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EMD-81-73 1 (1981-06-04)

handle is hein.gao/gaobabbzi0001 and id is 1 raw text is:                                                                      (13 . 75




BY THE COMPTROLLER GENERAL



Report To The Congress

OF THE UNITED STATES


Changes In Natural Gas Prices And

Supplies Since Passage Of The

Natural Gas Policy Act Of 1978



The Natural Gas Policy Act of 1978 was in-
tended to stimulate production and explo
ration for reserves by permitting producers                           115398
higher prices for natural gas. This congression-
ally requested study assesses the extent of
changes in natural gas prices, availability of
supplies, and reserves since passage of the act.


Natural gas distributors included in a nation-
wide sample raised consumer prices an average
of 33 percent from 1978 to the first quarter
of 1980, while the Consumer Price Index in-
creased only 21 percent. Most of the increase
above the Consumer Price Index resulted from
rising producer prices. Such increases are ex-
pected to continue.

It is too early for the act to have had much
effect on natural gas reserves. But major pro-
ducers surveyed increased exploration and
drilling as the prices of both natural gas and
oil increased. Production increased 1.6 percent
in 1979 and available supplies appear adequate.
Proven reserves continued to decrease in. 1979,
but at a slightly slower pace.


    ' t S7,4


  EMD-81-73
JUNE 4, 1981


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