New Jersey's natural gas shortage: a policy analysis

Abstract

The public policy problems associated with New Jersey's natural gas shortage are extremely complex and rather difficult to examine. They involve a blend of technology, politics and economics; of regulatory mandates and profit-motivated initiatives; of Federal and state interaction and conflict. To understand the state's gas shortage and to lay the basis for recommending measures to deal with it, information about the basic technology, the organization of the gas industry, the national regulatory posture, and the possible causes of the gas shortage encompasses Part I of the overall study. In Part II, the analysis turns from the national level to a direct examination of New Jersey's gas situation. In Part III, Chapter VIII, the following are considered: the state's supply of natural gas, distribution of these supply volumes within New Jersey by the four major gas utilities, and gas consumption patterns within the state as a whole and then for each major consuming sector (electric utility, industrial, commercial, and residential). This chapter concludes with an analysis of the impacts of the gas shortage to date in New Jersey, and of its probable effects in the near-term. In the final chapter, some tentative conclusions and broad suggestions are advanced for publicmore » policies to mitigate the gravity of the state's position with respect to natural gas. Analysis proceeds, in turn, through consideration of possible state actions in several areas: increasing total interstate gas supplies; increasing New Jersey's share of whatever national total exists; making greater (or more effective) use of alternate fuels; and moderating demand for gas through aggressive conservation policies. Some short-term measures to cope better with whatever level of gas shortage exists in the state at any particular time are suggested. 151 references. (MCW)« less