While the price of LNG is around $8-9/MMBTU in Europe (1 million British Thermal Unit or approximately 28 cubic square meters) and around $3-4/MMBTU in the US, the price in Asia is around $16-18/MMBTU. This discrepancy is described as the “Asian premium in LNG prices.” This phenomenon is generated by the difference in the pricing mechanism of LNG and limited number of LNG exporters.
Since Japan started to import LNG as a way to decrease its dependence on crude oil, LNG price mechanism has close tie with crude oil price. The LNG price in Japan and other Asian countries is determined by based on a pre-fixed price formula. Japan’s average crude oil import price is used as a benchmark of the pre-fixed price formula along with some other key components to reflect market conditions. Therefore, Japan’s LNG import prices are directly influenced by Japan’s crude oil import prices. Higher crude oil prices since early 2011, caused by instances of political instability such as the Arab Spring and Iranian nuclear crisis, have resulted in higher LNG prices in the Asian market.
In addition, th...
America is dependent on other nations for their ability to create energy. The United States is the world’s largest consumer of oil at 18.49 million barrels of oil per day. And it will continue to be that way for the foreseeable future considering the next largest customer of oil only consumes about 60% of what the U.S. does. This makes the U.S. vulnerable to any instability that may arise in the energy industry. In 2011, the world’s top three oil companies were Saudi Aramco (12%), National Iranian Oil Company (5%), and China National Petroleum Corp (4%). The risk associated with these countries being the top oil producers is twofold. One, they are located half way around the world making it an expensive to transport the product logistically to a desired destination. And two, the U.S. has weak, if not contentious,...
Based on the graph above, we can see that when the price of East Tuna increases, the sales of East Tuna decreases. The correlation (Refer to correlation) can prove that the relationship between the price of East Tuna and the sales of East Tuna are negatively related and it is fairly strong (-0.6159). The price of Kings Tuna is negatively related to the sales but with a weak relationship (-0.0247). Furthermore, the sales of East Tuna and the price of Lescos Tuna has a positive but weak relationship (0.1852). This means that Lescos Tuna is a competitor for East Tuna because when the price of Lescos Tuna increases, the sales of East Tuna increases as well. A software
Fuel prices is an area of concern for the motor carrier industry. Fuel prices are at an all-time high, driving the industry to make drastic changes. Individuals in the industry believe that by reducing the demand for fuel is the best way to address the current fuel issue. One of the leading alternatives to this fuel issue could be natural gas.
Despite of Australian Gas Manufacturing industry’s internal focus and low levels of international trade, it is still categorised by its global nature. Australian exports of liquefied natural gas (LNG) are expected to pick up eventually which was observed in response to high demand in Asian countries for LNG. The fact that Australian Gas Manufacturing industry is dominated by a number of European and US-based global players, such as Linde AG (Germany), Air Liquide SA (France), Air Products & Chemicals and Praxair (US). These industries occupy two-thirds of total global industry sales.
In his story, Chomei compares himself to a hermit crab who prefers a small shell for shelter. He seeks only the basic needs to survive, he mentions that because of his experience in the capital, he chooses only a small but functional hut to live. He lost interest in what the civilized world offered, he only needs the bare minimum to survive thus to meditate. In his story, he mentions that he just seeks tranquility and enjoy the absence of care. (Chomei 1278) He too mentions that a common practice in the world is that men not always build homes based only on their own needs, moreover most men feel the need to build more than the necessary or basic needs to prove a social acceptance. In fact, he mentioned the only thing we need to survive lies within ourselves. His believes consists on that the spiritual freedom starts from leaving behind unnecessary weight, therefore he can move from place to place without feeling guilty of leaving anything or anyone behind.
Economic systems have many variations with one of them being the free market economy. In the free market, there is no government intervention so firms can operate without having to comply with regulations or pay tax (they would have to pay an extremely minimal amount of tax for defense ex.). This in theory is a breeding ground for competition but in reality economies very close to free markets face the challenge of monopolies. Monopolies control the whole market and set the price they want and don’t take the price like other companies. They have complete control over the market so they can have supernormal profits by raising the price over the market equilibrium if it is easier and more profitable for them. In this essay I will be talking about
Simmons estimates crude oil prices to average $24 WTI for 2000 and $21 WTI for 2001, with 1Q00 at $28, 2Q00 at $24, 3Q00 at $23 and 4Q00 at $21. For 2001, they see 1Q01 at $22, 2Q01 at $20, 3Q01 at $21 and 4Q01 stable at $21. Their thesis, relying on inventory-price dependence, is as follows.
In the film Equilibrium directed by Kurt Wimmer, an important setting is Liberia. The setting helped me understand the character Cleric John Preston. Wimmer used various film techniques to show this. The city of Liberia is a controlled surrounding ruled by the Father.
Recently, water scarcity is a critical issue that has been increasing human attention. Unfortunately, approximately one-fifth people who suffer from water scarcity (FAQ, 2007:P.4) that meant people who live a region is below 1000 m³ per year Pereira(2009). On the other hand, this situation has not changed; likewise, it become more serious due to population growth as well as pollution that lead the residents have not enough water in daily life. Therefore, the following paper would analysis the cause and the effects of the water shortage.
Another key cause to the price inflation issue is the extended period of bitterly cold weather that loomed in the northern and midwestern parts of the U.S. throughout the winter months. This led to an “increased demand in home heating oil, which is widely used in the region and is virtually identical to diesel fuel” (Lang1). This increased demand for fuel coupled with the restrictions on exported oil allowed OPEC to jack up their prices an exorbitant amount in a relatively short period of time.
The WTI is described as light because of its relatively low density, and sweet because of its low sulfur content (Cite source). The WTI is the underlying commodity of New York Mercantile Exchange 's (NYMEX) oil futures contracts. If we calculated using the current buying power of U.S dollar, i.e. after eliminating the effects of inflation in the past 45 years, from 1970 to 2015, according to the NYMEX, the crude oil price of WTI has moved from 15 to 120 dollars a barrel (Cite source). When recalling the oil prices in the past to predict for the future, we have seen a lot of vicissitudes phrases. From 1974 to 1985, oil prices moved within a range of 50 to 120 dollars per barrel. From 1986 to 2004, for almost 20 years, oil prices range between 20 to 50 dollars per barrel. There are two exceptions for that time frame, however, when the crude oil price raised above 50 dollars ceiling or fall below 20 dollar floor is when Iraq attacked Kuwait in 1990 and when the Russian Federation devaluation its currency in 1998 due to the effect of the economic crisis from the East Asia in 1997. Later, from 2005 to June 2015, oil prices returned to the 1974-1985 range, which is between 50 and 120 dollars
Fixed exchange rate which is at times known as pegged exchange rate is an exchange rate regime where a country’s currency value is fixed against the value of another currency or to another measure of value such as gold.
Pacific Oil Company The Pacific Oil Company is going through renegotiation. The company grew immensely early in its inception. The Pacific Oil Company is a “producer of industrial petrochemicals” (Lewicki, Saunders, & Barry, 2010). In 1979, the Pacific Oil Company established a contract with the Reliant Corporation. Pacific Oil Company purchased “vinyl chloride monomer” (VCM) from the Reliant Corporation.
Road pricing-is charging the road users for the costs they impose to others road users or to non-road users
This rise in prices was real problem for the United States because they had no spare production to make up for the lack of Arab oil. Inside the U.S., the public suffered greatly because of the popularity of suburbia which in turn created a large dependency on oil to go anywhere. Therefore, the OPEC shock was detrimental to the life of the American citizen during its duration. People became very aware of the importance of oil, its price, and its availability. Thus there became an especially strong political pressure on companies, which promoted “equal suffering” and “fair share” principles to promote diversion. The king of Iran came up with a new basis for oil prices and it won app...