inflation - Oeconomia.net - Gas-Oil


How are oil and natural gas prices estimated?

  • h. Expected crude oil and natural gas prices are estimated for the producing life of the well(s). Prices are usually held constant at the current local level if a real discount rate is used or increased at the projected inflation rate if a nominal discount rate (which includes inflation) is used.

How do oil prices affect inflation in Ireland?

  • The direct effects on inflation are stronger in Ireland than in the euro area, reflecting the higher dependence on both oil and gas. The pass-through of higher oil prices to petrol and diesel prices at the pumps is slower than the euro area average but there is no evidence of pricing asymmetries.

What is oil & gas income?

  • Income is a broad concept including almost any “accession to wealth.” Common income items in the oil and gas industry are: • the sale of oil and gas; • lease bonuses; • royalty income; • overriding royalty income; • income from a net profits interest; • some types of production payments; and • gains on the sale of oil and gas property.

How does oil affect fertilizer prices?

  • A neg-ative oil supply shock that raises oil prices by 10 per-cent leads cereal prices to rise by about 2 percent after three to four quarters (suggesting a modest effect from biofuels, since the cost share of oil in cereal production varies from about 10 to 15 percent). Prices of fertiliz-ers, in contrast, have a delayed but important effect. A

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