Natural Gas And The Competitive Fuel Market

The Natural Gas Act, of 1938, which put interstate pipelines under the jurisdiction of the Federal Power Commission, did not place a protective competitive shield around such companies - nor does any provision of the act guarantee them a profit. Natural-gas pipelines are competitive with each other and also with the coal and oil industries. Gas distributing companies must compete not only with the coal and oil industries, but also with the electric industry. Natural gas has captured markets from oil, which had taken them from coal. Oil men contend that gas prices have: been, held to an artifically low level by regulation. The electric industry is moving into the space-heating market, which pleases the coal people because the coal industry's largest customer since losing the railroads to dieselization has been the electric companies. The coal industry is attempting to monopolize the industrial and electric generating market through government intervention, and this is being done under the guise of concern for the national welfare through advocation of a "National Fuels Policy purporting to, further the cause of fuel conservation. Such a policy is contrary to American principles and would result in the individual's loss of freedom of choice and ultimately, in less reserves of preferred fuels because of diminished exploration efforts.