Columbus, Ohio (Platt's)--20Sep2000
The US is in the midst of a energy price "shock" that could become a crisis if the situation is mismanaged, energy analyst Daniel Yergin said at the Governors' Natural Gas Summit in Columbus, Ohio, Wednesday.
Yergin, president of Cambridge Energy Research Associates, said a "continent-wide response" by industry and, if necessary, government, would be needed to address the current price shocks and deal with long-term energy supply needs.
Price spikes this winter may be inevitable, he said, but the impact on consumers can be cushioned through a combination of education and conservation measures as well as low income energy assistance plans. A long-term crisis can be avoided through new development and drilling incentives, he added.
After the drilling slowdown following the oil and gas price collapse in 1998-1999, E+P activity is beginning to pick up, said Yergin, author of the Pulitzer Prize winning book about the history of the oil industry, "The Prize." But, he noted, it will take time for "the iron law of lead times" to take effect.
Yergin called for the US to coordinate supply development policy efforts with Mexico and Canada. "This is not just a US issue, and there will not be just US solutions," he said. Canada provides about 15% of the natural gas used in the US, while Mexico is undergoing a major transition and is a trade partner for gas. |
