Expected prices will shrink U. S. supply, boost demand

Journal Article · Mon Apr 20 04:00:00 EDT 1987 · Oil Gas J.; (United States)

OSTI ID:6590215

Di Bona, C J

Powerful economic forces operating today are causing an unprecedented decline in U.S. crude supply. This disturbing fact remains inescapable, even though prices have recovered some from the low point they reached during the summer of 1986. The low prices that caused domestic oil production to plunge more than 800,000 b/d between February and December last year are also stimulating an increase in consumption, and causing a rapid growth of oil imports, mainly from OPEC sources. If current price levels persist, continued growth in demand for OPEC oil by the U.S. and other industrial nations can be expected until the current OPEC surplus capacity is largely worked off. This may occur within three to five years. At that point, consuming countries could again be faced with rapidly increasing world oil prices, caused by supply interruptions or other problems reminiscent of the tight markets of the 1970s. A healthy level of domestic petroleum production is one major hedge against the hazards of overdependence on insecure and increasingly costly foreign oil. But current government policies are doing little to prevent the further deterioration of the already weakened U.S. petroleum industry.

• Research Organization: American Petroleum Institute, Washington, DC
• OSTI ID: 6590215
• Journal Information: Oil Gas J.; (United States), Journal Name: Oil Gas J.; (United States) Vol. 85:16; ISSN OIGJA
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
292000 -- Energy Planning & Policy-- Supply
Demand & Forecasting
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294002 -- Energy Planning & Policy-- Petroleum
DEMAND
ECONOMIC IMPACT
ECONOMIC POLICY
ENERGY CONSUMPTION
ENERGY DEMAND
ENERGY POLICY
ENERGY SUPPLIES
FORECASTING
GOVERNMENT POLICIES
IMPORTS
INDUSTRY
INTERNATIONAL ORGANIZATIONS
OIL-EXPORTING COUNTRIES
OPEC
PETROLEUM INDUSTRY
PRICES
PRODUCTION