World energy and economic outlook. Background paper

Conference · Tue Jan 01 04:00:00 EST 1974

OSTI ID:5860500

Spot market prices of oil have fallen considerably from the peak levels reached in 1973. Forecasts of reduced demand and projected supply availabilities for 1974 indicate a probable further weakening of price. For illustrative purposes, the analysis incorporates alternative price assumptions of $8.50 and $4.50 a barrel FOB for light Arabian crude. Over the longer term, as alternative sources of oil and other energy supplies become available, the prospects are good for a continuing softening in the world oil market. Government actions such as those included in the US Project Independence will provide a powerful complement to private market forces in bringing about this result. Yet energy will cost more than it has in the past, and particularly in the short run the higher costs of imported oil will lead to a substantial worsening of the trade balances of oil importing countries. The higher costs will generate both additional inflation and slower rates of real economic growth. The poorer developing nations will be extremely hard hit.

• Research Organization: Washington Energy Conference, DC (USA)
• OSTI ID: 5860500
• Report Number(s): CONF-740261-3
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020500 -- Petroleum-- Products & By-Products
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
COST
ECONOMIC GROWTH
ECONOMICS
ENERGY SOURCES
FORECASTING
FOSSIL FUELS
FUELS
GLOBAL ASPECTS
IMPORTS
INFLATION
MARKET
PETROLEUM
PRODUCTION