Running Head: INTEGRATIVE ECONOMICS

Integrative Economics
Assignment 7.1
Candace Botello
January 15, 2014
Jones International University











Running Head: INTEGRATIVE ECONOMICS


Integrative Economics
Integrative economics is, an economic arrangement between different regions marked
by the reduction or elimination of trade barriers and the coordination of monetary and fiscal
policies. The aim of economic integration is to reduce costs for both consumers and producers,
as well as to increase trade between the countries taking part in the agreement (Investopedia
US, A Division of ValueClick, Inc, 2013).
Integrative Economics and Natural Gas
Several companies have taken this approach in the last decade to benefit the company
overall and this methodology is not only appealing plus stimulating to the consumer, but has
become a common practice in the natural gas industry. There is an association called The Gas
Integrated Resource Plan (GIRP) and the purpose of this group is to, combine rigorous technical
analysis and public participation to ensure safe, reliable and cost effective natural gas supply
(Colorado Springs Utilities, n.d.). Natural gas is important to human life, it is one of the major
sources for electricity, and the United States uses about 25% of natural gas for consumption.
There are over 6,300 producers, 530 natural gas processing plants, 160 pipelines, and 123 storage
operators, 260 companies that market, and 1,200 distribution companies in the United States that
deal with natural gas. Demand for natural gas is on a steady incline and at some point will turn
into the only utilizable resource. Natural gas sales spiked in January and February; however,
sales are not quite as high during the months of July and August. Natural gas is more cost
effective and more beneficial to the world than any other resource produced or utilized.


Running Head: INTEGRATIVE ECONOMICS


Energy Consumption by Fuel

Getting Natural Gas to Market - Prior to Deregulation and Pipeline Unbundling

Simplified Structure of Industry after Pipeline Unbundling





Running Head: INTEGRATIVE ECONOMICS


Natural gas Volatility and Price Levels at Henry Hub














Running Head: INTEGRATIVE ECONOMICS

References
Colorado Springs Utilities. (n.d.). 2011 Natural Gas Integrated Resource Plan. Retrieved January
2014, from Colorado Springs Utilities: https://www.csu.org/CSUDocuments/girp.pdf
Enviornmental Defense Fund. (2014). Why is natural gas important? Retrieved January 2014,
from EDF: Enviornmental Defense Fund: http://www.edf.org/climate/why-natural-gas-
important
Investopedia US, A Division of ValueClick, Inc. (2013). Economic Integration. Retrieved
January 2014, from Investopedia: http://www.investopedia.com/terms/e/economic-
integration.asp
Naturalgas.org. (2011). Industry and market structure. Retrieved January 2014, from
Naturalgas.org: http://www.naturalgas.org/business/industry.asp