Gas deregulation could cause consumer backlash

Journal Article · Mon Dec 05 04:00:00 EST 1977 · Energy User News; (United States)

OSTI ID:5352135

Alhadeff, V D

The ENI Corp.'s president presents his perception of the gas deregulation issue as seen from the view of an independent oil company. Contrary to the rest of the industry, he advocates regulation of both inter- and intrastate natural gas markets on the grounds that substantial price increases have occurred under regulation. Deregulation could bring about prices so high that consumer and legislative reactions would become even more punitive. He further points out that a shortage of drill rigs is as great a constraint as price on the rate of well drilling. High profits are already available for the independent oil companies, who do 90% of the onshore drilling and who anticipate a gas surplus by 1980 even though gas production has declined in the Gulf States. The Rocky Mountain area has been the site of large drilling discoveries and has raised the question of other undiscovered natural reserves. Although opinions vary on the extent of potential reserves, he feels adequate money and opportunity (with the exception of the rig shortage) are available. Instead, he advocates legislation allowing tax credits that will encourage reinvestments. (DCK)

• Research Organization: ENI Corp., Seattle
• OSTI ID: 5352135
• Journal Information: Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 2:48; ISSN EUSND
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
031000 -- Natural Gas-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294003* -- Energy Planning & Policy-- Natural Gas
CHARGES
CONSUMER PROTECTION
COST
DRILLING
DRILLING EQUIPMENT
ECONOMIC POLICY
ENERGY POLICY
ENERGY SOURCES
ENERGY SUPPLIES
EQUIPMENT
EXPLORATION
FINANCIAL INCENTIVES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GASES
GOVERNMENT POLICIES
LEGISLATION
NATURAL GAS
NATURAL GAS WELLS
PUBLIC OPINION
PUBLIC RELATIONS
REGULATIONS
RESERVES
TAXES
WELLS