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NGPA's January 1, 1985, decontrol date: an overview of the possible effects on producer prices

Journal Article · · Oil Gas Tax Q.; (United States)
OSTI ID:5978649

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