Bennett Explores the Long-Run Economics of Natural Gas
Urges Improvements to Natural Gas Infrastructure and Access to Liquefied Natural Gas
Washington D.C.—As the winter heating season approaches, Senator Robert F. Bennett, Chairman of the Joint Economic Committee, held a hearing today on “The Long-Run Economics of Natural Gas,” to examine the factors that have contributed to the high gas prices of recent years and discuss possible ways to alleviate them.
“Natural gas is a valuable source of energy,” said Chairman Bennett. “It burns cleanly, is already in use all over the country, and natural gas reserves can be found plentifully throughout the world. Many American families now rely on natural gas, but find themselves faced with increasing costs.”
Chairman Bennett invited witnesses with a variety of expertise in the area of natural gas who are uniquely positioned to give a true perspective of the supply situation in the U.S. and the rest of the world. Panelists included Daniel Yergin, Chairman of Cambridge Energy Research Associates, who received a Pulitzer Prize for his book and mini-series entitled The Prize: The Epic Quest for Money, Oil, and Power; Paul Sankey, Senior Energy Analyst for Deutsche Bank; and Logan Magruder, Vice President of Berry Petroleum and President of IPAMS, the Independent Petroleum Association of Mountain States.
While the price of natural gas has increased sharply in recent years after an extended period of relative stability, the panel found that higher prices are not due to a shortage of natural gas; domestic reserves remain plentiful and vast foreign reserves have yet to be developed. Rather, the infrastructure necessary to bring more natural gas to the market failed to keep pace with increasing demand.
U.S. policies have also played a key role in the natural gas market for decades, first by controlling prices and thus deterring supply, and then later by encouraging demand by legislating for the use of cleaner burning fuels. While no one sees demand falling for natural gas, domestic investment in production has not kept pace. In part, this is because current law and litigation have made domestic production more difficult. Chairman Bennett urged the importance of improving our natural gas infrastructure, improving our access to liquefied natural gas, and improving real access to federal lands.
“Policies that simultaneously encourage demand and discourage supply cannot co-exist indefinitely,” said Bennett. “It is important the U.S. take the steps necessary to make accessing and transporting natural gas easier to make natural gas more accessible and affordable.”
“Natural gas is a valuable source of energy,” said Chairman Bennett. “It burns cleanly, is already in use all over the country, and natural gas reserves can be found plentifully throughout the world. Many American families now rely on natural gas, but find themselves faced with increasing costs.”
Chairman Bennett invited witnesses with a variety of expertise in the area of natural gas who are uniquely positioned to give a true perspective of the supply situation in the U.S. and the rest of the world. Panelists included Daniel Yergin, Chairman of Cambridge Energy Research Associates, who received a Pulitzer Prize for his book and mini-series entitled The Prize: The Epic Quest for Money, Oil, and Power; Paul Sankey, Senior Energy Analyst for Deutsche Bank; and Logan Magruder, Vice President of Berry Petroleum and President of IPAMS, the Independent Petroleum Association of Mountain States.
While the price of natural gas has increased sharply in recent years after an extended period of relative stability, the panel found that higher prices are not due to a shortage of natural gas; domestic reserves remain plentiful and vast foreign reserves have yet to be developed. Rather, the infrastructure necessary to bring more natural gas to the market failed to keep pace with increasing demand.
U.S. policies have also played a key role in the natural gas market for decades, first by controlling prices and thus deterring supply, and then later by encouraging demand by legislating for the use of cleaner burning fuels. While no one sees demand falling for natural gas, domestic investment in production has not kept pace. In part, this is because current law and litigation have made domestic production more difficult. Chairman Bennett urged the importance of improving our natural gas infrastructure, improving our access to liquefied natural gas, and improving real access to federal lands.
“Policies that simultaneously encourage demand and discourage supply cannot co-exist indefinitely,” said Bennett. “It is important the U.S. take the steps necessary to make accessing and transporting natural gas easier to make natural gas more accessible and affordable.”
