The Message in North American Energy Prices

The dynamic interactions of world natural gas markets

“…The question of __________________________________________________________________________________ 270 whether natural gas markets are integrated with liberalization is important for many researches as many industrialized countries are trying to liberalize their natural gas markets by giving permission to third party access to infrastructure, reducing trading barriers and introducing privatization in order to increase efficiency and decrease prices. Considering the findings, the results of this study demonstrate that the interaction of natural gas markets within the inter-continental area is limited, whereas the natural gas markets of continental countries are liberalized that is consistent with the results of De Vany and Walls (1993), Serletis and Herbert (1999) for North America, Asche et al (2011Asche et al ( , 2002, and Renour-Maissant (2012) for Europe. Moreover, the study of Siliverstovs et al (2005) is the first that regards the degree of natural gas market integration internationally and the findings of this study support them.…”

“…The null hypothesis for the ADF and PP tests is that the variable has a unit root and is not stationary. These results reveal that there is regional gas market integration in United States as the null hypothesis of no co-integration between Henry Hub spot prices and pipeline gas import prices is rejected with 1% significance level supporting the results of De Vany and Walls (1993), Serletis and Herbert (1999) and Siliverstovs et al (2005). Moreover, there is a regional market integration in Europe, as the null hypothesis of no co-integration between LNG Europe and Pipe Europe is rejected with 1% significance level supporting the results of Asche et al (2011Asche et al ( , 2002, Siliverstovs et al (2005) and Renour-Maissant (2012).…”

The Weak Tie Between Natural Gas and Oil Prices

“…These include Serletis and Herbert (1999), Villar and Joutz (2006), Brown and Yücel (2008) and Hartley, Medlock and Rosthal (2008). Each of these papers implements a complicated set of statistical analyses of the two data series plus a number of related conditioning variables in order to determine if a relationship can be found with any statistical reliability, and, if so, to determine what that relationship is.…”

“…3 The results in the 2 Villar and Joutz (2006) and Brown and Yücel (2008) directly model the relationship between natural gas and crude oil prices. Serletis and Herbert (1999) model the relationship between natural gas and fuel oil prices, among other energy prices, but do not include crude oil specifically. Hartley, Medlock and Rosthal (2008) model the relationship between natural gas and crude oil prices, but use the price of fuel oil as an intermediate step.…”

Efficient frontiers for electricity procurement by an LDC with multiple purchase options

“…First, as a basic input in electricity generation, the natural-gas price helps to drive electricity prices [4,25]. Second, local natural-gas spot markets, such as Sumas in the Pacific…”