In its report reviewing the effects of a 2005 energy reform law, the American Gas Foundation said much gas that could be used to fuel electric generating plants is still locked up in western lands thanks to a complicated drilling permit process and restrictions on energy exploration.

It also said that legislation Congress passed in December to open 8.3 million acres of federal waters in the Gulf of Mexico to drilling did not go far enough to increase access to supplies.

The group warned that local opposition to building terminals that would receive imports of liquefied natural gas would slow shipments of the fuel.

"Without additional efforts beyond the measures taken over the past year, US consumers will continue to bear the burden of high and volatile natural gas prices and can expect to face billions of dollars in additional cost over the next 14 years," the group said.

Red Cavaney, president of the American Petroleum Institute, said at a separate event today that too much natural gas is inaccessible on public lands.

According to his group, which lobbies on behalf of the oil industry, government statistics show there is enough natural gas in public lands to heat 60 million homes for 60 years.

The gas foundation also faulted the delay in building a massive pipeline to bring Alaskan gas to the lower 48 states for keeping cheap natural gas from the market.

The pipeline project will not be on line by 2014 as Congress wanted, the group said.

Foundation Chairman Robert Best cited a recent Commerce Department report that found nearly 500,000 jobs had been wiped out in the US because of rising natural gas prices between 2000 and 2004, as some manufacturers moved their operations to countries with cheaper gas costs.

"The growing mismatch between supply and demand of natural gas has had a significant negative impact on the US economy and consumers in recent years," he sai

Published: 20 February 2007 22:29 GMT  | Last updated: 20 February 2007 22:29 GMT