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America's Natural Gas Supply Challenge
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During the 1990s, natural gas customers enjoyed relatively stable
prices because supplies exceeded market demands. Recently
though, customers have endured increases and wide
fluctuations in natural gas prices because gas supply and
demand are so tightly balanced that any change in market
demand or available supply is reflected immediately in
changing prices.
The growing discrepancy between increasing demand for
natural gas and available supplies could result in continued
higher prices for natural gas consumers unless public
policies and personal attitudes change about bringing fresh
supplies of natural gas to market.
Delta believes that one of the best ways to keep prices
reasonable for households, schools, factories and other
natural gas customers is to ensure that supplies meet
anticipated demand. Increased natural gas supplies must come
from two sources:
- Traditional supplies (onshore and offshore wells in the
U.S. and Canada), which meet most current U.S. natural gas
needs. Natural gas production will continue to "migrate",
such as to deeper waters of the Gulf of Mexico and to Rocky
Mountain basins. Areas that are currently off-limits to gas
production must also come into play.
- Non-traditional supplies, such as Alaska natural gas and
liquefied natural gas (LNG), will help bridge the supply
gap. In part, this will require construction of a pipeline
to transport natural gas from Alaska to the lower 48 states
and promoting expansion or construction of LNG import and
storage terminals.
Federal and state officials must take the lead in
overcoming a pervasive "not in my backyard" attitude toward
energy infrastructure development; and current restrictions
on access to new sources of supply must be re-evaluated in
light of technology developments that have reduced the
costs, uncertainty and environmental impact of gas
exploration and production. |
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