โ Scribed by Carpenter, Paul R.
No coin nor oath required. For personal study only.
orth America's natural gas market is becoming N increasingly integrated. The United States, Canada, and Mexico have all transitioned to, or are in the process of transitioning to, more efficient and competitive gas markets. Open-access transportation policies have been introduced and import/ export approval procedures have been streamlined. Increased physical interconnections and contractual relationships have arisen between the countries as import pipeline capacity has grown. Regulatory barriers for new projects appear to be diminishing, and contracts for new import capacity are for shorter duration.
One result of these changes has been a significant increase in the level of Canadian imports into the United States. In 1980, Canadian gas accounted for a 4 percent share of total U.S. gas demand. Thus, net Canadian imports of 0.8 trillion cubic feet supplied 4 percent of the United States's 19.9 trillion cubic feet of total annual demand. In 1990, this ' figure was 8 percent, and by 1996 it had grown to 13 percent. Going forward, it is likely that the conditions that contributed to this increase in import levels will persist. This conclusion is apparent from the several currently pending proposals for over
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