The natural gas crisis is typically described by the increasing price of natural gas in the U.S. over the last few years due to the decline in indigenous supply and the increase in demand for electricity generation.
Problem
The price has become so high that many industrial users, mainly in the petrochemical industry, have closed their plants causing loss of jobs. Greenspan has suggested that a solution to the natural gas crisis is the importation of LNG. The U.S. natural gas crisis began 46 months ago in June, 2000 and has had a staggering direct and indirect economic impact on all consumers, the U.S. economy and especially on manufacturing. Residential, commercial and industrial consumers have paid $130 billion dollars more for natural gas during the 46-month natural gas crisis when compared to the price paid for the previous 46 month period, an 86 percent increase. Unfortunately, there is no end in sight to these high and sustained natural gas prices that are the highest in the world. (James Gustave Speth, Chap.1)
Challenge
The increased price of natural gas has cost industrial consumers $66 billion, residential consumers $39 billion and commercial consumers $25 billion. Every penny of the $130 billion could have been prevented and was totally unnecessary. The U. S. is blessed with enormous natural gas reserves yet they do not lift drilling moratoriums. Drilling for more natural gas and the recent California forest fires are a perfect analogy. In the name of protecting forests, certain groups fought efforts to thin the trees out and to take a balanced approach to managing the forests. Now, everyone knows that balance is needed, that forests should be thinned and there is a price to pay for inaction. (March 23, 2004)
Solution
As you might expect from an administration led by two former......
