So, despite the reduced fuel usage per customer that has come about as a result of efficiency improvements, new market applications have led to increased use of natural gas. Changing market forces have led to more pressure for cuts in research spending and focus on short-term deliverables. In the current competitive environment, there is no reason to expect that the gas industry will respond to further cuts in GRI by dramatic increases in corporate expenditures on research. The RCC has been particularly worried that diminished research funding will have negative impacts on longer-term research efforts which are essential to gas consumers and to the nation, particularly in the areas of natural gas supply, environment and safety. In response to the question posed by the Commission in Part II of the Public Conference, I recommend that the GRI budget should be increased.
Technological advancements require input from many disciplines and many researchers.
These interactions will not proceed in a productive and orderly manner without some assurance of multi-year funding. GRI's research efforts during the last two years have been adversely affected by the disruptions caused by the current instability in GRI funding. Predictable, multi-year funding is essential to achieve results from basic and applied research, and to conduct necessary research in the areas of environment and safety. Meeting the needs of gas consumers requires continued technological advancements that go well beyond the scope of one-year projects. I urge the Commission to take action to provide for funding stability for GRI to continue basic and applied natural gas research in the national interest.