Quest Resource: Natural Gas Marketing
Award Winner: Omega Rho National
Student Project Competition
Client: Quest Resource, Inc.
Team: John Jarvis, Claudia Johnson, Liana Vetter
Faculty advisor: Barr Year: 2004
Documents: Final report (Word), final presentation (PPT)
Currently, Quest guarantees about 85% of its gas through monthly contracts, while selling the remaining at the daily price. The amount to guarantee per sale point per month is a major decision within Quest. The motivation for Quest to optimize this process is two-fold. First, by paying close attention to past production, optimization can help assure that Quest will rarely produce under their monthly guarantee and will never incur a penalty for that underproduction. Second, through researching the historical relationship between Quest’s contract prices and the corresponding market prices for each month, Quest can better estimate the contract volume that will maximize revenue. Read more…