Greenspan Discusses Natural Gas Woes

Federal Reserve Chairman Alan Greenspan said the rise in natural gas prices has become a burden for U.S. businesses, and suggested that it could become a strain on households by winter.

"The updrift and volatility of the spot price for gas have put significant segments of the North American gas-using industry in a weakened competitive position," Greenspan said Thursday in testimony before the Senate. "Unless this competitive weakness is addressed, new investment in these technologies will flag."

Moreover, Greenspan indicated that U.S. households could face higher heating prices this winter. Natural gas prices have risen from $2 per million British thermal units in 1997 for delivery in 2000 to more than $4.50 for delivery in 2009. That is the crude oil equivalent of rising from less than $12 a barrel to $26 a barrel. ...