$36;50 A Barrel Oil Forecast For Next 25 Years

Energy Secretary Samuel Bodman said, “Today’s forecast from EIA emphasizes something we already know - demand for energy around the world will continue to grow as economies expand and prosperity spreads." As a result of both supply and demand changes, the Energy Outlook says, growth in U.S. petroleum imports is expected to be less than projected last year. U.S. petroleum imports, which met 58 percent of oil demand in 2004, are projected to meet 60 percent of demand in 2025, down from the EIA's 68 percent projection last year. Higher oil prices lower the growth of demand for the commodity, the EIA projects, particularly through the effect of high prices on fuel choice and vehicle efficiency decisions in the transportation sector, even though the report does not assume adoption of proposed new fuel economy standards that are now in the public comment process. Much of the increase in new light duty vehicle fuel economy reflects greater penetration by hybrid and diesel vehicles, and slower growth in the sales of light trucks and sport utility vehicles, the EIA report projects. http://www.ens-newswire.com/ens/dec2005/2005-12-12-03.asp

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