Report on LNG

Part A

Introduction

The study assignment discusses significant areas of demand, supply and price elasticity analysis in terms of LNG in two parts. The first part discusses the aspect of increased storage use of LNG as well as increased hostile values between the United States government and the other companies involved in the northern streams of the project. On the other hand, the significant government policies and procedures regarding the carbon iron footprint stature have also been addressed in this regard. The increased usage and storage of LNG. The Liquefied natural gas or LNG is processed under -260 degree Fahrenheit for shipping or storage. The liquid stage is smaller to 600 times. A suitable conclusion at the end follows the discussion.

Discussion

The natural gas pipelines are not feasible, or these do not exist. Thus for natural gas, the production process can be implied from different regions and markets. Such options include in countries like the United States or Ireland or countries like Asia and Europe. Thus these Asian countries the combined accounting process from the largest group of global LNG imports. The overall LNG has been shipped between external terminals. Therefore when the process is returned to internal terminals and from there to the commercial customers, residential or sure commercial customers (Victory et al. .2019).

Thus in recent years, the statistics have been showing specific positive results. Since in countries like the United States, the production of natural gas has been increased in each year until the same has been picked up in 2007 at about 771 billion cubic feet. Hence the overall demand and supply of LNG have been steadily increased. On the other hand, in the United States, the import of natural gas and pipeline network has also been reduced to some extent. The sources of the United States have imported 76.5 bcf of LNG (Xu and Mukherjee 2020). This is considered to be the lowest of the amount. Thus apart from the United States, other countries have also shown pathway towards usage and storage of LNG. The list has been made below-

Source: https://www.eia.gov/energyexplained/natural-gas/liquefied-natural-gas.php

From this above diagram, I see that the demand and storage value of this LNG across the state has been continuously increased or uprising. From the details, I have understood that the overall business requirements of LNG were raised in 2015 than that of 2010. Thus it can be understood that the demand and supply elasticity of these product has been highly increased (Dalaklis et al. .2019).

U.S. government and companies involved in the northern stream project

The European energy policy is decided in Europe, not in the U.S. Thus; we are opposed in the overall principle to interventions from abroad as well as extraterritorial sanctions. Moreover, the north stream pipeline is an underwater gas pipeline from Russia to Germany from the last year construction since last year. Also, the overall potential has been Russian gas imports into Europe’s largest economy. Also, the Kremlin-controlled Gazprom had been circumventing towards the pipeline network through Ukraine (Hong et al. .2019).

Moreover, the projects will be related to specific political support in Russia and Germany has been fiercely resisted elsewhere. Thus the European Commission has also made clear its opposition to the pipeline process (Krishnan 2019).

The leaders have threatened to repeatedly to impose sanctions on Nord stream two arguing that the project can be threatened to understand the policies and procedure to weaken the long term running political and military struggle with Moscow.

The overall U.S. legislations have taken a legislative step towards making a threat in reality. Moreover, the U.S. House and the Senate have amended in the long term running process regarding this case as a whole (Gopinath et al. .2019).

Government policies to reduce Ireland’s carbon footprint

In countries like Ireland, there are certain aspects related to the process of carbon emissions. Thus the government have given subsidies, emissions and trading schemes as well as enhance the process of carbon taxes. These can secure a long term price and create an impact on the macroeconomic conditions (Awoyomi et al. .2019).

Source: https://www.google.com/url?sa=i&url

The government has also enriched carbon taxation process to many of the desired criteria. This has provided reduced climate-friendly control regarding the research and development procedure. Hence the revenue generated from this purpose has helped the government to induce overall sustainability to help in competitiveness and employability. For specific vulnerable industries, it is found that these negotiations have implemented certain protections in the domestic sector as a whole. Hence in countries like Ireland, these can induce to environmental tax reformations (Sharafian et al. .2019).

Conclusion

From this study process, it can be said that the LNG gas import and export across different countries have introduced demand and supply elasticity variations based on the requirements. Thus the increased storage and uses of the LNG.  Moreover, the expanded hostile concept of the U.S. government or individual companies that have been involved in this process has helped me to Gain more knowledge regarding northern stream two projects which could be highly beneficial in this context. The government policies regarding carbon, the footprint has also initiated significant steps.

Part B

Concept of market failure and its impact on government policy

To reduce the pollutions rates faced by the countries, the green tax initiative has been taken by the government. Generally, green taxes are considered to be excise taxes regarding environmental pollutants or the uses of goods which leads to such pollution activities. Hence this is an initiative to improve the overall environment as well as to reduce the negative impact in the creation of sustainable environmental factors. Thus green taxes are considered to be an economic instrument to understand issues in the environment. It is believed that this green tax initiative had been highly effective in harming the situation in a costly manner. Thus it is essential to make specific changes to reduce emissions and seek out cleanliness or sustainable alternatives (Chen et al. .2019).

Considering an example of this green tax option is the carbon tax. Australia had initially implied this. This can exercise or levy carbon particles or fossil fuels. Thus through reduction of this critical issue may look to contribute towards initiating sure global warming and climate change prospects. The carbon tax may also look to begin moral development and can look to target clean resource generation procedures.

Furthermore, the European countries have also used air pollutants to counter the negative environmental issues or effects as a whole. For example, the government has taken steps against old vehicles that comprise of much more air pollution and encouraged for new cars in the transport system. Considering another example of a country like Bangladesh who has imposed the concept of green tax to force the pollution factories as well as try to pay extra levies to clean up the Countries Rivers and create a sustainable impact on the aqua treatment.

However, like Australia or Bangladesh who has initiated an affirmative step towards taxation in safeguarding the greenery and implementation of environmental tax, it can be said that these can create sustainability towards the reduction of environmental burden and perceiving the changes in ecological. Thus the significant revenues generated by the organization in this regard, the process can look to create a significant environmental impact. Moreover, this environmental preservation technique has been helpful to introduce preservation techniques to cut the taxation values. Thus it can be said that the green tax policy will be useful in pursuing sustainability features and create a natural environmental process in their country.

Hence behind the process of evaluation techniques, it can be said that the green tax can be helpful to the government in the below ways-

The government can raise substantial revenue which can be useful in financing other pollution in reducing schemes.

It provides a market incentive for firms to offer more excitement engines, which cause less pollution. Moreover increased petrol tax has created an incentive for firms and its customers to switch less fuel injective engines.

This pollution taxation technique is majorly inelastic, and it can help to reduce demand and can marginally reduce an overall pollution rate to reduce the need and slightly reducing the pollution amount. Thus through the long term demand, the process may be implied to make more realistic demand change. Therefore people can look to reduce the market over time.

The green taxation can be hard to implement in the green tax due to high administration cost or look to reduce the process implied in this case.

Pollutions permit

The concept of pollution permit is considered to be a market-based scheme aimed at reducing pollution as well as trying to encourage the firms in lowering the pollutions quality they create. Thus it can permit specific financial incentive to pollute less because the process can sell or exercise a proper way to reduce pollutions. These calls for a market incentive process.

However, the implementation of this practice is very hard from the governmental point of view. It is highly challenging to know how many permits to give out. If the government can permit in a freeway, thus this can help in making pollution reduction. The government is too strict in implementing permits; firms may look to reduce adverse effect output since this cannot generate more licenses.

Subsidies

Governmental taxation may be ineffective, and there are no such practical alternatives. On the other hand, the concept of government subsidies for individual firms or consumers will be willing to switch over. For example, the idea of solar power is an alternative way of making solar energy more engaging and competitive development. Hence it can be said that the government subsidy can be considered as highly effective in maintaining the solar energy to its significant positive externality.

Regulations

According to the European Union has created many rules for limiting the pollution amount in the air. Thus the European Union regulations have set strict limitations to the number of pollutants put into the air. Hence it can be said that the regulations advantage can create a sustainable development as well as may look to involve in pollutions level reduction. Thus it can be said that the governments of respective countries can look to reduce pollution level rather than relying on market-based incentives which may or may not work in this regard.

Consumer behaviour changes

Another strategy which the government can look to implement is that the process can highly encourage the consumers to change their behaviour. Considering an example will be raising awareness in the overall environmental cost of leaving or heating or aspects of air conditioning process as a whole.

Free market solutions

The government can also look tom imply specific free-market solutions that can be generated from free-market capture or any sort of governmental intervention techniques as a whole. Considering an example, in this case, is related to a recent year statement where due to specific technological developmental process, the solar power means that cleaner energy is now highly competitive than the fossil fuels. However, it can always leave to the market to the free market because of the free-rider effect. For example, the process which is used to blight London only ended when the government banned domestic coal fires in major cities as a whole.

References

Awesome, A., Patchigolla, K. and Anthony, E.J., 2019. Process and Economic Evaluation of an Onboard Capture System for LNG-Fueled CO2 Carriers. Industrial & Engineering Chemistry Research.

Awesome, A., Patchigolla, K. and Anthony, E.J., 2019. Process and Economic Evaluation of an Onboard Capture System for LNG-Fueled CO2 Carriers. Industrial & Engineering Chemistry Research.

Chen, S., Chen, G. and Cui, W., 2019, July. Research on LNG Vehicle Refrigeration Using Waste Cold Energy. In IOP Conference Series: Earth and Environmental Science (Vol. 300, No. 4, p. 042079). IOP Publishing.

Dalaklis, D., Kitada, M., Ölçer, A.I., Schönborn, A., Canepa, M. and Ballini, F., 2019. Expanding the Use of Liquefied Natural Gas in the Baltic Sea Region via Tailor-made Training Activities.

Gopinath, A., Sole, S.A. and Shevade, B.S., 2019. Use of geosystems for coastal and marine structures to combat erosion problems-case reference-geosystems at LNG Petronet terminal, Kochi, Kerala (India). Indian Journal of Geosynthetics and Ground Improvement, 8(2), pp.29-36.

Hong, W., Shen, S., Wang, Z., Wang, Z. and Cai, W., 2019. A cryogenic sensor based on fibre Bragg grating for storage monitoring of liquefied natural gas. Cryogenics, 97, pp.7-12.]

Krishnan, P., 2019. Experimental and Theoretical Study on Stability of High Expansion Foam Used for LNG Vapor Risk Mitigation (Doctoral dissertation).

Meriden-Paul, R.H., Enshaei, H. and Jayasinghe, S.G., 2019. Effects of fuel-specific energy and operational demands on cost/emission estimates: A case study on heavy fuel-oil vs liquefied natural gas. Transportation Research Part D: Transport and Environment, 69, pp.77-89.

Nabi, G., Adeel, M., Alvi, S., Atiq, M.Z., Ahmad, A., Shehzadi, A. and Riaz, A., 2019. Evaluation of LNG consumption in the local market through GIS. Science and Technology, 1(02), pp.79-88.

Sarafian, A., Asante, S.R., Herrera, O.E. and Mérida, W., 2019. Policy implications of liquefied natural gas use in heavy-duty vehicles: Examples in Canada and British Columbia. Transportation Research Part D: Transport and Environment, 69, pp.123-140.

Victory, D.J., Lupascu, S.T., Saleeby, K.E. and Sites, O.A., 2019. Method and System for LNG Production using Standardized Multi-Shaft Gas Turbines, Compressors and Refrigerant Systems. U.S. Patent Application 16/005,167.

Xu, J. and Mukherjee, P.K., 2020. The International Legal Regime Governing Shipboard LNG. In Maritime Law in Motion (pp. 691-702). Springer, Cham.