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Title: Study of alternatives to the Natural Gas Policy Act of 1978

Technical Report ·
OSTI ID:5993488

This report presents the results of the Department of Energy's review of natural gas policies. Its purpose is to define and evaluate alternatives to current policy which deregulate the US natural gas market. The review was initiated in March of 1981 for three reasons. First, natural gas plays a critical role in US energy markets, accounting for 25 percent of US energy use. Second, oil and gas market conditions have changed considerably since current natural gas policies were established in 1978. Indeed, in recognition of these changes, Congress modified national policy on gas use during the budget reconciliation process. Third, the Administration is committed to evaluating whether the costs of massive Federal intervention into the operation of markets outweigh the benefits. This study focuses on the wellhead and incremental pricing provisions of the Natural Gas Policy Act of 1978 (NGPA). It seeks to quantify the costs and benefits of alternative natural gas strategies. Specifically, the study evaluates the impacts of proposals to modify the NGPA on: efficiency of natural gas markets; oil import levels and energy security; supply, demand, and price of natural gas; performance of the US economy; and consumer wellbeing. The consequences of current and alternative gas policies under mid-range assumptions about future conditions are presented in Chapters II-V. Substantial uncertainty, however, surrounds the future course of the US natural gas market.

Research Organization:
USDOE Office of Policy, Planning and Analysis, Washington, DC
OSTI ID:
5993488
Report Number(s):
DOE/PE-0031; ON: DE82003100
Country of Publication:
United States
Language:
English