Higher gas prices unlikely under several scenarios, BPC study finds

May 21, 2013
US natural gas prices are unlikely to rise markedly under a variety of scenarios, including those with increased demand across multiple sectors, a study by the Bipartisan Policy Center’s Energy Project staff concluded.

US natural gas prices are unlikely to rise markedly under a variety of scenarios, including those with increased demand across multiple sectors, a study by the Bipartisan Policy Center’s Energy Project staff concluded.

BPC said the report analyzed the combined effect of increased gas demand from multiple sources, including industry, electric power generation, and LNG and pipeline exports.

It said the analysis addresses two key policy questions: what price impacts would be when multiple demand drivers act in concert, and how impacts would vary under high and low gas supply assumptions.

The analysis found that even when demand for gas is high and supplies are low, prices in the scenario analysis would never reach levels seen in the past when prices peaked, BPC said.

It said increased gas consumption in the future will be primarily driven by overall economic growth and increased demand in the electric power and industrial sectors. Natural gas vehicles stand to make significant gains in market share and vehicle miles traveled by 2035, it said.

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