There also is an extensive gas pipeline delivery system in place and a technology base that makes gas convenient, efficient, and economic in a wide variety of applications. With aggressive policy initiatives, about one million barrels per day of imported oil consumption could be replaced with natural gas. Most importantly, enhanced production of natural gas at competitive prices will be essential for both environmental and oil displacement uses. Technology advances are the key to reaching this objective. Similarly, maximum efficiency in all existing and new uses of natural gas will be an important factor in achieving environmental and national security goals at minimum cost to energy consumers.
Advanced technology is an essential factor in efficiency improvements.
If public policy initiatives are taken to provide the market opportunities, added research efforts could facilitate oil substitution within a reasonably short time frame. The principal objectives of such policies would be to create market entry opportunities for alternative transportation fuels, to ensure that new power plants do not choose oil where other options are available, to enhance the economic incentives for the development of domestic gas resources, to expedite approval of new pipeline construction, and to increase support for the development of new gas end-use storage and supply technologies. Unless strong policy initiatives are taken, market forces alone are unlikely to either encourage the maximum efficiencies achievable in the use of oil or to support the replacement of oil with alternative fuels in the established petroleum markets. Energy consumers will continue to make fuel choices based upon the immediate visible costs to themselves, and they will frequently choose oil. In the public policy arena, we will continue to confront the social consequences of their cumulative choices as we have been doing for the past 20 years.