Certified Energy Manager Practice Exam

What can be concluded about the Natural Gas Policy Act?

1. It increased regulatory oversight of natural gas

2. It prevented competition in the gas market

3. It was intended to enhance market flexibility

4. It restricted natural gas production

The correct answer is: It was intended to enhance market flexibility

The Natural Gas Policy Act was designed to promote competition and enhance market flexibility within the natural gas sector. By encouraging a more market-driven approach, the Act sought to dismantle some of the rigid pricing structures that had previously limited growth and competition in the natural gas market. This included measures that allowed for more accessible pricing mechanisms and the introduction of an open market environment where market forces could dictate prices rather than regulatory controls. This focus on enhancing market flexibility was crucial for allowing new entrants into the market and stimulating supply, which in turn could lead to better prices and availability for consumers. By promoting this flexibility, the Act aimed to create a more efficient and responsive energy market, aligning with broader goals of energy independence and sustainability. The other options reflect aspects that were not necessarily true of the Act: rather than increasing regulation or restricting production, the legislation was more about reducing barriers to entry and encouraging competition.