In opening the National Petroleum Council’s Natural Gas Summit on Thursday (6/26), Secretary of Energy Spencer Abraham noted that natural gas storage is 32 percent below last year’s level and 22 percent below the previous five-year average, while demand for natural gas had increased over the last decade to levels that were difficult to sustain under current supply and production constraints.
“But this is not just about low reserves or supply and demand imbalances,” Abraham told the Summit audience. “This is about real people and real problems they confront when gas prices soar. It’s about senior citizens, living on fixed incomes, being forced to choose between skyrocketing heating bills or some other of life’s necessities.”
“This natural gas summit comes at a critical time because, along with our discussions on things we can do in the short term, we must also focus on the smart uses of energy,” he continued. “Natural gas demand is projected to grow 50 percent over the next 25 years. Increasing our production and storage capacities is important, but we must also focus on using our natural gas resources wisely and to our own best benefit. That is another aspect of the discussion that I’ve asked the NPC to focus on.”
Last May, Abraham asked the NPC to conduct a comprehensive and wide-ranging study of natural gas in the United States during the 21st century that was to be completed later this year. The study will address resources for capital investment, the role of technology, access to our nation’s resource base, new sources of supply from Alaska and Canada, liquefied natural gas imports and the long-term potential of unconventional resources such as methane gas hydrates, among others.
But in the interim, the Energy Information Administration, the independent statistical arm of the Department of Energy, reported that natural gas prices remained well above average and were not expected to ease until 2004. The Secretary then called upon the NPC to hold the Natural Gas Summit to address problems, solutions, and action that could be taken immediately to ease short-term supply constraints.
“Our goal coming out of this summit is to take quick and decisive action where possible to diminish the immediate impact of lower-than-expected supplies of gas,” Abraham said. “I am pleased to announce today that the Department of Energy will soon undertake an ambitious Natural Gas Data Collection Initiative that will fundamentally improve the way EIA and our Office of Fossil Energy gather and disseminate information about the use and origin of natural gas supplies in the U.S.”
The initiative will include conducting new surveys of natural gas production as well as on-system liquefied natural gas storage. EIA will also collect critical information on natural gas imports each month, instead of quarterly, in order to enhance and streamline their data-collection operations, and will better regionalize their Short Term Energy Outlook.
In addition, Abraham announced that the DOE will expand the Summit’s findings by chairing a series of regional natural gas conferences that will include discussions between consumer and producers.
“These regional conferences-to be held in key locations around the country-will be brainstorming sessions much like the Natural Gas Summit,” Abraham stated. “But they will also provide us with an opportunity to discuss, expand upon, and draw attention to the ideas and suggestions offered today. These are small steps, but necessary ones; every one of which will make some difference.”
