ABSTRACT
This chapter explores alternative mechanisms by which the federal government of Canada could regulate trade in natural gas to achieve its policy objectives. Regulation of price only or of exportable volumes only would thus merit careful consideration. Until the 1980s, natural gas prices were held down in the United States and as such, natural gas was a bargain compared with alternative fuel supplies. Protection of the domestic market requirements would take place through the operation of the marketplace through which domestic utilities would be expected to contract for their "foreseeable" future requirements. Removal of export controls would result in a variety of export prices being produced as has been the case since November, 1984, and as was the case prior to 1974. A marketing board for natural gas exports could, in principle, be a good mechanism for securing maximum revenues for gas exports.
