IOGCC Calls Governor Summit on Price, Supply
Governors from across the United States are expected to convene in Columbus,
OH, Sept. 20 at a summit to discuss the high natural gas prices and supply
challenges facing consumers this winter. The meeting will also address
long-term state and federal gas policy, such as human resource needs in
the domestic petroleum industry, tax incentives and access to public lands
for gas drilling.
Ohio Gov. Bob Taft and Alaska Gov. Tony Knowles, chairman of the Oklahoma-based
Interstate Oil and Gas Compact Commission (IOGCC), will co-host the "Governors'
Natural Gas Summit: Responding to the Looming Energy Crisis" in the
hopes that discussions will have an impact on U.S. energy policy involving
natural gas. The announcement of the summit comes just a week after the
IOGCC began its push for an official national energy policy, offering their
own four-prong approach (see NGI, Aug. 14).
Knowles noted, "The wholesale price of natural gas has doubled
since April, and tripled since last summer, and all signs point to an extremely
tight natural gas market this winter." Knowles said the tight supply
"poses a major challenge for U.S. consumers and our national economy,
which can be addressed by boosting domestic supply. The Governors' Natural
Gas Summit will draw attention to the current supply, demand and price
for natural gas, and initiate a discussion to help guide a rational public
policy response to the current high prices and looming supply shortfall."
The summit will help governors grasp the fundamentals of the gas marketplace
in North America, and design individual state action plans. Mid-September
was chosen for the gathering because it signifies the start of the home
heating season, when attention to energy-related issues is normally at
"The increased demand for natural gas could translate to higher
heating bills, creating a financial burden for our low and fixed-income
residents," Taft said.
A group of panels will present the supply and demand projections for
North America in the short and long-term. Panelists will include major
gas producers, traders, distributors, storage operators, electric utilities
and local gas utilities. State and federal representatives will also give
presentations. Canadian and Mexican issues will also be discussed.
Cambridge Energy Research Associates' Chairman Dr. Daniel Yergin will
be the keynote speaker of the summit. Dr. Yergin wrote the Pullitzer Prize-winning
book, The Prize, about the oil industry.
Ohio was chosen for the site of the summit to draw key energy-consuming
states, the group said. "Natural gas is especially important to Ohio
because we rank second nationally in the number of stripper natural gas
wells," Taft added. "These wells, producing only a small amount
of natural gas each day, are an important element of the supply chain and
should not be overlooked."
The IOGCC represents the governors of 30 states with a focus on conservation
and the environmentally friendly recovery of oil and natural gas resources.
Visit its web site at www.iogcc.state.ok.us
for more information.