On December 12, 2019, Fed in Print will introduce its new platform for discovering content. Please direct your questions to Anna Oates

Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of Dallas
Working Papers
Deliverability and regional pricing in U.S. natural gas markets
Stephen P. A. Brown
Mine K. Yucel
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.


Download Full text
Cite this item
Stephen P. A. Brown & Mine K. Yucel, Deliverability and regional pricing in U.S. natural gas markets, Federal Reserve Bank of Dallas, Working Papers 0802, 2008.
More from this series
Note: Published as: Brown, Stephen P.A. and Mine K. YĆ¼cel (2008), "Deliverability and Regional Pricing in U.S. Natural Gas Markets," Energy Economics 30 (5): 2441-2453.
JEL Classification:
Subject headings:
Keywords: Natural gas; Arbitrage; Pricing
For corrections, contact Amy Chapman ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal