What is the Natural Gas Act of 1938, and why is it important?
Natural gas are fuels formed from fossil remains of organic and/or biological matter that are buried and pressurized for several thousands of years beneath the Earth's crust. The consumption of natural gas has been extensively increasing as the technological advancement in concerned. Therefore, there is a need for it to be regulated in order to have an orderly distribution for fair consumption.
Natural Gas Act of 1938 is implemented to regulate the use, production, consumption and purchase of natural gas. In the first years of natural gas commerce, there is no defined rule for sales and consumption of these resources. In the late 1800 and early 1900, the government of the United States believed that there is a monopoly in the natural gas market that makes the prices to go higher. The state needed to protect the consumers by controlling the increase in prices in the gas market. Upon the imposition of the act, the consumers have different options since other sources of natural gas have been discovered.
The act is important because there is a need to protect consumers from monopolistic tendencies that companies can do. It also allows formation of other sources that can be available to consumers. Finally, this act increases the available jobs for people while strengthening the natural gas industry.