Natural gas: oversupply is still a problem
Prices for natural gas at the wellhead, city gate and burner tip peaked in 1984-1985. Market softness and surplus capability (the bubble) were the contributing factors. This year, it is expected that these same factors, plus the pressure of increased imports from Canada, will drive marginal prices down even further, to below $1.75 per MCF before the market finally finds bottom. Spot sales in 1985, at ever lower prices, proliferated as producers engaging in severe gas-to-gas competition sought buyers for new gas and for old gas released under the provisions of FERC's (Federal Energy Regulatory Commission) special marketing programs (SMPS). However, while certain users are enjoying or have enjoyed low cost gas made available through gas-to-gas competition, the market itself is not going anywhere. Year-to-year sales are down and show no real prospect of any improvement in 1986. The economy, which is geared to conservation and energy efficiency, is without expectations for significant gains this year and will not use more gas simply because it is cheaper.
- Research Organization:
- The Gas Price Report, Houston
- OSTI ID:
- 5830799
- Journal Information:
- World Oil; (United States), Vol. 202:2
- Country of Publication:
- United States
- Language:
- English
Similar Records
Natural Gas Monthly, December 1984
Natural Gas Monthly, September 1984
Related Subjects
POLICY AND ECONOMY
03 NATURAL GAS
NATURAL GAS
PRICES
SUPPLY AND DEMAND
CANADA
ECONOMICS
ENERGY CONSERVATION
ENERGY EFFICIENCY
IMPORTS
MARKET
SALES
EFFICIENCY
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
NORTH AMERICA
294003* - Energy Planning & Policy- Natural Gas
030600 - Natural Gas- Economic
Industrial
& Business Aspects