End of Natural Gas Surplus Will Not End Market Restructuring / Financially-Healthy Pipelines Needed to Compete in Market, Says Dixon

By Robinson, Robin | THE JOURNAL RECORD, November 1, 1987 | Go to article overview

End of Natural Gas Surplus Will Not End Market Restructuring / Financially-Healthy Pipelines Needed to Compete in Market, Says Dixon


Robinson, Robin, THE JOURNAL RECORD


People who believe the end of the natural gas surplus also will be the end of restructuring in the natural gas market are wrong, according to a report by Richard Dixon, group vice president of Panhandle Eastern Pipe Line Co. of Houston.

There will continue to be problems with excess capacity, Dixon told an Oklahoma Senate committee. Consumption of natural gas in the United States fell 9.8 percent from 18.3 trillion cubic feet in 1982 to 16.5 trillion cubic feet in 1986, he said.

Dixon's testimony was given Friday during the fourth meeting of the senate select committee on natural gas trade practices, which has solicited comments concerning the current situation in the natural gas industry from natural gas producers, utilities and pipelines.

Oklahoma is going to need financially-healthy pipelines to transport natural gas produced within the state in order for that fuel to compete against production from other areas of the country, and with Canada, Dixon said.

"There's only so much baggage a pipeline can keep from the past and continue to operate against pipelines with no baggage," he said.

In the past three to four years, the Federal Energy Regulatory Commission has tried to reform and restructure the natural gas industry.

The long run effects are hard to see, but Dixon said the short term effects, at least while there is a natural gas surplus or "bubble," are clear:

"Natural gas transported to the city gate, or to the end user, will be at reduced prices."

Those prices are so low that they do not support exploration and drilling for continued supplies of natural gas to those customers, Dixon said.

Natural gas reserves are being depleted, while the search for new reserves has slacked off, he said.

The actions of FERC have been taken with little informed consideration of their effects on the industry's ability to supply today's consumer, Dixon said. Future consumers will see high-priced natural gas supplies, he said.

Panhandle has two types of contracts, a sole-supplier contract and a partial requirement contract, to supply natural gas to people in Michigan, Indiana, Illinois and Missouri, Dixon explained.

The sole-supplier contract, making up 70 percent of Panhandle's business, required customers to buy all the natural gas they needed from Panhandle, he said.

Under the other contract, the customer received natural gas from several pipelines, and was required to buy 75 percent of the contracted volumes, or pay a minimum bill. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

End of Natural Gas Surplus Will Not End Market Restructuring / Financially-Healthy Pipelines Needed to Compete in Market, Says Dixon
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.