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- W140153051 abstract "The Project Independence studies required estimates of natural gas which were formally structured and could be compared with other sources of energy supply and prices to permit energy balance evaluations in the context of a world of rapidly changing energy costs. The Federal Power Commission forecasts and those of the Natural Gas Supply Committee did not derive from formal models and the TERA and MacAvoy-Pindyck system did not contain the necessary regional detail available in the National Petroleum Council Model. Therefore, the Federal Energy Administration began an effort to modify the National Petroleum Council model to permit integration into the overall Project Independence studies. This adaptation replaced the costing methodology with a new procedure to represent supply response, updated and revised the data base, and adjusted key parameters to be consistent with the best available, Federal Energy Administration (FEA) estimates of key policy variables. This revised FEA model prepares estimates of natural gas production which recognize the difference in costs and, therefore, prices of producing from reserves of different size and quality. This price sensitivity is essential in evaluating the impacts of fuel competition or in assessing the potential supply results from gas price deregulation. Although this basic policy problemmore » is complicated by many uncertainties, and improvements can be developed, it is clearly incorrect to draw the conclusion that the FEA model indicates that there is no additional natural gas to be found at higher prices. Higher prices induce higher drilling and, therefore, more production.« less" @default.
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- W140153051 date "1975-11-06" @default.
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- W140153051 title "Natural gas supply and the impact of prices" @default.
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