The National Petroleum Council did not get into legislative issues in its report predicting annual U.S. natural gas demand of about 29 trillion cubic feet in 2010, but the next logical step is to determine how to convert resources into available supply, an NPC task force member said. Thomas B. Nusz, chairman of the NPC Supply Task Group and vice president of strategic planning and engineering at Burlington Resources Inc., called for a coordinated government-industry effort at devising incentives, such as possible investment tax credits, to encourage greater gas production and infrastructure development. Nusz made his comments during an Independent Petroleum Association of America presentation in Houston on the NPC report, a summary of which was released in December. The report included some recommendations, including establishment of a national gas strategy. "Development of supply and delivery systems require long lead times. Offshore fields can take up to 10 years to develop. Transmission lines may require three to five years to build," Nusz said. "In short, you just can't turn on the spigot and get more gas." The NPC has called for the formation of a proactive, interagency work group to be established under the National Economic Council to remove obstacles to developing gas supplies to meet anticipated demand. "I'm encouraged the NEC may become the forum for interagency efforts," Nusz said. The NPC report also calls for the establishment of a balanced, long-term approach for responsibly developing the nation's resource base. Other recommendations include a streamlining of processes that affect gas development and also an acceleration of research and technology development. -Paula Dittrick
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