Changes in Natural Gas Prices and Supplies Since Passage of the Natural Gas Policy Act of 1978

Through the Natural Gas Policy Act, Congress intended to stimulate production and exploration for reserves by permitting producers higher prices for gas from areas where production was previously not economical and for gas produced from new wells. The Act eliminated the price disparity between the natural gas sold in interstate and intrastate commerce by subjecting both to Federal regulations. It also provided for monthly price increases and for gradual deregulation of natural gas prices. GAO evaluated the impact of the Act on natural gas prices, new natural gas reserves, and production. GAO limited the review to obtaining data on industry attitudes, prices charged, and supplies and industry activities.