EconPapers    
Economics at your fingertips  
 

Deliverability and regional pricing in U.S. natural gas markets

Stephen Brown and Mine Yucel

No 802, Working Papers from Federal Reserve Bank of Dallas

Abstract: During the 1980s and early '90s, interstate natural gas markets in the United States made a transition away from the regulation that characterized the previous three decades. With abundant supplies and plentiful pipeline capacity, a new order emerged in which freer markets and arbitrage closely linked natural gas price movements throughout the country. After the mid-1990s, however, U.S. natural gas markets tightened and some pipelines were pushed to capacity. We look for the pricing effects of limited arbitrage through causality testing between prices at nodes on the U.S. natural gas transportation system and interchange prices at regional nodes on North American electricity grids. Our tests do reveal limited arbitrage, which is indicative of bottlenecks in the U.S. natural gas pipeline system.

Keywords: Natural gas; Arbitrage; Pricing (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ene
Date: 2008
Note: Published as: Brown, Stephen P.A. and Mine K. Yücel (2008), "Deliverability and Regional Pricing in U.S. Natural Gas Markets," Energy Economics 30 (5): 2441-2453.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18) Track citations by RSS feed

Downloads: (external link)
http://dallasfed.org/assets/documents/research/papers/2008/wp0802.pdf (application/pdf)

Related works:
Journal Article: Deliverability and regional pricing in U.S. natural gas markets (2008) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:feddwp:0802

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of Dallas Contact information at EDIRC.
Bibliographic data for series maintained by Amy Chapman ().

 
Page updated 2019-05-13
Handle: RePEc:fip:feddwp:0802