I noted your comments in today's Gas Daily to the effect that the Kyoto agreement will be "a boon to the natural gas industry."
I'm sure you've noted the description of that boon by the Department
of Energy (DoE) in its study released in September, "Scenarios of U.S.
Carbon Reductions":
Our scenarios have somewhat reduced gas demand. . . . Specifically,
demand for natural gas in the [cases using a carbon tax of $50/ton] declines
in 2010 by 2 quads compared with the business-as-usual case. (p. 1.14)
The DoE study also suggests:
. . . government policies and programs that encourage and/or require
the adoption of energy efficiency and low-carbon technologies. (p. 1.15,
emphasis added)
I have added emphasis to the words "and/or require" because several
current legislative proposals on electric industry restructuring include
provisions that would mandate the use of renewable fuels. Such mandates,
often defended as necessary for meaningful carbon reductions, will be less
effective in reducing emissions and more costly to the economy than the
current market-driven use of natural gas.
Policies advocated by NGSA have led to a 35 percent increase in natural
gas demand over the past 10 years. This year, gas demand will top 22 trillion
cubic feet for the first time in a quarter of a century. If this makes
us "Neanderthals," then so be it.
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This page was last updated December 12, 1997.