But the point is that you are looking, as is Jerome I suspect, for complexity that is not there. A Unit redeemable in payment for gas supplied is so simple it's almost embarrassing. It is entirely agnostic as to the supply, provided the supplier is a member of the clearing union.
See my answer to Jerome. Sure, we need a clearing system: this would be an International Energy Clearing Union. Exchanges of energy-as-currency (ie Units) would take place on credit terms, with debit balances subject to a mutual guarantee and supported by both those with positive and negative energy balances.
We will still have supply agreements, and we will still have a physical market price which varies with supply and demand for gas.
But Units are not about supply, but payment in respect of the agreed transaction.
Unitisation is capable of changing energy financing totally. "Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky
- Jake If you only spend 20 minutes of the rest of your life on economics, go spend them here.
Electronic scrip, based upon the use value of:
(a) location - replacing mortgages; and
(b) energy;
is what is needed, and would circulate on a WIR style credit clearing / accounting system, within a suitable framework of trust.
"Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky
This is what caused the so called sub prime crisis.
For example - for every 100 airmiles that , say only 80 are redeemed. But since you are short of cash, you decide to trade your liability for 75cts on the dollar, and in this way you strengthen your balance sheet - you remove $1 dollar of debt for 75cts payment,
The buyer, is betting that he can reduce that 80% to below 75%, or alternatively can push back the payout so that the discounted value is less than the face value
Then lets say the buyer also picks up Lufthansa Miles'n more, Emirates Skymiles, Delta whatever, and then bundles them all into a package, which he splits four ways into four separate securities, each of which he sells on the market.
And what you have is a classic derivatives market.
