U.S. oil, coal production up despite declining use

Press, 10 January 1983, Page 12

U.S. oil, coal production up despite declining use

NZPA-Reuter Washington •Production of crude oil and coal in the United States increased slightly last year in spite of a decline in energy consumption caused by the recession, according to energy industry projections. The Independent Petroleum Association of America, an industry group, said domestic crude oil production is expected to grow to 10.2 million barrels a day for 1982. an increase of about 100,000 barrels a day over the previous year.

the increase, although less than 1 per cent, follows a period of nine years in which domestic production remained stable or declined by as much as one million barrels daily. The reversal has helped reduce United States reliance on imported oil, Lloyd Unsell, • the executive vicepresident of the association said. Foreign imports have declined by two million barrels daily during the last two years to 4.9 million barrels a day, industry figures show. Mr Unsell said more than

1.2 million barrels of that reduction in imports could be attributed to higher domestic production. The National Coal Association projected that 1982 domestic production would reach 820 million tons, up from 815 million tons in 1981 when the industry suffered a strike. Over-all use of energy declined last year, according to U.S. Government figures. The decline in coal use was less than the decline in use of oil, which costs more than coal, thereby increasing coal's share of the energy

market, a coal industry spokesman, Tony Anthony, said. The potential growth for coal will depend on how quickly t users burn inventories and if other users can convert to coal from oil. Mr Anthony said. Decreased energy use resulted from the recession, a mild winter so far in the north east, and consumer conservation, he said. The decline was also reflected in a 2.7 per cent drop in peak demands for electricity last summer, reported by the Edison Electric Institute.