Question

Explain the key FERC regulations that deregulated the natural gas industry, and which stage of the supply chain they targeted.

Answer 1

FERC in 1970-1980 proposed series of reforms as it saw high costs onto consukers due to natural gas companies and pipeline merchants and distributors. Hemce, the FERC allowed deregulation of industry by allowing one monopoly player insgead of two players for rationale that seperate distribution will cause higher costs and prices. Moreover, consumers now could get gas directly from producers by elimination of entire supply chain.

Thus at the production stage itself deregulation was observed where one large consolidated player was asked to produce at low cost low prices, however which didn't happen overong run as Monopolist always takes an advantage.