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

First report required by Section 123 of the Natural Gas Policy Act of 1978

Technical Report ·
OSTI ID:7071902

Section 123 of the Natural Gas Policy Act of 1978 (NGPA) requires the Department of Energy to submit two reports on the natural gas market to the President and Congress. This is the first report. This report examines the current conditions in the natural gas market and analyzes the future effects of three alternative natural gas policies in terms of prices, supply, demand, competitive conditions, market forces, and market equilibrium. The report concludes that gas prices will not rise significantly or fly up after January 1, 1985, when partial decontrol becomes effective under the NGPA. The report also concludes that current federal regulations have inhibited the gas market from responding efficiently to changing market conditions and that the entire Nation would benefit from comprehensive deregulation legislation in the following ways: economic benefits of $33.6 billion to $48.7 billion as a result of greater efficiency, higher domestic gas production, and lower payments for gas and oil imports; recovery of an additional 27 trillion to 48 trillion cubic feet of domestic low-cost, old gas supplies that would not be produced under the NGPA; lower consumer prices for natural gas - $0.56 per thousand cubic feet lower in 195 than under the NGPA, and $0.27 to $0.45 per thousand cubic feet lower from 1986 to 1995 than under the NGPA; higher levels of both domestic gas consumption and domestic gas production than under the NGPA; and greater flexibility in the gas market to adjust to changing circumstances, thereby preventing the recurrence of shortages and surpluses.

Research Organization:
USDOE Assistant Secretary for Policy, Safety and Environment, Washington, DC
OSTI ID:
7071902
Report Number(s):
DOE/PE-0054; ON: DE84015690
Country of Publication:
United States
Language:
English