The Review also tracks the response of markets. Oil demand growth was weak in 2000 as high prices encouraged conservation and substitution into alternative fuels: coal consumption increased for the first time since 1996. This demand growth weakness appears to have carried into 2001. With oil production from both OPEC and Non-OPEC growing strongly, global oil production capacity appears to be growing faster than demand.
LOS ANGELES, June 28, 2001 — Currently planned remedies to California’s electric power shortage crisis could result in 112 hours of power outages this summer, a 1.5% decline in the gross state product, and a more-than one-half percent increase in unemployment.