|
Press Releases | |
|---|---|
U.S. ENERGY INFORMATION ADMINISTRATION EIA Says Natural Gas Capacity More Than Adequate Through 1998
The Energy Information Administration expects a continuing increase in natural gas productive capacity in the United States through 1998 to be more than adequate to meet normal production demand. Increased drilling resulting in new discoveries, especially in the Gulf of Mexico Outer Continental Shelf, will be a major factor. According to the sixth in a series of EIA reports on natural gas wellhead capacity in the lower 48 States, the decline in gas productive capacity that began in 1986 was clearly reversed in 1996 and capacity is expected to continue increasing through 1998. Exceptionally high "peak-day" or "peak-week" heating or cooling demand may temporarily exceed projected productive capacity, or production may be limited by other factors such as pipeline availability, but various methods, such as deliveries from storage and peak-day shaving, are available to meet peak demand. Surplus capacity above average production is needed to respond to seasonal variations in demand caused by weather and other factors, although expanded imports and storage of gas in recent years have increased the flexibility of the supply system. However, the more flexible supply system has not prevented price spikes like that in late 1996, when gas demand was high and there was an industry perception of actual or potential tightness in gas supply. The increased drilling in 1996 and projected increases in 1997 and 1998 allow for increased production and an increasing surplus capacity. The full report, Natural Gas Productive Capacity for the Lower 48 States 1986 Through 1998, is available electronically on EIA's Internet Web Site: http://www.eia.doe.gov. The direct Internet address is: http://www.eia.doe.gov/oil_gas/natgas/cp97.html . Because of budgetary restrictions, this year's report will not be available in printed form.
EIA Program Contact: James N. Hicks, 214/720-6156 EIA-98-02 Contact:
|