Analysis of the economic impact of the deregulation of new natural gas wellhead prices

Technical Report · Tue Jul 01 04:00:00 EDT 1975

OSTI ID:7197817

Deregulation of wellhead natural gas would allow prices to rise; however, long-term (15-20 year) interstate contracts will limit increases to the customer to about $13 to $18 a year by 1977. A combination of shortages caused by declining exploration and development and increases in industrial and utility demand for natural gas resulted from regulation. Analyses of two hypothetical studies, one on the relationship of deregulation to Project Independence and one on the effects of wellhead price rising to equal oil on a Btu basis, conclude that continued regulation will: (1) cause industrial cutbacks with decline in employment and production; (2) require more oil imports to replace gas; (3) lower air quality because of increased use of oil and coal; and (4) cause interstate pipeline service to decline. (DCK)

• Research Organization: Federal Energy Administration, Washington, D.C. (USA); Federal Energy Administration, Office of Analysis, Office of Economic Impact, Washington, DC
• OSTI ID: 7197817
• Report Number(s): PB-246038; FEA/B-75/612
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
030600 -- Natural Gas-- Economic
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031000 -- Natural Gas-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
293000 -- Energy Planning & Policy-- Policy
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294003* -- Energy Planning & Policy-- Natural Gas
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FUEL GAS
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GOVERNMENT POLICIES
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NATURAL GAS
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