Category: Oil and Gas business

Emissions or emissions level  – The mass of methane emitted into the atmosphere usually expressed in million tons.

Emission factor – The average rate of emissions from a specific source such as a piece of equipment, a facility or a country.

Emission intensity – The ratio of the volume of methane emitted to the volume of natural gas produced (upstream) or transmitted and distributed (downstream) expressed as a percentage.

Fugitive methane emissions – Occur from leakages that are not intended, for example because of a faulty seal or leaking valve.

Vented methane emissions – Emissions that are the result of intentional releases, often for safety reasons, due to the design of the facility or equipment, or because of operational requirements, such as venting a pipeline for inspection or maintenance.

Incomplete flaring methane emissions – These occur when natural gas that cannot be used or recovered economically is burned instead of being sold or vented. The vast majority of the natural gas is converted into CO2 and water, but some portion may not be combusted and is released as methane into the atmosphere.

Super emitters – These are emission sources within a sector or subsector that account for the majority of measured or estimated emissions. Definitions vary as to how to categorise super-emitters: studies have suggested anything between the top 5-15% of sources.

Environment – while the gas industry has portrayed itself as the cleanest fuel (in relations to emissions in general and carbon in particular) it is s till a fossil fuel. Three specific problems have been raised in relation to environmental claims by the gas industry:

1. 1. Insufficient account of methane emissions from the gas chain – given that methane is a much more powerful greenhouse gas than carbon dioxide – may invalidate any claim to have advantages over coal.
   2. The claim that unconventional gas development involves greater emissions of methane, and also the use of harmful chemicals in the hydraulic fracturing process.
   3. More generally, the lack of any significant progress towards widespread CCS, presents a major obstacle to long term inclusion of gas (or any other fossil fuel) in decarbonizing energy balances. This lack of progress can lead to the conclusion that new gas-fired generation and infrastructure can lead to carbon ‘lock-in’, namely that unabated gas installations will be emitting carbon for the commercial life of their assets

 

A monthly cash settled Exchange Futures Contract based upon the mathematical result of subtracting the price of the NYMEX Henry Hub Natural Gas Futures Contract, from the monthly price published by Inside FERC for the location specified.

 

This is a monthly cash-settled derivatives contract listed on both Intercontinental Exchange and the Chicago Mercantile Exchange. It was launched in 2012 and reflects a standard lot size of 10,000 MMBtu.

 

The derivatives contract is settled on the Platts JKM daily physical spot price assessment for LNG cargoes delivered into Japan, South Korea, China and Taiwan, which import nearly 60% of the world’s LNG.

JKM futures are based on prices achieved in financial markets rather than on prices for physical cargoes achieved in commodity markets.

The JKM futures market is relatively illiquid beyond six months, compared to more mature derivatives markets, such as oil futures — which means the quotes may be less indicative of market expectations, although this market has been growing over recent years (2018) and this growth is expected to continue.

Entities that respond to market prices rather than attempt to influence prices by managing production

Tariff pancaking happens when gas flows across multiple – generally small – zones are charged with successive tariffs for each zone crossed. This can price new supply sources which have to cross several zones out of certain markets. The pancaking means that multiple tariffs are accumulated and become too expensive.

By combining daily price and flow data, FAPDs are designed to give a measure of the consistency of economic decisions of market participants in the context of close to real time operation of natural gas systems. With the closure of the day-ahead markets (D-1), the price for delivering gas in a given hub on day D is known by market participants. Based on price information for adjacent areas, market participants can establish price differentials.

Late on D-1, market participants can nominate commercial schedules for day D. An event labelled as an FAPD occurs when commercial nominations for cross border capacities are such that gas is set to flow from a higher price area to a lower price area. The FAPD event is defined by a minimum threshold of price difference under which no FAPD is recorded. The minimum threshold for gas is set at for example 0.5 Euro/MWh. After the day ahead market closes, market participants still have the opportunity to level off their positions on the balancing market. That is why a high level of FAPD does not necessarily equate to irrational behavior. In addition, it should be noted that close-to real time transactions represent only a fractional amount of the total trade on gas contracts. The FAPD chart provides detailed information on adverse flows. It has two panels. The first panel estimates the ratio of the number of days with adverse flows to the total number of trading days in a given period. It also estimates the monetary value of energy exchanged under adverse flow conditions (mark-up) compared to the total value of energy exchanged across the border.

The mark-up is also referred to as “welfare loss”. A color code informs about the relative size of FAPD events in the observed sample, going from green if less than 10% of traded days in a given period are FAPDs to red if more than 50% of the days are FAPDs. The second panel gives the split of FAPDs by sub-category of pre-established intervals of price differentials. It represents the average exchanged energy and relative importance of each sub-category on two vertical axes.

 

Analysis provides fast identification and detection of trace metals content in chemical and petroleum samples

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Sorry, this entry is only available in עברית.