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Competing for gas sales in a fluctuating market

Conference · · Soc. Pet. Eng. AIME, Pap.; (United States)
OSTI ID:6522473

The gas industry has experienced a declining market during the past two years. The Anadarko Basin has been particularly hard hit due to the higher costs experienced for drilling in this area and the fact that a substantial portion of the gas is deregulated and has been sold at prices above the market clearing price if sold incrementally. This has caused many purchasers to reduce the prices paid at the wellhead through market-out clauses in the gas purchase contracts. The demand for natural gas increased each year from the end of World War II until the early 1980's. The gas supply was generally adequate to meet this demand until the early 1970's. The demand increased as a result of price controls of interstate gas at levels below cost of alternate fuels. As the country suffered through a gas supply shortage during the 1970's, Congress and the President were forced to take action to increase the gas supply. The result was the passage of the natural gas policy act of 1978 (NGPA).

Research Organization:
El Paso Natural Gas Co.
OSTI ID:
6522473
Report Number(s):
CONF-8404161-
Journal Information:
Soc. Pet. Eng. AIME, Pap.; (United States), Journal Name: Soc. Pet. Eng. AIME, Pap.; (United States) Vol. SPE 12617; ISSN SEAPA
Country of Publication:
United States
Language:
English