- Since 1960, the gaspricing mechanism in Europe is based on the “take and pay” principle, or on the so-called Groningen pricing principle. He got his name from the giant Groningen gas reservoir, discovered in the Netherlands in 1959. Its development was too expensive, and to get paid off, public funds were raised. To ensure the stability of payment and supplies, the same principle of “take and pay” was applied in the gas market, and the price of gas was “tied” to the oil price. Now Europeans sell and buy gas through this system. It provides for long-term contracts that fix the annual volumes of gas choice. If the buyer does not purchase the entire contracted amount, then he pays fines. The price of gas (usually per thousand cubic meters) is reviewed quarterly. At the same time, it depends on the cost of alternative energy sources.
According to Klevas DQG âWUHLPLNLHQơ (2006), energy, as an industry is described by infrastructure and interconnections of electricity, centrally supplied heat systems, oil, gas, coal and local and renewable energy resources. For this paper, one component of energetics was selected – natural gas market. The purpose of this paper is to analyze pricing structure and to identify factors with the most effect on natural gas price. This analysis could be taken as a foundation to further analysis of the long-term gas price forecasting.
To meet this potential enormous demand, robust import growth in the medium term would be needed as well as increased domestic production. The pricing reform of July 2013 improves the economics of pipeline and LNG imports as it in effect links the city-gate price to oil-indexed contracts and is likely to lead to increased supplies, while strict environmental policies will enforce more gas use and help reduce industry overcapacity across the country. The level of future pipe and LNG imports depends critically on various factors such as the availability of their supply and relative price, the speed of China’s domestic gas price and overall energy industry reforms, local affordability, the strength of domestic supply and robustness and evolving structure of demand under economic rebalancing. With the introduction of a more market-oriented pricing mechanism, Chinese gas demand will become more closely correlated with pricing reform. The speed at which the price of existing and incremental gas converge and tiered gaspricing is introduced will have a strong impact on Chinese sectoral and regional gas demand, which is becoming increasingly sensitive to the economics of LNG and pipeline imports – the ability to pay netback prices and the size of resource endowments vary significantly among China’s various regional gas markets which also have diverse seasonality. The degree to which gas demand will respond to price changes will depend largely on various regional market fundamentals, the level of accessible pipeline connectivity and the perception of gas import availability. Regions that are more developed economically and have relatively fewer alternatives tend to be more able to pay higher prices and pass through costs to end users. However, there is an increasing reluctance to pay premium LNG prices and a growing trend towards accelerating the sourcing of alternative supplies.
OPITO were also pleased to welcome the Norwich MP, Chloe Smith, as the guest speaker at a very successful networking lunch for women in oil and gas in the East of England. Work has also continued in influencing skills policy through the work of the Associate Parliamentary Group for Skills and Employment, which is very important with the general election only five months away. Research into the policy developments on shale gas helped shape OPITO’s bid for writing standards for this fledgling industry and, the OPITO team has been kept up to date with weekly bulletins from Westminster and edited highlights of the year’s key political events. The findings from the recent LMI report ‘Fuelling the next generation’ were launched at the beginning of December 2014. The study, commissioned by Oil & Gas UK, OPITO and the Department for Business, Innovation and Skills (BIS) was undertaken by Ernst & Young. The purpose was to gather workforce data to identify the demographic and skills composition of the current oil and gas industry workforce, the key challenges faced by the industry and how demand is likely to change over the next five years. This builds on long-term collaboration to understand, track and anticipate the workforce profile across the whole industry.
15 | P a g e Once every five years the regulator resets the DPP by specifying the starting price and allowable notional revenue that will apply from the beginning of the next regulatory period and the minimum quality standards that the gas distribution businesses are required to achieve when operating and maintaining the gas network during the regulatory period. The requirements of the DPP are intended to provide the suppliers of regulated goods and services with sufficient incentives to innovate and invest, while limiting any ability to extract monopoly profits, and also to share with consumers the benefits of any efficiency gains achieved in the supply of the regulated goods and services. These objectives are promoted by simulating the outcomes produced by competitive markets.
• The second method of searching for a competitive price for India will be to take the weighted average of pricing prevailing at trading points of transactions – therefore, the hubs or balancing points of the major markets of continents. For this, (a) the hub price at the Henry Hub in the US (for North America), (b) the price at the National Balancing Point of the UK (for Europe), and (c) the netback price at the sources of supply for Japan will be taken.
In 2005 two exploration licences and one production licence (Oosterwolde) for the onshore territory were applied for. In addition, one storage licence was applied for. This concerns storage in a depleted gas field (Waalwijk). For the Continental Shelf, thirteen exploration licences were applied for, three have been awarded and two lapsed. Four exploration licences have been subdivided, while two were merged. As for production licences, one production licence has been submitted (P 8), seven have been awarded and one application has been withdrawn. For details see chapters 3 and 4 and annexes 1 and 2.
Oil, Gas, and Minerals SMU Law Review Volume 38 Issue 1 Annual Survey of Texas Law Article 9 1984 Oil, Gas, and Minerals Eric T Laity Follow this and additional works at https //scholar smu edu/smulr[.]
Oil, Gas, and Minerals SMU Law Review Volume 39 Issue 1 Annual Survey of Texas Law Article 14 1985 Oil, Gas, and Minerals Eric T Laity Follow this and additional works at https //scholar smu edu/smulr[.]
Oil, Gas, and Minerals SMU Law Review Volume 40 Issue 1 Annual Survey of Texas Law Article 14 1986 Oil, Gas, and Minerals Eric T Laity Follow this and additional works at https //scholar smu edu/smulr[.]
Firstly, the water is most often discharged to the environment – to the sea from offshore oil and gas production platforms, to local river courses from onshore production systems or to estuarine or near coastal waters from oil terminals or oil refineries. With increasing pressure on protecting the environment the presence of potential pollutants in these waters has to be addressed. Secondly, the water does contain some hydrocarbons which could be recovered and returned to the main production system. Deoiling produced waters
Oil and gas companies regularly turn to AECOM for mission-critical planning, operational, and closure services to support their operations, facilities and development projects around the world. With our truly global footprint, broad technical expertise and well established Environment Health and Safety (EH&S) program, AECOM is a single source for integrated services across the entire life cycle of oil and gas assets. We work with upstream, midstream, downstream, marketing and alternative energy segments on global, regional and portfolio programs such as site
the refineries, along with the location and the spare capacity in those refineries that can easily convert lower-quality crude oil into higher-yielding petroleum products. Reflecting changes in these fundamental determinants, the Brent-Dubai spread has fluctuated within a range of around US$0–15 per barrel. These benchmark prices used in formula pricing are usually based on either (i) ‘spot’ prices determined by PRAs (for example, a ‘spot’ price published by Platts called Dated Brent); or (ii) prices determined in futures markets (for example, the assessed WTI price published by the PRAs). Oil companies often reference more than one benchmark price depending on the final destination; for example, Saudi Aramco typically employs the Brent benchmark to price oil exports to Europe, Dubai-Oman for exports to Asia and the Argus Sour Crude Index for exports to the United States. These particular crudes emerged as benchmarks due to several distinctive characteristics. Brent developed as a benchmark owing to favourable tax regulations for oil producers in the United Kingdom, in addition to the benefits of stable legal and political institutions (Fattouh 2011). Ownership of Brent crude oil is well diversified, with more than 15 different companies producing it, which helps to reduce individual producers’ pricing power. 6 Brent can also be used by a variety of buyers, given that it is a light sweet crude oil that requires relatively little processing.
Oil and Gas SMU Law Review Volume 27 Issue 1 Annual Survey of Texas Law Article 6 1973 Oil and Gas Bob F Young Follow this and additional works at https //scholar smu edu/smulr This Article is brought[.]
Oil and Gas SMU Law Review Volume 8 Issue 3 Survey of Southwestern Law for 1953 Article 10 1954 Oil and Gas Jim Bliss Follow this and additional works at https //scholar smu edu/smulr This Article is[.]
Oil and Gas SMU Law Review Volume 9 Issue 2 Survey of Southwestern Law for 1954 Article 10 1955 Oil and Gas Bill Masterson Follow this and additional works at https //scholar smu edu/smulr This Articl[.]
Oil and Gas SMU Law Review Volume 21 Issue 1 Annual Survey of Texas Law Article 4 1967 Oil and Gas William J Flittie Follow this and additional works at https //scholar smu edu/smulr This Article is b[.]