Slide 11 of 15
Notes:
Major regulatory reforms at the Federal level began at the end of the 1970s with the passage of the Natural Gas Policy Act, and have affected most phases of the industry and markets
Over time the movement to a more competitive model led to lower prices starting around 1983, which was accentuated by the drop in world oil prices in 1986
Gas consumers in all sectors seem to have benefited, on average, from a more competitive marketplace
However, several factors have come together recently that have pushed spot gas prices up sharply and which are expected to reverse the downward trend in in real gas prices for the next year or so:
- U.S. gas production has been relatively flat.
- Expected demand is high under normal weather assumptions.
- Gas storage levels are below normal.
- Alternative fuel (oil) markets are tight.
