Coal, Emissions, Nuclear

EIA report predicts lower fuel prices

Issue 6 and Volume 100.

EIA report predictslower fuel prices

Fuel prices will be lower in 2015 than past forecasts have indicated. This is according to the Energy Information Administration`s (EIA) Annual Energy Outlook 1996 which forecasts information about the U.S. energy industry. This is the first EIA forecast to extend projections of energy consumption, production, prices and imports to 2015. The longer forecast horizon has caused some significant changes in projections.

Higher resource assessments, technology improvements and productivity gains are the primary reason EIA is projecting the lower prices for natural gas and coal. EIA predicts that natural gas prices (1994 dollars) at the wellhead will be $2.15 per thousand cubic feet (MCF) in 2010 and $2.57 per MCF in 2015. The report predicts average coal prices at the mine-mouth will decline through the forecast period to $17.43 a ton in 2010 and $17.39 a ton in 2015. World oil prices are also lower than predicted in the 1995 report.

EIA expects electricity prices to be lower than predicted in last year`s forecast and to remain essentially flat. This is partially due to the lower prices for generation fuels.

The recently released report looks not only at fuel prices, but at nuclear power, macroeconomic growth and demographics,