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National Petroleum Council Natural Gas Study

In December 1999 the National Petroleum Council (NPC) released a study titled "Meeting the Challenges of the Nation’s Growing Natural Gas Demand." The study was conducted at the request of the Secretary of Energy in seeking advice from industry on areas of government policy and action that would enable natural gas to realize its full potential. The NPC study sheds new light on the obstacles facing industry and government if gas is to meet the expectations of a growing market.

Demand for natural gas is projected to grow to levels in excess of 30 trillion cubic feet (Tcf) by 2015. Natural gas demand is expected to continue to increase in all markets and has become the preferred fuel for new electricity generation. The study recognizes that the domestic resource base is capable of meeting a 30 Tcf market for a sustained time period. However, the ability of the producing segment to meet this challenge is conditioned on several critical factors.

First and foremost, at present many of the public lands which have significant supply potential are either severely restricted or off limits to development due to severe access restrictions or outright access prohibitions. The NPC study confirms that increased access is essential to meeting the projected demand with cost-competitive supply. The study further finds the ability to meet projected demand hinges on the development of improved technology, availability of capital and skilled workers, more drilling rigs, and reduced lead-time for project development.

IPAA is working to promote policies and programs that will allow the natural gas industry to rise to the challenge of supplying this growing market demand. IPAA chairs a Natural Gas Council task force that addresses the need for increased access to public lands and is coordinating with a broad range of interest groups to deliver this message.

Please call David Sweet at (202) 857-4722 if you have any questions about this report.

January 2000