By JIM RUSSERT, Associated PressThe U.N. agency overseeing oil and gas production forecasts production will fall to a six-year low in 2017, with production of crude and gas-bearing liquids expected to be limited to an average of 1.4 million barrels per day by the end of this year.
The World Bank and the Organization of Petroleum Exporting Countries say oil production will be 5.1 million barrels a day, or less than a quarter of the global average, with output of crude oil and condensates of gas and natural gas falling by 1.9 million barrels to an annual average of 9.2 million barrels.
The oil-producing nations have been battling a severe drought, which has resulted in a steep decline in oil production and a surge in demand.
The U, U.K. and Australia, which have the world’s second-largest crude reserves, said in their most recent national budgets that they would spend almost $10 billion this year on new infrastructure projects to boost production and diversify their oil reserves.
The U.P.A. and Nigeria, which already have the second-highest reserves, are also set to spend a combined $10.7 billion this fiscal year.
Oil and gas producers also say they are facing a host of other challenges including a slowdown in Chinese growth, slowing demand for their products, the rise in supply from shale and a growing supply glut.
U.M.C.LUBBY, Idaho (AP)The United States has the world to thank for its economic recovery, as the nation’s economy is expected to expand 3.3% in 2017 from the year before, according to a report from the Organization for Economic Cooperation and Development.
The economic recovery from the recession of 2008-2009 was “very much a case of luck,” said Mark Zandi, the chief economist of Moody’s Analytics.
The economy expanded by an annualized 2.3%, to 1.3 million people.
Zandi expects the economy to expand by about 2.8% in 2018, from a year earlier.
Economists surveyed by Bloomberg expect a 2.5% rise in the economy this year, which would be the strongest in more than three years.
Economists surveyed in May predicted a 2% growth rate in the U.W. economy.
Economy is projected to grow 3.6% in 2020, and 3.7% in 2021.
The forecast is below the 3.9% average annual rate of growth in the past 10 years.