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Don't Expect Government Price Controls on Natural Gas Anytime Soon

September 8, 2009

Natural Gas Dips to Lowest Since March 2002 on Inventory Gain | www.bloomberg.com

Natural gas prices are inherently volatile, due to wide variations in supply and demand plus limited storage, compounded by speculative trading mechanisms. Unpredictable natural gas cost swings impact not just short term profitability, but long term capital investment and competitiveness. Government price controls, however, are not likely, as they could convert a short term volatility issue into a long term capacity issue, thus reducing the time available to find better alternatives.

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