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U.S. Department of Energy
Office of Scientific and Technical Information

Natural gas market through 1990

Technical Report ·
OSTI ID:6325977

This report is the fourth in a study of the Natural Gas Policy Act of 1978 (NGPA), in which the Energy Information Administration (EIA) seeks to provide information and analysis describing the effects of the NGPA and proposed changes. It presents an analysis of natural gas wellhead price deregulation, comparing the projected results under the current NGPA decontrol schedule with those under three alternatives: the Administration proposal, entitled the Natural Gas Consumer Regulatory Reform Amendments of 1983; an alternative phased decontrol; and continuance of the current NGPA price ceilings indefinitely. The possible consequences of the alternative policies through 1990 are discussed along with the impacts of key assumptions on the NGPA projections. The four cases in this report are specified. Those associated with the downstream market, that is, the distributors and the consumers, generally favor the regulation of wellhead prices. The continued controls case extends price controls indefinitely. Most producers and some groups representing large industrial users favor wellhead price decontrol. The Administration proposal effectively allows all gas to be deregulated by 1985 by allowing any party to a contract to abrogate the contract if it is not renegotiated prior to January 1, 1985, while the phased decontrol case raises price ceilings on all gas until 1985 when all gas is decontrolled. Pipeline companies have expressed concern over the potential fly-up in the wellhead price when gas is decontrolled.

Research Organization:
USDOE Energy Information Administration, Washington, DC. Office of Oil and Gas
OSTI ID:
6325977
Report Number(s):
DOE/EIA-0366; ON: DE83011891
Country of Publication:
United States
Language:
English