New York, NY – America’s natural gas utilities are at the forefront of an energy revolution, delivering exceptional value to their customers, shareholders and our nation. Ron Jibson, Chairman of the American Gas Association spoke today to the New York Society of Security Analysts where he outlined how America’s domestic abundance of this clean energy source will transform the way we use energy and help address many of our national priorities including boosting our economy.
“Domestic natural gas supplies are expected to be sufficiently robust to meet even significant growth in demand across all sectors at reasonable and relatively stable prices for the next decade and beyond,” said Jibson. “America’s natural gas utilities operate the largest and most efficient energy delivery system in the world, capable of continuing to deliver this fuel safely and reliably throughout the United States. With the tremendous advances being made in direct and distributed use in homes, businesses, industry and vehicles, everyone can have access to the promises of natural gas.”
AGA believes it is possible for the United States to produce more than 80 Bcf of natural gas per day by 2022 if demand requirements develop to require such production growth. Affordable prices and a future of market stability provide an opportunity to make long-term investments throughout the natural gas value chain. These investments create jobs and improve the safety and reliability of our infrastructure for years to come.
Mr. Jibson, who is chairman, president and CEO of Questar Corporation (NYSE: STR) in Salt Lake City, made the financial case for investing in local natural gas utilities, highlighting the financial strength and growth opportunities in the energy utility sector as demonstrated in the performance of the Hennessy Gas Utility Index Fund (MUTF: GASFX) against the S&P 500 and Dow Jones Utilities Average over the past 10 years.
Mr. Jibson also mentioned the American Taxpayer Relief Act that enacted low tax rates for dividends permanent which will help utilities expand and rebuild critical infrastructure, in turn, helping to meet the nation’s energy needs. Most AGA members have paid dividends continuously for more than 50 years.