Increasing competition in the natural gas market
In this second report, the major recent adjustments examined are growth in domestic spot market transactions, lower prices for Canadian gas imports, and lower projected prices for alternative oil supplies. With respect to current market conditions, the report concludes that natural gas prices are being held at artificially high levels by NGPA wellhead price controls, restricted access to available interstate pipeline capacity, rising transmission margins, and regulatory restrictions on gas-on-gas competition. Although the Federal Energy Regulatory Commission's (FERC) minimum bill rule (Order 380) and special marketing programs have increased competition, regulatory restrictions on spot sales programs and discriminatory behavior by gas pipelines limit competition, impede contract renegotiation, and deny residential and commercial consumers access to lower cost supplies. Therefore, the report recommends that regulatory restrictions on spot sales programs be removed and that steps be taken to increase access to available pipeline capacity. The report also recommends implementation of new rate designs encouraging pipeline companies to operate efficiently and to transmit accurate price signals. In assessing future market prospects under alternative policies, the report concludes that partial wellhead decontrol under the current law will increase competition and market flexibility, resulting in further real price declines from 1985 through 1987. The report also concludes that comprehensive deregulation, which consists of complete decontrol of wellhead prices, mandatory carriage, and repeal of demand restraints, would provide much greater benefits to the Nation and its consumers than would either decontrol under the NGPA or permanent extension of NGPA controls. 2 figures, 58 tables.
- Research Organization:
- USDOE Assistant Secretary for Policy, Safety and Environment, Washington, DC
- OSTI ID:
- 6003674
- Report Number(s):
- DOE/PE-0069; ON: DE85004930
- Resource Relation:
- Other Information: Portions are illegible in microfiche products. Original copy available until stock is exhausted. Second report required by Section 123 of the Natural Gas Policy Act of 1978
- Country of Publication:
- United States
- Language:
- English
Similar Records
Natural gas market through 1990
H. R. 2734: a bill to amend the Natural Gas Policy Act of 1978 to facilitate the transition of the natural gas industry to a more competitive market, and for other purposes. Introduced in the House of Representatives, Ninety-Ninth Congress, First Session, June 11, 1985
Related Subjects
29 ENERGY PLANNING
POLICY AND ECONOMY
NATURAL GAS
MARKET
NATURAL GAS POLICY ACT
COMPETITION
DEREGULATION
FORECASTING
PIPELINES
PRICES
PRICING REGULATIONS
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
LAWS
NATIONAL ENERGY ACT
REGULATIONS
030600* - Natural Gas- Economic
Industrial
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294003 - Energy Planning & Policy- Natural Gas
031000 - Natural Gas- Legislation & Regulations
293000 - Energy Planning & Policy- Policy
Legislation
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