The US Oil & Gas Association (OGA) is planning to issue an interim report next month that will warn that the world’s oil industry faces the greatest oil shortage since the 1930s.
The OGA’s Oil Field Engineering Report, which is due out in early July, estimates that there will be only 15.8 million barrels per day of oil production in 2017, a shortfall that will continue to grow over the next few years.
That’s about half of the current oil demand and half the production in 2016, according to the OGA.
Oil prices have dropped nearly 70% in the last year, from around $100 a barrel to around $50.
The oil price crash of 2016 saw oil producers and refiners worldwide scramble to get their operations back online and reopen.
The report, which was released last week, notes that some producers and fields are in danger of losing money, while others are not.
The OGA estimates that the global market will be in the red in 2017.
It also says that some of the world is in a “dangerous” situation because of a combination of weak global demand, overproduction, and the lack of a strong recovery strategy.
The report warns that if the world does not get back on track by the end of 2018, oil production could fall by about 1.4 million barrels a day by the year 2020.
It warns that global oil demand will continue its steep decline over the coming decades, especially in the coming years as China and other developing countries ramp up their production.
A report released earlier this month by the International Energy Agency (IEA) estimated that demand in 2020 could be as much as 6.7 million barrels, compared to 6.1 million barrels in 2020.
Oil prices have been plummeting since late June.
Brent crude, the world benchmark, is down more than 60% this year, to $45.70 per barrel.
But while global oil production is down in the first half of this year as oil production has been ramping up, oil prices have rallied in recent months.