On the recordMay 23, 2001
We have an adequate supply of pipeline space into California. It would be good to have some more. But the supply of pipeline capacity to move the natural gas from Texas and Colorado into California is just tight enough, not so that there is a shortage, but tight enough so that you can create a shortage. And as the gentleman pointed out, that is exactly what several of these companies, based in Texas, close friends just down the street at 1600 Pennsylvania Avenue, that is what these companies have done. That is why the cost of moving natural gas from Texas to California has gone up by 1,200 percent for the same pipelines. No new pipelines have been built. No new investment. Just a 1,200 percent increase in the price. And that is why it costs more to move a unit of natural gas from Texas to California than the value of the natural gas.
Source
govinfo.gov
