Economists with the Energy Information Administration (EIA) and The George Washington University have reviewed the relationship between the Henry Hub natural gas price and the West Texas Intermediate ..
Economists with the Energy Information Administration (EIA) and The George Washington University have reviewed the relationship between the Henry Hub natural gas price and the West Texas Intermediate (WTI) crude oil price. Typically, this relationship has been approached using simple correlations and deterministic trends. "When data have unit roots, as in this case, such analysis is faulty and subject to spurious results," according to this research.
The study's authors found a cointegrating relationship relating Henry Hub prices to the WTI. They capture the relative demand and supply effects over a period from 1989 through 2005. This period was characterized by:
Oil price spikes in
Log in to view this article.
Not Yet A Subscriber? Here are Your Options.
1) Start a FREE TRIAL SUBSCRIPTION and gain access to all articles in the current issue of Hydrocarbon Processing magazine.
2) SUBSCRIBE to Hydrocarbon Processing magazine in print or digital format and gain ACCESS to the current issue as well as to 3 articles from the HP archives per month. $409 for an annual subscription*.
3) Start a FULL ACCESS PLAN SUBSCRIPTION and regain ACCESS to this article, the current issue, all past issues in the HP Archive, the HP Process Handbooks, HP Market Data, and more. $1,995 for an annual subscription. For information about group rates or multi-year terms, contact email Peter Ramsay or call +44 20 3409 2240*.
*Access will be granted the next business day.