[Congressional Record Volume 147, Number 12 (Tuesday, January 30, 2001)]
[Extensions of Remarks]
[Page E52]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            INTRODUCING THE NATURAL GAS RESERVE ACT OF 2001

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                           HON. TONY P. HALL

                                of ohio

                    in the house of representatives

                       Tuesday, January 30, 2001

  Mr. HALL of Ohio. Mr. Speaker, today, I am introducing legislation 
titled the Natural Gas Reserve Act of 2001, to create a natural gas 
reserve to help stabilize the supply and price of natural gas. This 
reserve will be modeled after the Strategic Petroleum Reserve and the 
Northeast Home Heating Oil Reserve.
  Natural gas prices have risen sharply this winter because of low 
supplies and increased demand. This in turn has caused hardship for 
many families in the Dayton area and across the country who are 
receiving significantly increased utility bills.
  A natural gas reserve is part of the long-term solution to the 
current low supplies and high prices of natural gas. A reserve would 
enable the federal government to buy when supplies are cheap and 
plentiful, and make it available during times of shortages. I believe 
if the United States had such a reserve today, natural gas prices would 
be lower.
  Supplies are at a historic low, in part because of the new gas-fired 
electric power generators which many utilities are now using, and 
because of the unexpected cold weather. The Energy Information 
Administration projects that in March 2001, U.S. natural gas in storage 
will be 40 percent below the last 5-year average.
  The national gas reserve could be drawn down when there is a supply 
shortage such as one we are now experiencing. This release of 
additional natural gas into the market will help keep prices down.
  Under this legislation, the Secretary of Energy would determine the 
size of the natural gas reserve. The Secretary would be authorized to 
sell oil from the Strategic Petroleum Reserve to cover the 
administration and acquisition costs of the reserve, and Congress could 
appropriate additional funds as well.
  The Natural Gas Reserve Act of 2001 is an insurance policy for 
American consumers because it will provide relief during national 
shortages. I would urge my colleagues to pass this important piece of 
legislation.

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