Associated petroleum gas market: Pricing mechanisms

2021 ◽  
Vol 57 (4) ◽  
pp. 49
Author(s):  
Sergei Chernavskii
Keyword(s):  
Western Siberia ◽  
Joint Production ◽  
Optimal Price ◽  
Market Pricing ◽  
Market Prices ◽  
Associated Petroleum Gas ◽  
Marginal Costs ◽  
Market Factors ◽  
Gas Market ◽  
Actual Price

In Western Siberia, the main oil-producing region of Russia, all functioning regulated marketsof associated petroleum gas (APG) have been liberalized. Because of the monopoly-monopsony structure there is a threat of market prices deviation from socially optimal levels, corresponding to the maximum of public good. The analysis of this threat and assessment of the factors that support it is an urgent problem, which has not yet been covered in the scientific literature. The purpose of the study is to assess the consequences of the liberalization of APG markets. The tool for solving the problems of the study is the economic theory of formation of market equilibrium prices in the joint production of APG and oil. On a liberalized APG market, the maximum public welfare corresponds to a set of market prices, which are determined when considering a virtual competitive market. The actual price is formed under the influence of non-market factors. The liberalized market has no mechanism for forming a socially optimalcomposition of non-market factors, and the parties have no information allowing them to determine the corresponding socially optimal APG price. Therefore, it must be set by the regulator. The algorithms for calculation of marginal costs of joint production of oil and APG and socially optimal price of APG are constructed.

scholarly journals Socially Optimal Market Prices / for Associated Petroleum Gas and the Problem of Their Acceptability

2019 ◽  
pp. 76-84
Author(s):  
Ekaterina O. Lobanova
Keyword(s):  
Petrochemical Industry ◽  
Fair Price ◽  
Optimal Price ◽  
Market Prices ◽  
Associated Gas ◽  
The Public ◽  
Market Participants ◽  
Scientific Approach ◽  
Gas Market ◽  
Made In

The socially optimal price (Russ. – GOC) is the price that is most relevant to the public interest. However, in some markets, situations arise when the GOC turns out to be negative, that is, the seller has to pay the buyer for the product being sold. In such situations, there may be a conflict of interests between the seller (trader) and the company. One of these markets is the oil associated gas (Russ. – APG) market in Russia. The oil associated gas market is unique and has no analogues in the world. The market structure is monopoly-monopsony. SIBUR comes from the buyer of petroleum gas, one of the oil-producing companies from the seller’s side. In the course of its historical development, conflicts often arose in the market, which were based on the pricing of petroleum gas. Market participants could not agree on a fair price for gas. This circumstance prompted the regulator to reform the NPG market using a scientific approach. In 2009, the NPG market was liberalized, but the state does not monitor prices in this market. Calculations made in 2016 showed that in some cases, an EOC for oil associated gas is negative. When applying negative OOCs, a conflict of interest is inevitable, which can lead to serious market disruptions and jeopardize the work of the petrochemical industry in Russia. The article attempts to analyze the acceptability of the use of negative GOCs and to develop measures aimed at increasing the acceptability of the sellers of negative GCbs of the products they sell.

Estimating Maintenance-of-Way Costs for U.S. Railroads After Deregulation

2000 ◽  
Vol 1707 (1) ◽  
pp. 13-21 ◽  
Author(s):  
C. Gregory Bereskin
Keyword(s):  
Economies Of Scale ◽  
Joint Production ◽  
Transportation Services ◽  
Marginal Costs ◽  
Production Economies ◽  
Total Differential ◽  
Cost Behavior ◽  
Simplifying Assumptions ◽  
Costing System ◽  
The Cost

The movement of freight on railroads, like most transportation services, is subject to a number of restrictions that make costing of specific traffic a complex process. Among these restrictions are conditions of joint production; economies of scale, scope, and density; and a lack of data on specific expenditures as related to individual freight movements. Yet costing of specific movements is a desirable activity for shippers, railroads, and regulatory bodies. Traditionally, movement costing has involved the use of accounting-based allocative costing models such as the Uniform Rail Costing System developed by the Interstate Commerce Commission for use in regulatory hearings. Most econometric studies have aimed at characterizing the underlying economic nature of costs with little or no application to the cost of providing a specific service, and as such they may be of little use in costing specific traffic. Moving beyond the historic econometric costing models’ application of economic analysis, cost behavior is evaluated for a single sector of railroad activity. The process involves four steps. First, a consistent econometric model of total railroad expenditures is developed by applying a translog function within a multidimensional definition of railroad output. Second, the model is decomposed into individual partial-elasticity estimates relative to each of the several related intermediate output measures within the framework of a total differential of the cost function. Next, specific traffic movements are defined relative to the measures of rail output. Finally, the total differential is applied using several simplifying assumptions to yield estimates of incremental (marginal) costs for the specific traffic definition.

Remote monitoring of associated petroleum gas flaring in oilfields of Western Siberia

2018 ◽  
Author(s):  
T. O. Peremitina ◽  
G. A. Kochergin ◽  
M. A. Kupriyanov ◽  
Y. M. Polishchuk ◽  
I. G. Yashchenko
Keyword(s):  
Remote Monitoring ◽  
Western Siberia ◽  
Associated Petroleum Gas ◽  
Gas Flaring

scholarly journals Valuing Warm Homes - Exploring New Zealanders' Home Heating Choices

2021 ◽  
Author(s):  
◽  
Hayley Vujcich
Keyword(s):  
Willingness To Pay ◽  
Energy Efficient ◽  
Economic Value ◽  
Health Study ◽  
Contingent Valuation Study ◽  
Market Prices ◽  
Focus Group Research ◽  
Home Heating ◽  
Market Factors ◽  
New Zealanders

<p>New Zealand homes have a record of being poorly heated and inadequately energy efficient. While policy makers increasingly recognise the many benefits associated with energy efficient warm homes, there is currently a lack of understanding of how New Zealanders make choices about space heating. This thesis takes a mixed method approach in order to 1) understand how New Zealanders value energy efficient heating and 2) further explore how people make decisions about home heating. Capturing the economic value of the range of benefits associated with home heating is investigated through analysing a contingent valuation study undertaken by the Housing, Heating and Health Study (University of Otago). Participants show 'willingness to pay' and related values below heater market prices. It is argued that there is some indication of split incentives issues and income constraint, and increased familiarisation with space heaters may increase willingness to pay. Evidence from focus group research suggests that while attitudes and norms are conducive to efficiently heated homes, other market and non-market factors impede pro-environmental choices. The widely recognised Kiwi stoicism of living in cold homes is not evidenced; choosing to go cold in the home may instead be rationalised as mitigating the environmental impacts associated with heating. This analysis sheds light on how intervention and how provision of information to fill the 'energy efficiency gap' could move outside the 'rational person' model of how New Zealanders make home heating choices.</p>

Ukraine's Naftogaz in better shape but beset by doubts

2021 ◽  
Keyword(s):  
Free Market ◽  
Chief Executive ◽  
Market Prices ◽  
Content Type ◽  
Pipeline Network ◽  
Gas Market ◽  
The Many

Significance Managing consumer hostility to free-market prices is just one of the many challenges facing Naftogaz. The acrimonious dismissal of its chief executive Andriy Kobolev in April caused alarm among Ukraine's Western backers. Kobolev oversaw progress in reforming the gas market and hiving off the pipeline network. Impacts Washington's actions effectively end Ukraine's efforts to block the pipeline, though lobbying will continue. The new Naftogaz chief's plan to shift European buyers' delivery points from western to eastern Ukraine may breach contracts with Russia. Pricing for household utilities will continue to be 'weaponised' by the opposition.

Oncogenic Targets, Magnitude of Benefit, and Market Pricing of Antineoplastic Drugs

2011 ◽  
Vol 29 (18) ◽  
pp. 2543-2549 ◽  
Author(s):  
Eitan Amir ◽  
Bostjan Seruga ◽  
Joaquin Martinez-Lopez ◽  
Ryan Kwong ◽  
Atanasio Pandiella ◽  
...  
Keyword(s):  
Anticancer Agents ◽  
Randomized Clinical Trials ◽  
Progression Free Survival ◽  
Target Population ◽  
Chemotherapeutic Agents ◽  
New Agents ◽  
Market Pricing ◽  
Market Prices ◽  
Group A ◽  
Group B

Purpose The relationship between market pricing of new anticancer drugs and the magnitude of clinical benefit caused by them has not been reported. Patients and Methods Randomized clinical trials (RCTs) that evaluated approved new agents for solid tumors by the US Food and Drug administration since the year 2000 were assessed. Hazard ratios (HRs) and 95% CIs were extracted for time-to-event end points described for each RCT. HRs were pooled for three groups: agents directed against a specific molecular target, for which the target population is selected by a biomarker (group A); less specific biologic targeted agents (group B); and chemotherapeutic agents (group C). Monthly market prices of these different drugs were compared. Results For overall survival (OS), the pooled HR was 0.69 (95% CI, 0.59 to 0.81) for group A (six drugs, six trials); it was 0.78 (95% CI, 0.74 to 0.83) for group B (seven drugs, 14 trials); and it was 0.84 (95% CI, 0.79 to 0.90) for group C (eight drugs, 12 trials). For progression-free survival (PFS), the pooled HR was 0.42 (95% CI, 0.36 to 0.49) for group A (six drugs, seven trials); it was 0.57 (95% CI, 0.51 to 0.64) for group B (seven drugs, 14 trials); and it was 0.75 (95% CI, 0.66 to 0.85) for group C (six drugs, 10 trials). Tests for heterogeneity between subgroups were highly significant for PFS (P < .001) and OS (P = .02). The median monthly prices for standard doses of drugs were $5,375 for group A, $5,644 for group B, and $6,584 for group C (P = .87). Conclusion New agents with specific molecular targets are clinically the most beneficial, but their monthly market prices are not significantly different from those of other anticancer agents.

CALL WARRANTS IN CHINA'S SECURITIES MARKET: PRICING BIASES AND INVESTORS' CONFUSION

2011 ◽  
Vol 07 (02) ◽  
pp. 333-345 ◽  
Author(s):  
WEI FAN ◽  
XINYI YUAN
Keyword(s):  
Lower Bounds ◽  
Securities Market ◽  
Market Pricing ◽  
Market Prices ◽  
No Arbitrage ◽  
Black Scholes Model ◽  
Price Performance ◽  
Black Scholes ◽  
Trading Mechanism ◽  
Using Data

This paper examines the price performance of call warrants in China's securities market. A recent sample of daily call warrant prices observed during the period from August 2005 to March 2007 is used. To the best of our knowledge this is the only recent study to using data from China and as such it greatly enhances our understanding of this particular market. On average, we find that the observed market prices are irrationally higher than the Black-Scholes model prices by 80.38% (using 180-day historical volatility) and 140.50% (using EGARCH volatility). However, we find another anomalous phenomenon that some of the call warrants prices are not only lower than the model prices, but have also recently been anomalously under their lower bounds. This finding seems to violate the "no arbitrage" principle. Among the convincing reasons, our findings indicate that trading mechanism constraints in China's securities market prevent rational investors from driving the prices of these call warrants to a reasonable level. Arbitrage chances are found to exist in some specific cases when the call warrant prices are below their lower bounds.

scholarly journals A study of efficiency in New Zealand election prediction markers

2021 ◽  
Author(s):  
◽  
Tram P. Cao
Keyword(s):  
Unit Root Test ◽  
Prediction Markets ◽  
Opinion Poll ◽  
Market Pricing ◽  
Market Prices ◽  
Arbitrage Opportunities ◽  
Election Prediction ◽  
Using Data ◽  
Abnormal Profits ◽  
Poll Data

<p>The development of prediction markets has naturally given rise to studies of their efficiency. Most studies of efficiency in prediction markets have focused on the speed with which they incorporate information. A necessary (but not sufficient) condition of efficiency is that arbitrage opportunities must non-existent or transitory in nature so that the systematic generation of abnormal profits is not possible. Using data from New Zealand’s first prediction market, iPredict, I examine the potential for arbitrage in the contracts for the party vote for the 2011 General Election. Relative to the risk-free interest rate, the returns from arbitrage are generally low, consistent with an efficient market. Regression analysis requires that the data not be subject to the possibility of spurious regressions - something that is not addressed in the literature. After confirming the non-stationarity of the price level and the stationarity of the price changes by the unit root test, I use the iPredict data in conjunction with opinion poll data to test whether the polls impact on market pricing behaviour. Using a number of different model types, I find that the opinion poll data has a very limited impact on market prices, suggesting that the information contained in the poll is largely already incorporated into market prices.</p>

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