Consumers may not benefit from wellhead price controls on natural gas

Journal Article · Mon Jul 01 04:00:00 EDT 1985 · Econ. Rev.; (United States)

OSTI ID:5161098

Brown, S P.A.

Opposition to further decontrol of natural gas wellhead prices comes from concern that consumer prices would rise, but it is not clear that existing wellhead price controls have reduced consumer prices for natural gas. Empirical evidence suggests that consumers may be paying more and consuming less gas under federal price controls. Middlemen are charging more than the average wellhead price plus an efficient transportation charge. Government regulation of natural gas middlemen has not been effective in shifting benefits forward to consumers. At least some of the benefit is retained or dissipated by pipeline companies and their affiliates and by collection and distribution companies. Price controls have also led to a higher average wellhead price than would prevail in an unregulated market. 2 tables.

• Research Organization: Federal Reserve Bank of Dallas, TX
• OSTI ID: 5161098
• Journal Information: Econ. Rev.; (United States), Journal Name: Econ. Rev.; (United States); ISSN ECRVD
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
030600* -- Natural Gas-- Economic
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
294003 -- Energy Planning & Policy-- Natural Gas
CONSUMER PROTECTION
DEREGULATION
ECONOMETRICS
ECONOMIC IMPACT
ECONOMICS
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
GOVERNMENT POLICIES
INDUSTRY
NATURAL GAS
NATURAL GAS INDUSTRY
PRICES
PRICING REGULATIONS
REGULATIONS
WELLHEAD PRICES