Politics shaping U. S. oil, gas outlook in 1991

Journal Article · Mon Jan 28 04:00:00 EST 1991 · Oil and Gas Journal; (USA)

OSTI ID:5819364

Beck, R J

This paper reports that politics, more than economics, will shape U.S. and international oil markets this year. Prices will remain unsettled until the Middle East crisis ends, making projections tenuous. But economic forces will remain at work. A halt in economic growth coupled with higher prices will reduce U.S. oil demand in 1991. Demand also fell last year. Warm weather in the first few months of 1990 cut fuel oil consumption. And sharply higher crude and product prices following Iraq's invasion of Kuwait reduced petroleum demand overall during the last 5 months of the year. This year, U.S. oil production will continue a slide that started in 1986. But at 180,000 b/d, the decline will be smaller than those of recent years, thanks mainly to a production increase in Alaska. Elevated oil prices will boost rig activity and well completions. The average number of active rigs will exceed levels of the past few years but remain below rates needed to stop the U.S. production slide. Also stimulating drilling will be growing demand for natural gas.

• OSTI ID: 5819364
• Journal Information: Oil and Gas Journal; (USA), Journal Name: Oil and Gas Journal; (USA) Vol. 89:4; ISSN OIGJA; ISSN 0030-1388
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
03 NATURAL GAS
030600 -- Natural Gas-- Economic
Industrial
& Business Aspects
ECONOMIC POLICY
FORECASTING
GLOBAL ASPECTS
GOVERNMENT POLICIES
INDUSTRY
INSTITUTIONAL FACTORS
NATURAL GAS INDUSTRY
PETROLEUM INDUSTRY
POLITICAL ASPECTS