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Natural Gas Feedstocks

What's New


Early Saturday, December 9, the House of Representatives passed, by a vote of 367-45, H.R. 6111, the “Tax Relief and Health Care Act of 2006,” which included the full text of S. 3711, the “Gulf of Mexico Energy Security Act of 2006.” Following that, the Senate passed the same legislation by a vote of 79-9. The legislation takes an important first step toward eliminating artificial and unnecessary limitations on the development of vital domestic energy resources. It opens 8.3 million acres of the Outer Continental Shelf (OCS) to oil and natural gas drilling and could conservatively yield 5.8 trillion cubic feet of natural gas.

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NPRA Position

NPRA believes that diverse, robust, and affordable supplies of energy are essential for maintaining national security, economic growth, and the viability of the U.S. refining and petrochemical industries. NPRA advocates a market-oriented, supply-driven approach to national energy policy.

NPRA supports an open, comprehensive review of the nation's domestic natural-gas related policies, encompassing both the supply and demand perspectives. This is needed in order to maintain the U.S. petrochemical, refining, and other manufacturing industries which are vital components of a healthy, growing U.S. economy. In recent years, domestic demand for natural gas has substantially increased but U.S. production has been unable to keep pace. This is largely due to contradictory, short-sighted policies that have limited the supply of natural gas and other forms of energy while promoting additional natural gas consumption. These conflicting policies are incompatible with continued U.S. economic growth.

Background

Natural gas is used by the U.S. petrochemical industry as both a fuel and a feedstock in the manufacture and delivery of essential consumer products and related services. The industry manufactures chemicals that serve as "building blocks" in making everything from plastics to clothing to medicine to computers and other products. They also contribute essential materials for making food and beverage containers, surgical gloves and gowns, fertilizer, blankets, cold weather and rain gear, sneakers, computers, insulation, cameras, medicines, artificial joints, auto and aircraft parts, disposable diapers, CDs, and many more key consumer products.