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

Natural gas deregulation analysis

Technical Report ·
OSTI ID:7199951
Deregulation of natural gas will cause prices to rise; higher prices will induce higher production. Without deregulation interstate consumers of gas will suffer much more from declining gas production than intrastate consumers. If natural gas wellhead regulation continues at current real prices, total domestic production could decline from 21.6 TCF in 1974 to an estimated 18 TCF in 1985. However, if new contracts are deregulated, 1985 production could increase to 22.3 TCF. It is also pointed out that gas shortages increase oil consumption and oil imports. The costs of natural gas deregulation in the short- and long-term are discussed. The long-run effects of gas deregulation on residential fuel bills are estimated for some of the proposed legislation. Current regulations have caused a reduction in interstate sales from over 13 TCF to 11.6 TCF in 1974. The various legislative options for deregulation would maintain or increase sales to interstate markets without decreasing the volume of intrastate sales. (BYB)
Research Organization:
Federal Energy Administration, Washington, D.C. (USA); Federal Energy Administration, Office of Policy and Analysis, Washington, DC
OSTI ID:
7199951
Report Number(s):
NP-20698; FEA-76-3
Country of Publication:
United States
Language:
English