Energy Dept. Assistant Secretary Discusses Potential Impact of Natural Gas Shortages, Promotes Smart Energy Use at Phoenix Forum

8/19/2003

From: Chris Kielich of the U.S. Department of Energy, 202-586-5806

PHOENIX, Aug. 19 -- Assistant Secretary of Energy for Fossil Energy Mike Smith traveled to Phoenix, Ariz., today to talk about potential natural gas shortages facing the nation that may have a significant impact on the lives of seniors, small business owners and other individuals in the coming months.

Assistant Secretary Smith participated in the Department of Energy's Regional Natural Gas Forum at the JW Marriott Desert Ridge Hotel. The forum brought together representatives from consumer groups, industry and government for an open discussion on short-term solutions to the natural gas problem.

"This is not about low reserves or supply and demand imbalances," Assistant Secretary Smith said. "This is about real people and the real problems they confront when gas prices soar. It's about senior citizens, living on fixed incomes, being forced to choose between skyrocketing heating bills or some other of life's necessities. It's about small business owners trying to keep the lights on."

Assistant Secretary Smith stated that current stocks of natural gas in underground storage are unusually low due to a combination of cold weather in parts of the country and declines in both domestic production and net imports. At the same time, he said, demand is projected to grow 50 percent over the next 25 years.

"While we work to increase our production and storage capacity for natural gas, we must also focus on using our natural gas resources wisely," Assistant Secretary Smith said. "Individuals, business and government can play an important role in reducing energy use."

The Industrialized Housing Partnership (IHP), one of DOE's Building America Consortiums, has provided technical assistance in FY 2002 valued at $340,000 to Beazer Homes, Trend Homes, Hacienda Builders, Continental Homes, and Pulte Homes in Phoenix, where 2,199 houses have been completed. IHP projects emphasize applied research and development with HUD code home manufacturers, Habitat for Humanity and American Lung Association Affiliates.

The Phoenix meeting was one of several regional forums to be held across the country as part of Secretary of Energy Spencer Abrahams Smart Energy campaign, announced on July 9. Campaign activities include the Energysavers.gov website that educates consumers on specific steps they can take to conserve energy, a letter from the Secretary to all 50 governors with recommended actions that states can take to improve the natural gas situation, and public service announcements available on the Energysavers.gov website for use by radio stations throughout the country.