Coal gasification will increase supply and pricing problems

Although deregulation of the price of natural gas, accelerated drilling and leasing, etc. will temporarily increase gas supplies and the importation of petroleum feedstocks and liquefied natural gas will also increase the near future supplies of natural gas (or its equivalent), there are only temporary solutions and the only long-range answer is the gasification of coal. In terms of efficiency of resource use, seventy percent of the heat in coal can be contained in the product gas, while the principal alternative (conversion to electricity) is only about half as efficient; also, high sulfur coals can be used in the process without causing air pollution (the sulfur may even be recovered as a by-product). Fuel gas derived from coal will cost more than natural gas and many problems may develop in determining the proper price, especially when the product is mixed with natural gas as seems likely in order to use the present distribution system (some of these problems are described briefly). (LTN)