"With natural gas inventories at record lows and prices for natural gas sky high, we need to find ways to increase supply, decrease demand and find alternative energy sources to replace natural gas," Grassley said. "This is having an extreme affect on Iowa's manufacturing industry which is dependent on natural gas right now and could lead to a dire situation for low-income Iowans who depend on natural gas for heating fuel."
Grassley said he would continue to fight for maximum funding for the Low Income Heating Assistance Program, but people need to start thinking about the distinct possibility of high prices next winter. The report that Grassley requested, along with Sen. Lamar Alexander, of Tennessee, is due to Congress in six months. The recommendations in this report will help Congress address future supply and demand for natural gas.
"If high natural gas prices continue, farmers won't be left out of the crunch, either," Grassley said. "Many agriculture fertilizer products that farmers rely on are heavily dependent on natural gas."
According to the Energy Information Administration, natural gas inventories are almost 30 percent below their five-year average. Right now, prices are nearly double what they were last year. Also, a white paper release by the Iowa Utilities Board on natural gas prices outlined the possibility of high to very high natural gas prices as a distinct possibility for next winter.