Oil Expected to Get Even More Expensive
ABC News: Oil Expected to Get Even More Expensive
Dec. 12, 2005 ? The Energy Information Administration forecasts that 20 years from now, petroleum will be more expensive than was previously estimated, thanks to increased volatility in the world's oil markets.
Today's preliminary release of the 2006 Annual Energy Outlook shows that petroleum, forecast to cost $54 per barrel in 2025, is now expected to be $21 more expensive per barrel in 2025 than was estimated last year.
Something to keep in mind: Today's report is the preliminary look at long-term prices. The full report, which includes best- and worst-case scenarios, will be out in early 2006.
Today's data is based on the "reference case" model generated by the EIA. It's supposed to be the middle-of-the-road projection moving forward.
What's this mean for the U.S.? These higher price projections mean we'll produce more of the oil we use domestically. The data released today show that about 60 percent of U.S. energy demand will be met by imports in 2025. Just a year ago, that figure was at 70 percent.
We'll import less by investing in additional domestic oil production, aggressively adding unconventional transportation fuels like biodiesel and ethanol to our tanks and reducing demand growth over the long term.
According to the report, it's not just the nation's petroleum picture that's changing. We'll use more coal to generate electricity by 2025, and nuclear power generation will see a hefty increase for the first time in 30 years. The EIA estimates that power from nuclear sources will increase 9 percent by 2030, with 6 gigawatts in new nuclear plants coming online by 2014.
Also of note? hybrid cars are going to be a bigger part of the domestic auto market over the next 20 years. In last year's long-term outlook, sales of hybrids were projected at around 1 million cars and trucks sold in 2025. Today the EIA says they're expecting around 1.5 million hybrid autos sold every year by 2025.
Dec. 12, 2005 ? The Energy Information Administration forecasts that 20 years from now, petroleum will be more expensive than was previously estimated, thanks to increased volatility in the world's oil markets.
Today's preliminary release of the 2006 Annual Energy Outlook shows that petroleum, forecast to cost $54 per barrel in 2025, is now expected to be $21 more expensive per barrel in 2025 than was estimated last year.
Something to keep in mind: Today's report is the preliminary look at long-term prices. The full report, which includes best- and worst-case scenarios, will be out in early 2006.
Today's data is based on the "reference case" model generated by the EIA. It's supposed to be the middle-of-the-road projection moving forward.
What's this mean for the U.S.? These higher price projections mean we'll produce more of the oil we use domestically. The data released today show that about 60 percent of U.S. energy demand will be met by imports in 2025. Just a year ago, that figure was at 70 percent.
We'll import less by investing in additional domestic oil production, aggressively adding unconventional transportation fuels like biodiesel and ethanol to our tanks and reducing demand growth over the long term.
According to the report, it's not just the nation's petroleum picture that's changing. We'll use more coal to generate electricity by 2025, and nuclear power generation will see a hefty increase for the first time in 30 years. The EIA estimates that power from nuclear sources will increase 9 percent by 2030, with 6 gigawatts in new nuclear plants coming online by 2014.
Also of note? hybrid cars are going to be a bigger part of the domestic auto market over the next 20 years. In last year's long-term outlook, sales of hybrids were projected at around 1 million cars and trucks sold in 2025. Today the EIA says they're expecting around 1.5 million hybrid autos sold every year by 2025.
posted by Marcel at 3:43 PM
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