Oil and Natural Gas - Energy Policy Analysis: A Conceptual Framework - page 97

steeply after deregulation of the wellhead price and are expected to continue to rise. Natural gas
has been the preferred fuel for new electric power generating plants constructed in the United
States for many years and is expected to continue to be so. It is used increasingly in municipal
bus and other vehicle fleets nationwide as a cleaner alternative to diesel fuel or gasoline, and its
potential for greater use in transportation is great.
The national security costs of utilizing natural gas are “moderate” due to its availability as
a domestic resource or one available from neighboring Canada via pipeline. Although supply
interruptions by terrorist action are conceivable, none have yet occurred in the United States and
would require sophisticated planning and operations to implement. Moreover, it would require
considerable coordination of effort to effect a supply interruption of more than local significance,
in the absence of LNG supertanker ports.
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