Soaring prices for gas from deep wells may force early rewriting of 1978 law

Journal Article · Sat Nov 21 04:00:00 EST 1981 · Natl. J.; (United States)

OSTI ID:5913083

Corrigan, R

Newly tapped high-pressure deep wells of natural gas are causing a rapid escalation of prices and regional disruptions even though a gas-deregulation bill was pulled back. A loophole in the 1978 Natural Gas Policy Act is allowing 450 billion cubic feet of deregulated gas into the delivery system that is still covered by a complex price-control formula. Deep-gas producers feel the 1978 law is working fine, while distributors and customers worry about both unpredictable supplies and unacceptable prices. Deregulation advocates point to strong inter-pipeline competition as a moderating market force and suggest that customers will not benefit from continued price controls if pipelines bid up the price. Deregulation could require new allocation regulations, however, and opponents feel this is a bad time to impose more inflation. (DCK)

• OSTI ID: 5913083
• Journal Information: Natl. J.; (United States), Journal Name: Natl. J.; (United States) Vol. 47; ISSN NAJOD
• 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
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294003* -- Energy Planning & Policy-- Natural Gas
COMPETITION
DEREGULATION
ENERGY SOURCES
ENERGY SYSTEMS
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
LAWS
MARKET
NATIONAL ENERGY ACT
NATURAL GAS
NATURAL GAS DISTRIBUTION SYSTEMS
NATURAL GAS POLICY ACT
PRICES