(NAPSA)—Lowering natural gas prices begins with increasing supply to meet demand. That’s the word from industry experts and a growing number of Americans are beginning to understand. In fact, Congress is considering legislation that would give natural gas suppliers access to the outer continental shelf to relieve the natural gas demand/supply imbalance. Natural gas is used to meet nearly one-fourth of the country’s energy needs and is used for purposes ranging from cooking to dehumidifying schools to generat- ing electricity. However, existing natural gas wells are running low, causing prices to jump. The Amer- ican Gas Association (AGA)estimates that there is enough natural gas in the outer shelf to allow for nearly 30 more years’ worth of Natural Gas Supply and Demand: Walking the Tightrope Voters now favor increasing our natural gas supplies. Currently, about 20 percent of the country’s natural gas comes from the Gulf of Mexico. When the 2005 hurricanes hit, production was severely disrupted, causing wholesale natural gas prices to rise, according to the U.S. Energy Information Administration. The new offshore natural gas wells would be produced using technology that not only helpsefficiently draw natural gas from the ground, but that helps protect the environment as well. The technol- Adding supply-side resources to other parts of the country can help protect natural gas (and prices) from a repeatof last year. Perhaps surprisingly, consumers aren’t the only ones hoping natural gas prices will drop. cess natural gas and has been seen as a cost-effective solution that balances America’s need for more natural gas and its need to prices, too. Higher prices have actually hurt natural gas utilities for the simple reason that people use less natural gas when prices American consumption. ogy represents a new way to ac- protect the environment. In addi- Utilities say they want lower are up. By law, utilities are pre- tion, natural gas by its very nature vented from profiting on current oil, it dissipates when it hits the environment (as opposed to spilling), meaningoffshore wells pose a minimalrisk to aquaticlife. If access to the outer continental shelf expands, it will add to and diversify the nation’s sources of natural gas supply, ensuring that there is enough gas to meet is relatively clean to mine. Unlike In addition to increasing sup- ply, the AGA says accessing the outer shelf will diversify America’s natural gas supply, makingit less vulnerable to hurricanes and other problems. prices. demand. A more diversified, less vulnerable supply of natural gas is considered to be the best way to help stabilize prices. For more information, visit www.aga.org.
