Gas supplies probably will remain tight, NGSA President SkipHorvath told the Consumer Federation of America’s Consumer Assembly2001 in Washington, D.C. yesterday. “Although producers aredrilling all out and production numbers are beginning to reflectour work, forecasters are predicting continued higher prices.”Horvath spoke on a panel titled “Rising Energy Prices Clobber thePoor: What Should be Done?”

“Producers are part of the solution,” Horvath said, “[and] asour experience this winter shows, we are stepping up to the plateand doing everything we can to increase supply in order to keep themarket balanced. The Energy Information Administration’s latestforecasts, however, are predicting that natural gas prices will notreturn to 1999 levels from now through next winter. This is due inpart because although early government reports show production up,a tight supply market is likely to continue.”

Horvath said producers are experiencing a “treadmill effect -we’re drilling at higher rates just to get the same amount of gasout of the ground.” Although gas rigs are up more than 45% andexploration and production investment is expected to be up 19% thisyear, “we are experiencing production challenges.”

“One solution is access to new resources,” Horvath said. “Ratherthan excluding resource-rich lands, the focus should be on usingadvanced proven technology and operating practices to increasesupplies in an environmentally responsible manner.”

Horvath told the consumers group there should be fewerenvironmental concerns these days because the industry has gonehigh-tech, “with technologies that sound like something out of anepisode of Star Trek — 3-D and 4-D seismic, cluster and modulardrilling — terms that simply mean that we could set up drill onPennsylvania Avenue and extract hydrocarbons from beneath most ofWashington, D.C. and into the suburbs.”

He requested more help in pushing Congress to open more federallands to drilling. He also suggested consumers be more aware of theenergy they use.

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