in the north of the continent, and shares borders with
Morocco, the Western Sahara, Mauritania, Mali, Niger, Libya and Tunisia. To the north is the
Mediterranean Sea. Algeria was colonized by France as far back as 1830 under the reign of Charles
X. Algeria gained political independence in 1962, just four years after it began to produce natural
gas. Their colonial struggle lasted eight years and cost the lives of one million Algerians, out of a
population of nine million Arabs and Berbers. (A berber is a group of people in Algeria that are
settled farmers or migrant workers.)
Contrary to

Fracking Yay Or Nay
Fracking: Yay or Nay
As we become increasingly technologically complex, humans are becoming more and more reliant
on energy. This energy is used for gasoline, heating and electricity among many others. Acquiring
energy is very important but acquiring this energy in the most environmentally friendly way is even
more important. There are various methods used when obtaining natural gas but one of the most
controversial ways is through the process of hydraulic fracturing. The idea of Hydraulic fracturing
or Fracking dates back to 1866 when inventor Col. E.A.L. Roberts lowered a torpedo to the bottom
of a well, filled the well with water and the detonated the charge. The weight of the water forced an
explosion and oil began to gush out. Modern ... Show more content on Helpwriting.net ...
Even though there are negative side effects to the method, the positive effects outweigh the negative.
The method allows people to tap into new drilling method, which has greatly increased the
production level. With the abundance of oil, the gas price has plummeted. In addition, increase in
production of natural oil has increased the employment rate of the people. Besides, the change to
fracking has reduced environmental pollution. Because it improves the air quality there has been an
improvement in the health and mortality of the people. The method of fracking is still growing and
new inventions have been created to make the practice better and safer. Percussion has been made to
ensure the method is safer and more efficient. Until there is a faultless way to obtain energy,
fracking will continue to be a leading

Essay On Energy Price Volatility
Executive Summary
In this paper, energy price volatility with regards natural gas will be expounded on the essentials of
market requisites. The report explains a number of factors that lead to price differences in the market
as well price volatility implications to the oil and gas companies and industry. Supply and demand
factors play a major role in shaping natural gas prices in addition to other factors such as war,
environments and OPEC. Value–at–Risk (VaR) as a tool to manage risk and quantify market risk is
used in this industry to understand causes and implications for corrective actions to be put in place.
Introduction
The global economy is driven by energy markets. Energy does not only play a significant role in
consumer products ... Show more content on Helpwriting.net ...
Evaluation of risk levels using the standard Historical Simulation method with a confidence level of
95% will used to calculate expected loss and effects of data set discussed.
Finally, recommendations and a conclusion made on natural gas price volatility based on the
analysis and information discussed in this report.
Overview
Huntington H. G. 2009 points that recent changes in natural gas market are attributed to market
forces and organizations that operate within the industry. As industry develops into new end –user
markets and producers, prices adjust according to the changes in the market.
Due to the key roles of energy influence on global economic welfare such as house cooling and
heating, and business composition determinants and cost of goods and service; its pricing is
fundamental for correct and efficient choice of appropriate energy source. (Davis L. W. and
Muehlegger E. 2010). As Energy Information Administration–EIA 2014 puts it, total natural gas
consumption within industrial and electric power sectors in the U.S. was expected to grow from the
25.6 trillion cubic feet (Tcf) in 2012 to 31.6Tcf in 2040. The use of this energy source escalates in all
sectors apart from residential due to population movement to warmer areas. (EIA 2014) figure 1. For
instance; in 2010, approximately 25% of

Why The Commodities Super Cycle Is Complete Or Not?
EXECUTIVE SUMMARY
The question as to whether the commodities super cycle is complete or not has to be analysed
critically with regards specific products
The shale gas underwent a complete turnaround in the early 21st Century. This was spearheaded by
the United States
Factors affecting the demand and supply of the shale gas industry.
Introduction
For the purpose of this report, the commodity selected is natural gas will be discussed but focus will
be on shale gas. The time period for analysing the factors affecting demand and supply of the shale
gas will be from the 1990's to date.
The report will look into current market situation and history of shale gas and its likely forecast in
price movement in the future. Additionally, it will outline determinants that have led to increased
demand using a case study of the United States and likely supply and demand to the rest of the
world.
Further, the report will discuss commodity price in the industry and arguments for and against
supply, demand and price shifts. Future forecasts and sustainability of the product will be discussed
by use of graphs and tables. Finally, recommendations and a conclusion based on the above analysis
will be made about the commodity.
Overview
History of Shale gas
According to (Total 2012), the production of shale gas begun in the 1990's, and was majorly done by
small independent producers. The big industry players who have advanced production technologies
drove growth in

Essay Todays Rising Gas Prices
Today's Rising Gas Prices
At some point in everyone's lives, we are affected by the rising gas prices in today's economy.
Natural gas is not a renewable resource, since there is a fixed amount of it trapped in the Earth.
However, many people carry the misconception that there is a very limited amount of natural gas,
and that we may use all of it up. This isn't true. The gas shortages of the 1970's were prompted by
the government's lack of faith in the industry's ability to discover and develop new reserves, not by
lack of gas supply. The unfortunate impression left by the shortages of gas in the 1970's caused the
people to believe that there was a small amount of gas left. On the contrary, the gas resource base is
vast, and probably even ... Show more content on Helpwriting.net ...
Inflation can be noticed when the prices of basic commodities increases such as milk, gas and bread.
It is a rise in all prices simultaneously. Inflation is caused when the demand for something exceeds
the supply. This causes the price of that particular item to go up which in turn causes wages to go up
and operating costs also increase (inflation).
Over the past two years, oil prices have increased very rapidly. "With OPEC production cuts and a
growth in crude oil demand," oil prices went from a 25–year low of $11 per barrel in February 1999
to a peak of close to $36 per barrel in December 2003 (Jablon 1). "Some analyst, however, said the
cut could soon push crude prices above the psychologically important threshold of $40 per barrel
and worsen the pain for U.S. motorists" ("Rising Prices Fuel Gas Clash" 1). During this winter, the
price of natural gas has gone through the roof. This brings many questions to mind. Are the
companies just raising prices? Is there actually a shortage that is causing the raise in price?
It turns out that the market for natural gas is a very competitive one and that there is in fact a
shortage in supply that is causing the price to increase. Natural gas must be drilled for and there are
only a certain number of active companies that drill and they all have a set amount of capital. In the
short run the supply of natural gas is very inelastic because they cannot just produce more gas. They
would need

An Outline Of The Global Gas Market
.0 Introduction
This report is an outline of the present status of the global gas market, its advancement from the past
to the present basic market interface and the future of global natural gas markets.
The comparison of Liquefied Natural Gas (LNG) as source energy with other sources of energy, the
impacts around the globe, market structure between regions, the challenges created and a forecast in
regions around the globe based on prices, demand and supply of the natural gas market.
1.1 What is Natural Gas?
Natural gas is one of the safest and cleanest forms of energy used for daily living.
It is the mixture of gases which are rich in different hydrocarbons such as Methane, Ethane,
Propane, Butane and Pentane and mixture of ... Show more content on Helpwriting.net ...
Within 2007–2012, gas consumption in China doubled to about 150 bcm while the gas production in
US gained 25% to reach 681 bcm this same period.
1.2 The Global Gas Market
In recent years, the globalization of natural gas market is largely based on past patterns of
intercontinental shipping basin (i.e. Atlantic and Asia Pacific Basins) or the major regions for natural
gas trades (i.e. North America, Europe and Asia).
The gas demand has gradually grown more than expectation in the past years and demand is mostly
specific to the country, based on high price of crude oil, security of supply and climate change of the
country. Nevertheless, natural gas is still the highest source of energy after renewable energy due to
its less carbon dioxide emission.
The global gas demand over the last decade increased by around 800 bcm by having 2.8 percent
yearly increase, by 2012 demand was an estimate of 3427 bcm.
Fig1.2.1 Atlantic basin This market developed later after the Asia Pacific market was developed. In
this region, European based countries drive the market, also attempting to supplement gas from
Russia and USA while North Africa is relatively out of the market supply. The pricing in this region
is significantly more complex compared to

Case Study: Natural Gas Fiasco
Running head: Natural Gas Fiasco
Natural Gas Fiasco American Public University Professor Benjamin Davis September 9, 2015
NATURAL GAS FIASCO The price of natural gas on the economy tends to affect all industries, and
firms down to the individual consumer. Although there are highs and lows when considering pricing,
the overall assessment will, and should confuse the average person, as the perceived devastation
affect is almost non–existent when demand seems to be untouched. The changes ... Show more
content on Helpwriting.net ...
A price taker is defined as "individuals or firms who must take the market price as given"
(Rittenberg & Tregarthen, 2012, p. 222). Taking the price as given will and has caused a significant
damper of the spending practices of Americans over the last few years, but this is a detrimental
resource for the continuation of modern living.
Another factor in the price of natural gas is the cost of importing the good. As with natural disasters,
the nation's population has no control over the price once the import price skyrockets. If we relied
on our own natural gas production, the price would be astronomical, as we currently do not produce
enough to sustain every household, and corporation throughout the United States. This initiative,
would crumble our economy, as small business owners would not be capable of making enough
money to stay in

Power and Energy Crisis of Bangladesh
Introduction Bangladesh is a country that has been exploited by many super powers in the past. 1st it
was the British and then stated the Pakistani regime. Continuously oppressed and exploited by these
powers the resources of this country were already half exhausted. When Bangladesh emerged on
1971, the country started a new journey towards self sufficiency with whatever left over resources
she had. And with those Bangladesh has maintained her pride among the developing countries for
more than 40 years. The power and energy sector of Bangladesh may not be strong like other
countries but it has been more than enough to provide for the fellow residents and also for exporting
abroad. But for how long can Bangladesh maintain this? It has ... Show more content on
Helpwriting.net ...
6 of 1990 electricity for all by the year 2020. Projected Demand For Electricity Considering the
growth of the individual end–user sectors the projection of demand for energy should ideally be
made. The demand forecast is based on the excellent historical correlation of electricity demand
with GDP and three forecasts of GDP growth through 2025. The Base case uses GDP figures whose
compound average annual growth rate is 5.2%. The low case GDP figures average annual rate is
4.5%. The high case is based on a GOB forecast with an annual average rate of 8.0%. These GDP
growth rates produce net energy demand growth rates to 2025 of 7.9% for the base case, 6.7% for
the low case and 12.0% for the high case. In these three scenarios, it is also assumed that
transmission and distribution losses continue to fall. For transmission, they drop to 3.0% by 2018.
Distribution losses drop to 10% by 2019. Projected Demand for Electricity (Base Case) 2005 2010
2015 2020 2025 GDP (million Taka) 2,634,409 3,525,434 4,607,601 5,880,596 7,328,292 Growth
Rate (%) 5.3 6.0 5.5 5.0 4.5 Total GWh 21,964 33,828 50,306 72,222 100,083 Net Peak Load (MW)
4,308 6,608 9,786 13,993 19,312 Load Factor 58.2 58.4 58.7 58.9 59.2 Projected Demand for
Electricity (High Case) 2005 2010 2015 2020 2025 GDP (million Taka) 2,664,431 3,525,434
4,607,601 5,880,596 7,328,292 Growth Rate (%) 6.5 6.0 5.5 5.0 4.5 Total GWh 22,336

Effects of Crude Oil Prices
Executive Summary What affect does the price of oil and gas have on the economy? How does this
affect the daily lives of the entire population? The preceding questions are the basis for the enclosed
report. The primary objective of this report is to give a few reasons as to what causes prices of oil
and prices of gas to rise. Among these reasons, speculation of things that may or may not happen,
like a terrorist strike, is one of the leading factors. Another reason for the continued rise in prices of
oil and gas is the constant growth that China is experiencing in population and energy consumption.
While each of these natural resources is often spoken of in conjunction with one another, they are
very different commodities with ... Show more content on Helpwriting.net ...
It seemed on plausible to research the knowledge questions within the survey itself to verify what
the actual answers to the questions asked were. The answers for these questions were found from the
Department of Energy, American Petroleum Institute, and presentations from technical experts
within the industry, such as the University of Houston 's Michael Economides.
The survey was taken from several University Center students and co–workers. While this in no way
is representative of the entire population, it did provide a slice of information necessary for
comparison. The survey was intended to provide an insight into common knowledge of the oil and
gas industry and opinions of those surveyed. The survey included three questions for a demographic
baseline, four questions related to knowledge of the oil and gas industry, and eleven questions of
opinion related to the oil and gas industry. The opinion questions dealt particularly with prices of
by–products such as gasoline. A total of forty surveys were conducted.
Findings
Secondary Research
Oil and natural gas effects consumer 's daily lives in aspects of not only petrochemical costs but also
items such as electricity, clothing, and medication. Today the saying has been, "as goes oil, so does
the economy" but the price of oil has not always been known in this way. Two reasons said to be
responsible for the rising prices in oil have to do with wealthy countries and the fact that
predominant oil

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