Applied Computational Mathematics Division


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A Nash-Cournot Equilibrium Model for the North American Natural Gas Sector

Steven Gabriel
University of Maryland, Department of Civil and Environmental Engineering

Wednesday, February 16, 2005 15:00-16:00,
NIST North (820), Room 145
Gaithersburg
Wednesday, February 16, 2005 13:00-14:00,
Room 4550
Boulder

Abstract: In this presentation, we examine the North American natural gas market from the nonlinear complementarity problem/variational inequality problem perspective (NCP/VI). The NCP/VI formulation takes into account the non-cooperative, game-theoretic interactions between the various players (e.g., pipeline companies, producers, marketers, etc.). In particular, third party marketers are taken to have market power giving rise to a Nash-Cournot formulation. We discuss qualitative properties of the NCP/VI-based equilibrium as well as recent numerical results for a mixed complementarity model using a very detailed characterization of the North American natural gas market. The resulting model contains: 14 separate regions in Canada and the US, 132 pipelines, and many players in these regions.

Speaker Bio: Dr. Steven A. Gabriel received his PhD and MA in Mathematical Sciences from the Johns Hopkins University (1992 and 1989, respectively). Before that, he received an MS in Operations Research (1984) from Stanford University and a BA in French and concentration in Applied Math from Middlebury College (1977). His research interests include optimization and equilibrium modeling in a variety of application areas as well as related algorithm development. Lately he has been focusing on game-theoretic models in the energy sector both from a deterministic as well as stochastic point of view. The game-theoretic perspective is appropriate given the recent deregulation and restructuring that this industry has faced in which some of the players may exert market power. Prior to joining the University of Maryland in 2000, he held positions at George Washington University (part-time faculty), Argonne National Lab (postdoc), as well as project manager and analyst positions in industry for over 20 years.

Presentation Slides: PDF

Contact: P. M. Ketcham

Note: Visitors from outside NIST must contact Robin Bickel; (301) 975-3668; at least 24 hours in advance.