MIS 4390-Energy Trading Systems Exam 1

3 Fundamentals

-Supply

-Logistics

-Demand

How does energy flow?

Production to Consumption

3 Streams

-Upstream

-Midstream

-Downstream

3 Markets

-Production

-Wholesale

-Consumption

3 Pipelines

-Gathering

-Transmission

-Distribution

The energy capitol of the world is____.

Houston, TX

What is the future of energy?

Runaway industry regardless of form

ETS is focused on

"making you an asset from day one"

FERC stands for

Federal Energy Regulatory Commission

What pump is for lazy gas?

Horse head pump

Henry Hub

a natural gas distribution hub in Louisiana; it is ground zero for pricing

Field Processing

-Cost Basis

-Gravity filters

-Scrubbers

-Heater Filters

-Liquid Separators

Plant Processing

-Fee Basis

-Gasoline Plants

-NGL Plants

-Liquid Separators

Natural Gas is mainly___

methane

2 Types of Energy

renewable and nonrenewable

Where do you find city gates?

distribution/demand area

Main location for storage?

Demand

What are pigs used for in pipelines?

-Intelligent Pigs: determine thinness in the pipes

-Cleaning Pigs: clean the pipes

IntrAstate Pipelines

pipes do not cross state lines; regulAted by stAte

IntErstate Pipelines

pipes cross state lines; govErned by FERC

What is the solid black hydrocarbon, that is found near the surface of the earth called?

Coal

What is the main concern for the gas and pipeline industry?

Safety

Which of the 3 fundamentals have 3 components?

Logistics

3 Components of Logistics

-Transport

-Processing

-Storage

Who said "If you cant explain it simply, then you simply don't understand" ?

Albert Einstein

How is gas measured?

MCF x BTU = MMBTU

MCF is equal to

1000 cubic ft

BTU (British Thermal Unit)

amount of energy needed to cool or heat 1lb of water by 1 degree Fahrenheit

MMBTU

1000 Energy Units at 1.0 BTU

GasTrak

ETS used for labs

Which major Natural Gas Fundamental Area can you find City Gates and distribution activity?

Demand Side

What innovation has made the United States the top oil and gas producer of the world?

Shale Oil, Fracking, Hydraulic Fracking

What country is the largest oil & gas producer in the world today?

United States

Periods of the Natural Gas Historical Timeline.

-1800: Non-regulated, wild wild west

-1930: Regulation, Overly so

-1980: De-regulation, Kind of

Regulated supply and demand but not transport

-2000: Fracking, new ball game

-2020: LNG Market, Hello World Delivered gas around the world

What does LDC stand for?

Local Distribution Company

Gathering Pipeline

Upstream

Small diameter

Processing Plants

Common Point Meter

Transmission Pipeline

Midstream

Large Diameter

Cross state lines

Long Hauls

Distribution Pipeline

Downstream

Small Diameter

End of the line

End User Delivery

City Gates

Which of the three pipelines have similar characteristics>

Gathering and Distribution

Where are the predominant number of storage facilities are located?

North- they store it until demand is higher

What is the name of the facilities that propel natural gas to its destination?

Compressor Stations

What gas is called once it has been processed at a plant?

Market Ready

What do Compressor Stations use for fuel and what is their primary purpose?

-use Natural Gas

-drives natural gas to destination

Are Operational personnel concerned with Gas Ownership?

No

What could happen to gas customers if gas is not delivered to them during frigid weather?

Death

Who is the new player at De-regulation.

Marketers

Which type of meter is used in determining leaks.

Check Meters

What are the two types of planning model/types?

Long Term: 1-3 years

Short Term: Day to day/Month to month

Bid-week

When it occurs: Last week prior to the month

Purpose: bulk of contracts for monthly gas supply for next month are finalized

What are Morning Meeting for ?

Planning for following day's operations and trading

Difference between quantity and quality of gas, and what each is called.

MMBTU- Quality

MCF-Quantity

What is a Christmas Tree is in the Natural Gas Industry?

Equipment that controls the flow of pipes produced by a well and controls high pressure wells