Author:

Publisher:

Published: 1976

Total Pages:

ISBN-13:

The Northeast is heavily dependent on oil (63 percent) to meet its energy demand. The second largest fraction (18 percent) is provided by natural gas. In 1972, the Region consumed 2.3 trillion cubic feet of gas, out of which 0.5 percent was imported from Algeria as LNG and Canada. About 3 percent was produced within the Region and about 96 percent came from the rest of the nation, mainly the Gulf Coast area. In terms of end use, the residential sector consumed the largest portion (46 percent); only 5 percent was used in generating electricity (in contrast to the national average of 20 percent). The Northeast has suffered curtailments of its firm-contract supplies in recent years. Nationwide gas production reached its peak of 22.6 trillion cubic feet in 1973 and has been declining ever since, a situation further aggravated by the two-tiered price structure. Based on estimates of total U.S. gas reserves (discovered and undiscovered) and applying a modified Hubbert method to a number of assumptions, projections of natural gas production were made for 1985 and 2000. From these, the amount of gas supply available to the Northeast was projected based on further assumptions, e.g., if there is gas deposit on the Atlantic Outer Continental Shelf, whether it will be developed in time, how much of the Alaskan gas is available to this part of the nation, etc. The conclusion is that under most scenarios the supply of natural gas to the Northeast will be severely constrained.