Baker Institute finds increased domestic production won't make US self-sufficient in n... (cts are also limited with U.S. prices on...)

Baker Institute finds increased domestic production won't make US self-sufficient in natural gas

Date:11/19/2007

cts are also limited, with U.S. prices only registering marginal reductions.

But longer term, the study concludes, an opening of restricted areas to drilling and the contribution of expanded OCS and Rockies natural gas production could, nonetheless, be geopolitically important in combating the rise of a cartel in the international natural gas market, a so-called GasOPEC. According to the study, "Reducing U.S. demand for LNG helps lower global natural gas prices and enhances available supplies for other major buyers in Europe and Northeast Asia. The wider swath of alternative supplies for Europe and Northeast Asia translates into significantly reduced market power of producers in Russia and the Middle East. Furthermore, the higher elasticity of supply from alternative sources as a result of allowing greater access to resources in the United States also reduces market power in the sense that a larger reduction in cartel supply would be needed to achieve any given increase in price." The study also notes that development of alternative energy could play a similar role.

One more surprising key finding of the study is that an opening of restricted areas for drilling for natural gas could have significant impacts on the flow of natural gas from Alaska to the lower 48 states. Under a business as usual scenario, where there is greater access to resources in the lower 48, the study finds that there would be delays in the development of the Alaska gas pipeline, reducing Alaskan production by as much as 0.95 tcf in 2025 (or a 40 percent reduction) relative to the case where access restrictions remain in place.

'/>"/>

Contact: David Ruth
druth@rice.edu
713-348-6327
Rice University
Source:Eurekalert

1

GOOD

Page: 1 2 3
Related biology news :

1. Palm Beach County wants to establish a Max Planck Institute in Florida
2. Midlands Consortium delighted to be chosen to host £1 billion energy institute
3. $22 million gift from Alfred Taubman launches new biomedical research institute
4. 3 Columbia University Medical Center faculty elected to Institute of Medicine
5. Stowers Institutes Xie Lab demonstrates dual intrinsic and extrinsic control of stem cell aging
6. Weizmann Institute scientists discover: A risk distribution law for evolution
7. Ludwig Institute for Cancer Research to set up its first Asian branch in Singapore
8. University of Oregon researcher finds that on waters surface, nitric acid is not so tough
9. Study finds environmental tests help predict hospital-acquired Legionnaires disease risk
10. Study finds blocking angiogenesis signaling from inside cell may lead to serious health problems
11. Study finds Viagra increases release of key reproductive hormone

Post Your Comments:

Baker Institute finds increased domestic production won't make US self-sufficient in n...(cts are also limited with U.S. prices on...)