NGPA's January 1, 1985, decontrol date: an overview of the possible effects on producer prices
About 40% of interstate natural gas supplies will no longer be subject to federal control after January 1, 1985. The author examines the expected changes in the natural gas market in response to decontrol and the impacts of those changes on producer prices. Of particular interest is the extent and potential effects of the ''fly-up'' of prices, currently estimated at a range of 9 to 20%. Competition and market forces, however, will work to mitigate any increases. The average price is likely to approach the price for alternative fuels during the first quarter, but contracts renegotiated in this period and later are likely to have mechanisms allowing price flexibility both upward and downward, in contrast to most pre-1982 contracts. 1 figure, 3 tables.
- Research Organization:
- Texas A and M Univ., College Station
- OSTI ID:
- 5978649
- Journal Information:
- Oil Gas Tax Q.; (United States), Journal Name: Oil Gas Tax Q.; (United States) Vol. 33:2; ISSN OGTQD
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
030600* -- Natural Gas-- Economic
Industrial
& Business Aspects
031000 -- Natural Gas-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
294003 -- Energy Planning & Policy-- Natural Gas
COMPETITION
CONTRACTS
DEREGULATION
ECONOMIC IMPACT
INDUSTRY
LAWS
LEGAL ASPECTS
MARKET
NATIONAL ENERGY ACT
NATURAL GAS INDUSTRY
NATURAL GAS POLICY ACT
PRICES