DOE study: decontrol natural gas by 1982

Journal Article · Sun Mar 01 04:00:00 EST 1981 · Am. Oil Gas Reporter; (United States)

OSTI ID:6156908

A US Department of Energy Policy Report admits of mistakes in present natural gas regulations, and foresees the country's foreign energy dependence to be virtually unchanged by the end of the decade. Further, the report says legislation should be developed to exempt newly discovered oil and incremental tertiary production from the crude oil Windfall Profit Tax. The possibility of establishing a strategic natural gas reserve also is suggested. In addition, it recommends decontrol of natural gas prices by the end of 1982, suggesting it would be counterproductive to await the 1985 date set under current law. The report says the present decontrol strategy, enacted in 1978, creates considerable uncertainty about the future natural gas market, and continues to keep the resource underpriced and inefficiently used. Decontrol in 1982 could reduce oil imports an estimated 300,000 to 600,000 bpd by 1985, depending on the method of decontrol used. However, the report points out, new policies that would be beneficial to the domestic gas supply also would have a slowing effect on the nation's economy. Accelerated decontrol, and the transfer of wealth from consumers to gas producers, would increase inflation in the short run and slow real growth of the gross national product.

• OSTI ID: 6156908
• Journal Information: Am. Oil Gas Reporter; (United States), Journal Name: Am. Oil Gas Reporter; (United States) Vol. 24:12
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
030600 -- Natural Gas-- Economic
Industrial
& Business Aspects
031000* -- Natural Gas-- Legislation & Regulations
CONTROL
DEMAND
ENERGY DEMAND
ENERGY SOURCES
ENHANCED RECOVERY
EXPLORATION
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
LEGISLATION
NATIONAL ORGANIZATIONS
NATURAL GAS
PROFITS
RECOVERY
REGULATIONS
TAXES
US DOE
US ORGANIZATIONS
WINDFALL PROFITS TAX