The glossary of terms is arranged alphabetically. Click on the letters below to find terms beginning with that letter.
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Short or Short Position: 1) The market position of a futures contract seller whose sale obligates him/her to deliver the commodity unless he/she liquidates his/her contract by an off setting purchase. 2) A trade whose net position in the futures market shows an excess of open sales over open purchases. 3) The holder of a short position. 4) In the options market, the position of the seller of a call or a put option, who is obliged to take a futures position if he/she is assigned for exercise.
Shoulder Months: Normally defined as spring and fall months when gas demand is lowest.
Spot Market: A market characterized by short-term, typically interruptible or best efforts contracts for specified volumes of gas. The bulk of the natural gas spot market trades on a monthly basis.
Spot Month: The futures contract closest to maturity. The nearby delivery month.
Standby Service: A service that involves a pipeline or LDC guaranteeing to fill in with gas supplies in the event a transportation customer's other supplies are inadequate or not available.
Storage: Facilities used to store gas that has been transferred from its original location. Usually consists of natural geological reservoirs like depleted oil or gas fields, water-bearing sands sealed on top by impermeable cap rock, underground salt domes or bedded salt formations.
Stranded Costs: Costs associated with certain pipeline assets (like system gas in storage fields and capacity on upstream pipelines) that can no longer be assigned to customers under the reorganization of services mandated by Order 636.
Swing Supply: Gas volumes taken as needed, generally to meet peaking demand above a user's base load gas supply.