Reported by WEN Staff

The Independent Petroleum Association of Mountain Statets (IPAMS) made a presentation to the Colorado Public Utilities Commission on earlier this month which highlighted the important role that natural gas can play in ensuring affordable, clean and reliable energy.

Natural Gas Committee Chairman Porter Bennet of BENTEK delivered a 45 minute presentation on the drivers affecting natural gas price and their implications.  He summarized his presentation with the following conclusions:

The “peak gas” argument has been obliterated. For the foreseeable future (10 -20 years) we unequivocally have ample reserves to make natural gas the focus of our energy economy.

In the short term, Colorado utilities (gas and electric) should be able to purchase gas priced well below the national market. Another supply and demand imbalance is forming: production is growing much faster than demand. Eventually, producers will be forced to reduce exploration and drilling activities until prices increase. Because of technology, prices will correct more quickly. Prices will continue to be volatile, but the range will be narrower and the average lower.

We are faced with an historic opportunity. Increasing
consumption by power generators, natural gas vehicles, and
exporting natural gas are possible and will help to maintain
the equilibrium price at a level acceptable to both consumers
and producers. Government policy is important to maintaining
this fragile opportunity.

IPAMS is planning additional outreach meetings with Public
Utilities Commissions in the West to emphasize the long-term
strategic importance of natural gas and encourage more local
use.