To: Raymond Duray who wrote (6400 ) 12/17/2000 11:56:42 PM From: margie Read Replies (1) | Respond to "The Clinton administration has pushed the country into an over-reliance on natural gas at the same time it has restricted drilling on federal land." The Clinton administration has pushed the country into an over-reliance on natural gas at the same time it has restricted drilling on federal land, according to Republicans present at a Senate Energy and Natural Resources Committee hearing on the recent gas price spike."The reason natural gas prices are so high is because the United States of America has decided that's the only fuel we want to use," said Sen. Pete Domenici, R-N.M. "...America ought to be using other energy sources to produce electricity, but we are frightened to death." Longer-term, Murkowski said solutions to gas supply constraints include increased access to federal land, speedier permitting for gas pipelines and support for a proposed gas pipeline from Alaska's North Slope through Canada. Mark Mazur, head of the Energy Information Administration, said a U.S.-Canada border price of $4 per thousand cubic feet, or Mcf, the equivalent of an MMBtu, would be needed to support the Alaskan gas line. The EIA has forecast wellhead gas prices will fall to an average $2.49/Mcf in 2005 from current levels before rising gradually to $2.69 in 2010.Murkowski and others on the panel - mainly Republicans from Western states - also called for more access to gas-rich federal land such as the Rocky Mountains. Domenici cited an industry estimate that nearly 200 trillion cubic feet of gas - more than eight years of current demand - is either off-limits or severely restricted to drilling.EIA's Mazur acknowledged much of the country's gas is unavailable as a result of drilling moratoria or restrictions. He said restricted areas of the Rocky Mountains hold an estimated 108 trillion cubic feet of gas. "Increased access to these areas could provide new fields to replace older fields and serve to mitigate future price increases," he said, adding, however, that the reserves are expected to be costly to develop. Mazur estimated it would take between six and 18 months to bring gas production online, and said the industry began stepping up activity in May as gas prices recovered from their historically low levels of 1998-99. As a result, U.S. gas output is expected to rise only 0.7% in 2000 before climbing 3.9% in 2001. "Gas Bills Will Skyrocket This Winter, Energy Experts Tell Senate Committee" "Consumers will face record natural-gas prices all winter because of soaring demand and a dwindling supply, energy experts told Congress. The likelihood of relief in the form of more-plentiful gas supplies "is not high" in the near future because demand is up by 5.9%, and the nation's gas reserve "cushion" continues to shrink, said Mark J. Mazur, acting administrator of the federal Energy Information Administration. Senate Energy Committee Chairman Frank Murkowski (R., Alaska) said a likely political response to the prices could be a congressional decision to open more federal land for oil and gas exploration. Sen. Murkowski , noting that spot market prices for gas are approaching $10 per thousand cubic feet -- nearly quadruple last year's level -- said the next Congress must develop "a comprehensive and balanced national energy strategy for the next decade." Dr. Mazur and other witnesses told the committee that high gas prices are causing pain all across the spectrum, from homeowners to industries such as fertilizer manufacturers and chemical producers that use natural gas as a feedstock. He estimates that the typical homeowner will see a 50% increase in gas bills this winter.
