The Regulation Induced Shortage of Natural Gas

Cover The Regulation Induced Shortage of Natural Gas
The Regulation Induced Shortage of Natural Gas
Paul W Macavoy
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The knowledge Input Is particularly important; after a point, further wells con- tribute no more knowledge of a trap or field formation; any more drilling is done to put producing capital in place. Since only the first relates to reserves, then substituting wells W for C in R = f (P, P0 _i»W, ) could result in a positive or negative reserve-well relation.
The supply of new production Q is related to the supply of new reserves R ; as a matter of course, it is asserted that new pro- t ductlon has
... to come from new reserves or else there would be reduced "supply assurance" to established final buyers out of keeping with pipeline and Commission rulemaking. Supply of new production also depends on initial base price in the new contracts: the higher the price, the more production promised both new and later from a stock of reserves. Also, the greater the pure extraction or production costs PC from known formations, the greater the quantity of production Q^, The argument here is the same as in the preceding footnote, as applied to production Increases rather than reserve increases.

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