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Report on U.S. Dependence on Foreign Natural Gas and "Problem with Gazprom"

Energy security concerns that in the past have concentrated on oil may shift to natural gas as U.S. dependence on foreign gas increases, according to a report by the American Enterprise Institute for Public Policy Research. Gary Schmitt, director of AEI’
April 13, 2006

Energy security concerns that in the past have concentrated on oil may shift to natural gas as U.S. dependence on foreign gas increases, according to a report by the American Enterprise Institute for Public Policy Research. Gary Schmitt, director of AEI’s Program on Advanced Strategic Studies, says that the existing natural gas supply is inadequate to meet rising consumer demands for energy, adding that the energy shortfall is exacerbated by the ban on the exploration and development of potential offshore gas reserves in the United States. Schmitt also expressed concern over what he perceives as Gazprom’s attempt to become a monopoly in the natural gas industry. “For the time being, the U.S. government should make it a priority to support a tougher, smarter line by our European partners to counter Russia’s attempt to build a monopoly on gas supply and distribution,” Schmitt said. He also encouraged the development of LNG import facilities, which would enable the United States to compete for international LNG supply and “should prevent the pending crisis in natural gas supply and improve not only America’s energy security, but its security interests as well.”

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