Programme Committee B (PGC B): Strategy, Economics and Regulation

7. A Development of energy cost from 2010 to 2030 and beyond
Objectives: The future cost of fossil fuels will increase. “Easy” oil and gas reserves have been exploited. New fields are located in more difficult terrain and are more distant from the markets.
Coal needs CCS to meet the environmental needs. Renewables are getting cheaper but most forms will probably not be competitive in the short term. Nuclear is back on stage, now cheap but with increasing construction costs, while safety and environmental measures might make this energy form more expensive.
Therefore cost development will have a huge impact on the future energy demand and supply.
For this topic we look for realistic analyses of the development of cost of all main energy sources, to provide a coherent view at this subject. Special attention should be paid to the position of natural gas.
Key words: Energy cost – Renewables - Unconventional fossil fuels.

7. B Price elasticity of demand
Objectives: Estimates of the price elasticity of natural gas demand can provide the answer to how consumers will react to price changes. Natural gas markets have so far been characterised as regional markets, and a lot of research work has been done on national and regional level. Markets are increasingly integrated as LNG trade is beginning to dynamically link global gas consumption. The question we are seeking authors to address is how current knowledge can be used in a global context and what new research is needed to fully understand how regional differences will influence both short and long term trade flows.
Key words: Price elasticity - Gas demand, Global gas trade.

7. C Sustainability of multiple pricing systems in an integrated market
Objectives: There are many different gas pricing principles in use around the world. Examples of gas pricing mechanisms or models include: oil price escalation; escalation link to competing fuels, gas to gas competition; netback from final product, regulation on a cost of service basis and regulation below cost. At the same time, gas markets are becoming increasingly integrated through new pipeline networks and through a growing LNG trade. The papers should address issues related to the sustainability of multiple pricing systems in an integrated and global gas market.
Key words: Gas pricing principles - Oil and gas link - Globalisation

7. D The future rationale for linking gas price to oil price in long term contracts
Objectives: Oil price escalation is the dominant pricing principle in Continental Europe and Asia. It means that gas price is contractually linked to oil or oil products. In Europe, it is typically linked to gas oil and/or fuel oil, while in Asia to crude oil. This link has been questioned both by regulators and consumers, and the papers should address the future rationale for linking gas price to oil price. What could a decoupling imply for price levels, inter-fuel competition, and attractiveness of future investments in new gas value chains, compared to alternative investments in oil projects?
Key words: Oil gas link - Inter-fuel competition - Capacity investments

7. E Gas Industry – Commercial challenges and strategies.
Objectives: Authors are invited to address commercial and development challenges facing the gas industry to 2030, including topics like:
· Evolution of the supply demand envelopes for the major markets
· Scale of investment required in new infrastructure
· Emerging landscape of industry leaders
· Strategic responses to the changes
Particular case studies are especially welcome.
Key words: Gas development – Strategy – Investment

7. F Security of Supply – Regulation, Economics, and Markets
Objectives: In this forum we intend to tackle the issues related to emerging concerns over security of supply. Topics to be addressed by the papers include:
· Impact assessments, particularly on assets, markets, and economics
· Regulatory responses and proposed solutions
· Competing and balancing pressures: security of supply - increased costs - extension of competition
Particular case studies are especially welcome.
Key words: Security of supply – Regulation – Investments - Markets