AGA URGES U.S. TO REPLACE IMPORTED OIL WITH GAS

American Gas Association has urged the U.S. Department of Energy to take aggressive steps to reduce U.S. dependence on foreign oil imports and encourage natural gas use.

AGA Pres. Mike Baly said, "A recent report from the American Petroleum Institute showed U.S. oil imports at a 17 year high in July, accounting for 58% of the petroleum products we used.

"Petroleum import levels of this magnitude have major implications for U.S. energy independence and for environmental quality. An obvious solution is to increase the use of domestic natural gas and other domestic fuels, particularly in areas like the Northeast that are especially oil dependent."

STEPS TO TAKE

First, Baly said DOE should work with other agencies such as the Environmental Protection Agency to ensure that implementation of the stationary and mobile source provisions of the 1990 Clean Air Act Amendments does not perpetuate dependence on oil imports.

"Second, the department can develop guidance for states on integrated resource planning that would encourage development of programs to displace oil products in both stationary and mobile applications."

Baly said the 49% oil import level in 1993 compares with natural gas imports that were 11% of total U.S. supply.

NATURAL GAS IMPORTS

"Natural gas imports accounted for 2.3 tcf of the total U.S. consumption of 20.2 tcf last year. Canada remained the most significant source of U.S. natural gas supplies outside the Lower 48 states, providing 2.194 tcf in 1993 or about 10% of U.S. supply.

"An additional 1 bcf came from Mexico in 1993, although the U.S. was a net exporter of gas to Mexico at 36 bcf last year. These natural gas imports from our North American neighbors have become a stable source for a relatively small portion of our U.S. gas supply mix."

AGA released an analysis showing the U.S. currently can import gas from Canada and Mexico at more than 15 border points due to significant growth in pipeline infrastructure in recent years.

It estimated total pipeline import capacity is 3.1 tcf/year, up about 15% from 1992.

AGA said up to 14% of gas consumed in the U.S. in 2010 will be from gas imports, and several expansions are planned to provide more pipeline capacity.