Demand Equation for Natural Gas Usage
Introduction
Clearwater Enterprises LLC is a natural gas marketing and consulting company based in Oklahoma City. In addition to marketing natural gas for producer clients throughout the state, Clearwater Enterprises provides retail gas sales services to more than 1,200 end users and consumer clients. Clearwater Enterprise's goal is to provide competitively priced reliable natural gas to its clients and advising them on the current natural gas climate. In order to provide competitively priced natural gas, Clearwater Enterprise's from time to time, stores natural gas for its clients and takes pricing risk in a volatile gas market. Being long or short gas in the company's storage account can cost money and affects the bottom line. Given the close relationship between daily high and low temperatures and natural gas usage, demand estimation or forecasting is very vital for Clearwater, sand is critical in avoiding such additional fees.
This term-paper is prepared for how short-term weather forecast is affecting natural gas usage for Clearwater and its clients and intended as a reference for the company when estimating short-term natural gas usage.
Demand Curve Estimation
Demand curve estimation is sometimes relatively simple, especially in the case of stable short-run demand relations. The best technique for estimating the demand curve is the method that provides a necessary level of accuracy at minimum cost. In many instances, simple demand curve estimation techniques are the most effective and cost efficient approach. Simple methods are commonly used to estimate demand curve. If a manufacturer has a substantial backlog of purchase orders, the pace of future sales can sometimes be estimated prec ...