Oil demand continues to grow in the U.S. and worldwide

Journal Article · Mon Jul 31 04:00:00 EDT 1995 · Oil and Gas Journal

OSTI ID:87594

Tippee, B; Beck, R J

Rising oil consumption is challenging the Organization of Petroleum Exporting Countries production quota--but not the group`s ability to meet demand. In the second half of 1995, the oil market will continue to need more oil from OPEC members than the group claims to be willing to produce with its quota at 24.52 million b/d. If the quota really limited supply, ingredients would be in place for a significant price hike. Growth in a non-OPEC production intensities temptations on OPEC members to cheat on quotas and has become a key factor in the market. OPEC producers have seen that if they don`t meet incremental demand at the current price, other producers will. OPEC eventually will have to raise its quota or acknowledge that the artificial production limit lacks meaning. At present, the only real limit to supply is production capacity, which remains in excess relative to demand and which has demonstrated its ability to grow both within and outside of OPEC when prices rise. The paper discusses worldwide trends, pressures on OPEC, world crude prices, US prices, natural gas prices, US energy demand, natural gas use, gas supply, US demand for petroleum products, imports, and inventories.

• OSTI ID: 87594
• Journal Information: Oil and Gas Journal, Journal Name: Oil and Gas Journal Journal Issue: 31 Vol. 93; ISSN OIGJAV; ISSN 0030-1388
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
29 ENERGY PLANNING, POLICY, AND ECONOMY
ASSOCIATED GAS
COMPILED DATA
FUEL CONSUMPTION
GLOBAL ASPECTS
OPEC
PETROLEUM
PETROLEUM PRODUCTS
PRICES
PRODUCTION
SUPPLY AND DEMAND
USA