Higher price, not supply, force gas-to-oil switch

Journal Article · Mon Jan 01 04:00:00 EST 1979 · Energy User News; (United States)

OSTI ID:6299997

Ellis, P

The switch from natural gas to oil by Midwest industrial boiler users with interruptible service may be caused by rising gas prices rather than supply problems because rate cases have been decided on the basis of higher costs for these customers. Market analysts see the possibility of a trend when gas prices exceed those of heavy fuel oil. The industry forsees no shortages if pricing policies are reasonable and regulators promote imports from Canada and Mexico and the use of liquefied natural gas. A demand for methane-fueled cars could develop to absorb new gas supplies if the industrial market continues to decline. Although customers switching to oil require more storage space or frequent deliveries, some set a higher priority on supply security and cost.

• OSTI ID: 6299997
• Journal Information: Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 4:1; ISSN EUSND
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
030600 -- Natural Gas-- Economic
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
294003* -- Energy Planning & Policy-- Natural Gas
CHARGES
COMMERCIAL SECTOR
COMPETITION
ECONOMIC IMPACT
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUEL OILS
FUEL SUBSTITUTION
FUELS
GAS FUELS
GASES
INDUSTRIAL PLANTS
MARKET
NATURAL GAS
OILS
ORGANIC COMPOUNDS
OTHER ORGANIC COMPOUNDS
PETROLEUM PRODUCTS
REGULATIONS