Subject: re : one more thing
clayton ,
i agree . this would happen when there is an insufficient pipeline capacity
to move gas . the market developments you describe happen quite
often and this is one of the reasons we want to have the model you are working
on .
vince
vince
clayton vernon @ enron
01 / 17 / 2000 09 : 30 am
to : vince j kaminski / hou / ect @ ect
cc :
subject : one more thing
vince -
i forgot to mention to you one other development i propose , a theory i call
" uncoupling " of basis . as an example , severe cold weather specific to the
midwest can result in an elevation of spot market prices at henry hub , where
prices elsewhere in the northeast are such that the basis appears to be less
than the commodity charge to ship gas from louisiana to the northeast . this
can happen when gas is not being moved in the spot market from louisiana to
the northeast at that time . the notion of " equilibrium " cannot , in my view ,
always assume " spot " gas is flowing along all nodes of the network .
clayton