Natural gas market deregulation: current opportunities and problems

Journal Article · · TIPRO Rep.; (United States)

OSTI ID:5942039

Holloway, M L; Langston, V

The Natural Gas Policy Act (NGPA) was established in 1978. NGPA provided for federal price ceilings but also produced three negative market impacts (1) created a major gap between oil and gas prices; (2) biased drilling efforts in favor of oil; and (3) limited access to reserves by intrastate pipelines. The price ceiling schedules of NGPA present a major national energy problem as we move to partial decontrol in 1985. Gas production data and reserve additions data indicate a growing problem for the intrastate pipelines. The result of production and reserve acquisitions for the two markets since the mid 70's is that the reserve inventory position of the intrastate pipelines and direct customers may be in jeopardy. The relative reserve positions of intra vs. interstate pipelines when matched with current average purchase prices leads to concern about how deregulation is to be accomplished. Concerns over the impacts of decontrol on residential consumers and the inflation rate will be important political considerations. It appears that the NGPA and prior federal laws and rules have failed to deal adequately with the natural gas market. Changes should be made now while the demand for gas is being met. Although prices will increase under natural gas decontrol, the overall, longer term impacts on inflation will be positive as energy markets adjust, oil imports decrease and the value of the dollar improves. 10 figures. (DP)

• OSTI ID: 5942039
• Journal Information: TIPRO Rep.; (United States), Journal Name: TIPRO Rep.; (United States) Vol. 33:3; ISSN TIRED
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
030600* -- Natural Gas-- Economic
Industrial
& Business Aspects
DEREGULATION
ECONOMIC IMPACT
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
LAWS
MARKET
NATIONAL ENERGY ACT
NATURAL GAS
NATURAL GAS POLICY ACT
PIPELINES
PRICES
PRICING REGULATIONS
REGULATIONS
RESERVES
RESOURCES