Natural gas crisis driven by federal & state interventions

Lynne Kiesling spells out how regulation on both the demand and supply side have conspired to simultaneously lower supply while boosting demand, creating the current 'crisis' situation in natural gas (absent the dastardly Enronites, who will be scapegoated with causing California's next electricity price spike?):

Reductions in domestic supply due to decreased land that is legally available to drill, in conjunction with the expectation of future import decreases from places like Canada if they follow through with Kyoto, have increased supply concerns for the near and far future. And demand increases as more electricity is generated from natural gas to comply with environmental regulations. Thus decreased supply and expectations of decreased future supply meets increased demand and expectations of increased future demand => higher average prices, and increases in price volatility. No mystery, no conspiracy.

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