Natural Gas's Once-Bright Future Begins to Flicker

The ColumbianMay 02, 2006

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Summary


BOSTON -- On the brink of the 21st century, a group of energy experts peered into the future of natural gas, and what they saw was quite rosy -- and quite wrong.

To satisfy growing demand, producers could crank out a third more natural gas over the next decade at "competitive prices." It could "power our economy" for decades beyond. Or so said the National Petroleum Council in its 1999 report.

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Natural Gas's Once-Bright Future Begins to Flicker

But natural gas prices soon headed skyward, with prices charged by producers spiking late last year at nearly five times 1999 levels. This past winter, though starting off warm, saw the average gas-heating household spend a record $867, a 17 percent increase, according to federal data. As for that predicted robust supply, the country's annual gas output has strangely slipped by 3 percent over the past six years.

Something is broken in the economics of natural gas, say people inside and ...

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