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EIA Expects Continued High Energy Prices Through 2023

Dan Energy

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eia

The U.S. Energy Information Administration (EIA) forecasts that a variety of U.S. energy prices will remain historically high through 2023. The outlook includes oil, natural gas, coal, and electricity, as seen in EIA’s June 2022 Short-Term Energy Outlook.

EIA Administrator Joe DeCarolis says, “Although we expect the current upward pressure on energy prices to lessen, high energy prices will likely remain prevalent in the United States this year and next.”

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EIA forecasts that high natural gas and coal prices will result in an increased share of renewables in U.S. generation, largely offset by a decline in coal’s share. The natural gas share is forecast to decline over the next two years, although at a slower rate than coal.

EIA says the Brent crude oil price will average $108 per barrel during the second half of 2022, as tight global inventories and significant geopolitical uncertainties continue to put upward pressure on crude oil prices despite an increase in production to pre-pandemic levels.

(From the National Association of Farm Broadcasters)