Increasing the U.S. gas tax 20% to increase natural gas supplies will boost economic development and will promote environmental protection, while ensuring more stable prices for natural gas customers. Most importantly, increasing natural gas supplies will give Americans what they want reasonable prices, greater price stability, and fuel for our vibrant economy. However, without policy changes to natural gas supply, as well as expansion of production, pipeline, and local delivery infrastructure for natural gas, the natural gas industry will have difficulty meeting the anticipated 50 percent increase in market demand. Price increases, price volatility, and a brake on the economy will be inevitable.
I. If gas prices don't increase by at least 20%, our natural gas supply won't be efficient enough to meet the American population's needs.
A.) Americans will be using twice as much natural gas in the future.
According to the Energy Information Administration, by 2005 we may need 20% more natural gas than we use today; by 2015, 50% more. But U.S. production has flat-lined for fifteen years, and Canada is treading water, too. Natural gas is the environmentally friendly fuel of choice and during the summer, gas is pumped into underground caverns for use the next winter. This schedule is now being crimped by Sunbelt air conditioners, whose demand for gas-fired electricity is soaring. Gas is used to keep us warm; now we ask it to keep us cool, too. So where is the new gas going to come from?
B.) It will cost to have more Natural Gas fields available for exploration and development.
David N. Parker, president & Chief Executive Officer of the American Gas Association in Washington, D.C. U.S. House of Representatives Resources Committee states: Many of the fields from which natural gas is currently produced are mature. Over the last two decades, technological advances have greatly enhanced...
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