European Gas Prices Research Articles

INNOVATIVE SOLUTIONS FOR ENSURING ENERGY SECURITY OF UKRAINE AND THE WORLD

The article examines the preconditions for the aggravation of the energy danger for Ukraine and the world as a whole, in particular in the context of the strengthening of the economic crisis and war in Ukraine. The issue of compliance by energy organizations with the International Climate Paris Agreement and the achievement of the Global Sustainable Development Goals by 2030 were studied. The component indicators of the global index of energy innovations were analyzed. The main global energy indicators and their results in 2021 compared to 2020 were monitored. The paper also estimates domestic electricity consumption in the world by country in 2021, as well as trends in the growth of global energy consumption in general and by continent in 2021 compared to 2020. The result of such trends was that the consequences of sanitary measures and the economic crisis of 2020 was felt mainly in the sphere of services, transport and carbon-intensive electricity production. The authors considered the key changes in the field of energy in the world in 2021 compared to 2020 and the dynamics of CO2 emissions related to energy in the G20 countries in recent years and based on this justified the forecast of European gas prices and the price of Brent oil to 2026 year. The main characteristics of countries with a high index of global energy innovation were considered. It was found that, for example, the Norwegian government had developed a strategy for carbon capture and storage (CCS), which aimed to identify measures to promote technology development and reduce the costs of CCS. It was found that the main goal of the EU regarding the share of renewable energy sources is 32% of the final energy consumption by 2030. This target was not distributed among the Member States, but the share of renewable energy sources in the Member States should be at least the same as in 2020. In the article, the authors examined the stages of state regulation of the innovation policy of the energy sector of Ukraine and substantiated the place of the energy sector in the national innovation policy of Ukraine. Formation of innovation policy in the energy sector of Ukraine requires definition of the concept and strategic plans of its innovative development. In particular, it was found that one of these priority areas should be renewable energy (wind, solar, etc.). The result of the authors’ scientific research is that the innovative system of the energy sector is a fairly developed network intellectual structure that connects research and design organizations belonging to different sectors of the economy. Using the potential of the positive influence of a number of important global factors should be the basis of the transformation of innovative management of energy industry organizations in Ukraine.

European gas prices shut down resin plant

European gas prices shut down resin plant

Is hub-based pricing a better choice than oil indexation for natural gas? Evidence from a multiple bubble test

Oil indexation and hub-based pricing are two competing pricing mechanisms in the international natural gas markets. The debates over whether hub-based pricing is preferable to oil indexation have become intense among academics and practitioners, for example, whether and when East Asia should adopt hub pricing. This paper contributes empirically to the debate using a multiple bubble test. Adopting the generalized sup augmented Dickey-Fuller test proposed by Phillips et al. (2015), we show that more explosive bubbles exist in Japan and European gas prices than in the US prices. The argument is that hub-based pricing mechanism can better reflect fundamental values in the gas markets and thus is less subject to speculations. Given the recent trend of financialization in energy markets, gas prices are more likely to deviate from fundamental values when they are not clear to investors. Although oil indexation is simple and has been an effective tool over the past few decades, our results suggest that hub pricing is associated with less extreme price movements in the market and thus is a better choice for both policy makers and practitioners.

Beijing Now Plays Major Role in European Gas Prices

Today, coal prices set the floor for natural gas prices in Europe. Much of Europe's energy imports come from imported Chinese coal, and statistical analysis of recent moves shows that China is able to manipulate that market. A look at Exhibit 1 shows that the price of European coal is very closely correlated to the price of Chinese coal.

Russia’s gas challenge: the consequences for China, Central Asia, Europe and the USA

Russia is posing a series of challenges to gas consumers and gas producers alike. But the effectiveness of these challenges remains a matter of considerable debate. Overall, prospective Russian actions and policies have profound implications for the development of the European gas market in general, and thus for potential US LNG exports to Europe. Moreover, underlying all this is the most worrisome question of all: do Russia’s policies and actions enable gas consumers—and indeed, some Central Asian gas producers—to regard Russia as a reliable energy partner? This article therefore addresses: Prospects for the full implementation of the Russia–China gas accords; Prospects for Turkmen gas supply to both Russia and China; Prospects for the development of both Gazprom’s Turkish Stream project and the EU-backed Southern Gas Corridor; Prospects for US LNG in Europe; The potential challenge that a change in Russian gas export policies could pose to European gas prices. The article also seeks to answer the question as to whether Russia can be considered a reliable partner, particularly in connection with long-term deliveries to Europe.

Analysis of the Iberian Power Forward Price Formation

<?Pub Dtl=""?> The price formation of the Iberian Energy Derivatives Market—the power futures market—starting in July 2006, is assessed until November 2011, through the evolution of the difference between forward and spot prices in the delivery period (“ex-post forward risk premium”) and the comparison with the forward generation costs from natural gas (“clean spark spread”). The premium tends to be positive in all existing mechanisms (futures, Over-the-Counter and auctions for catering part of the last resort supplies). Since year 2011, the values are smaller due to regulatorily recognized prices for coal power plants. The power futures are strongly correlated with European gas prices. The spreads built with prompt contracts tend also to be positive. The biggest ones are for the month contract, followed by the quarter contract and then by the year contract. Therefore, gas fired generation companies can maximize profits trading with contracts of shorter maturity.

Gas versus oil prices the impact of shale gas

What significance will developments in shale gas production have for European gas prices? Some commentators paint a gloomy picture of the future gas markets. But most forecasts for the oil market are positive. Consequently, a view appears to prevail that price trends will differ sharply between oil and gas markets. This article looks at developments in US shale gas production and discusses their impact on the movement of European gas prices. The relationship between oil and gas prices over time is also analysed.

Gas Versus Oil Prices: The Impact of Shale Gas

What significance will developments in shale gas production have for European gas prices? Some commentators paint a gloomy picture of the future gas markets. But most forecasts for the oil market are positive. Consequently, a view appears to prevail that price trends will differ sharply between oil and gas markets. This article looks at developments in US shale gas production and discusses their impact on the movement of European gas prices. The relationship between oil and gas prices over time is also analysed.

Have European gas prices converged?

The development of a single European market for gas has been a goal of EU policy makers since the Single European Act (SEA) of 1986. EU Directives of 1996 and 1998 put these aspirations into action. However, casual empiricism suggests that convergence may have begun before this. This paper investigates whether gas prices in Europe have converged since 1978. Using annual data, three empirical tests for convergence are applied to gas prices for six EU Member States; a simple test for β-convergence; a cointegration test; and Nahar and Inder's [2002. Testing convergence in economic growth for OECD countries. Applied Economics 34, 2011–2022] test. The results from two of these three tests suggest that convergence did occur for most of the countries in the sample over this period.