Natural Gas Supply Ample Through 2000, Utilities Say
With the specter of natural gas shortages all but forgotten, California’s two big gas utilities promised Wednesday that the state will have all the natural gas that it needs through the turn of the century.
The need for gas will grow only 11% between now and the year 2005 even though the number of residential users alone is expected to climb by 30%, Southern California Gas and Pacific Gas & Electric said in their annual forecast to the state Public Utilities Commission.
The gas utilities, the nation’s largest, credited conservation measures, the ongoing deregulation of the industry and access to new sources of gas for the optimistic note. Though similar in tone to last year’s report, the latest one is even rosier.
The recent collapse in oil and gas prices receives only brief mention in the lengthy report, which concedes that this “could lead to fewer discoveries and lower reserve additions.”
As long as natural gas prices remain competitive, “the long-term supply outlook would still be for adequate supplies over time,” the utilities said.
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