Impact of natural gas price decontrol on gas supply, demand and prices
AGA's analysis of the impact of gas price decontrol concludes that because prices are already rising rapidly under the existing law, the widespread concern that prices will suddenly jump in 1985 is somewhat overstated. This conclusion depends, however, on the indefinite price escalator clauses in the purchase contracts being defused; if the clauses remain effective, wellhead prices will rise in real terms by 51% during 1984-85, making gas uncompetitive in the industrial market. Conversely, due to steadily declining volumes of cheaper old gas, prices would rise without the escalators by only 7%. Foremost among the gas industry's requirements is a rate of return that will enable distribution companies and pipelines to strengthen their systems and expand their service. The financial integrity of the utilities is essential to creating sufficient demand to explore and develop domestic gas resources.
- OSTI ID:
- 6570166
- Report Number(s):
- CONF-820814-
- Journal Information:
- Proc., Intersoc. Energy Convers. Eng. Conf.; (United States), Journal Name: Proc., Intersoc. Energy Convers. Eng. Conf.; (United States) Vol. 17; ISSN PIECD
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
030600* -- Natural Gas-- Economic
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
294003 -- Energy Planning & Policy-- Natural Gas
CORRELATIONS
DEREGULATION
ENERGY SOURCES
FLUIDS
FORECASTING
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GAS UTILITIES
GASES
NATURAL GAS
PRICES
PRICING REGULATIONS
PUBLIC UTILITIES
REGULATIONS
SUPPLY AND DEMAND
WELLHEAD PRICES