Grassley made his request Monday in a letter to the President. He said that the Administration needs to take action to ensure that there is adequate natural gas supplies to meet demand through the summer and into this winter.
Over the past year, the price of natural gas has increased dramatically from $2.28 MMBtu in June 1999, to $4.50 MMBtu this June. Grassley said that the increase is due to reduced exploration and production of natural gas combined with growing demand for the product.
"During the past few years, the worldwide depression in crude oil prices led the oil industry to invest less in new oil and gas exploration and development," Grassley said. "As a result, we are now dealing with tight supplies and higher prices."
Grassley said that while the U.S. supply of natural gas is substantial, access to supplies on federal lands must be improved in order to lower prices and decrease the country's dependence on foreign oil. According to a report by the National Petroleum Council, federal land access is a key factor in providing economically accessible natural gas.
"The failure of the Administration to effectively manage this matter when prices were moderate has only exacerbated the current crisis," Grassley said. "By taking action now, we can help Iowans avoid facing a dire situation this winter should the current trend in gas prices continue."
Grassley said that energy efficiency programs are in place to help Iowans combat the increase in fuel prices. The Weatherization Assistance Program (WAP) improves the energy efficiency of low-income households, particularly those with children, the disabled and the elderly. The State Energy Program (SEP) targets all sectors of the economy with innovative solutions to energy programs. The program uses non-federal resources to help improve the energy efficiency of schools, hospitals, small business, the agriculture sector and industrial firms.