EIA Short-Term Energy Outlook
U.S. Energy Information Administration Administrator Adam Sieminski issued the following comments on EIA’s March 2015 Short-Term Energy Outlook, which was released on Tuesday, March 10, 2015:
U.S. commercial crude oil inventories, which are already at the highest level since 1930, are expected to continue growing over the next two months.
The increase in oil inventories is expected to moderate as refineries ramp up their processing of crude oil into petroleum products in the second quarter and domestic oil production slows.
U.S. crude oil storage capacity is now 62% full compared with 48% a year ago.”
Even with the recent increases in gasoline prices, the average U.S. household is still expected to save $710 in gasoline costs this year compared with what was paid at the pump during 2014.
Gasoline prices have recently been driven higher by increasing crude oil costs as well as several unplanned refinery outages.
Winter Fuels Outlook:
Despite frigid temperatures over the past month in the eastern half of the country, the average household that uses heating oil as its primary space heating fuel is expected to spend 24% less on heating costs this winter compared with last winter, while homes using propane for heating are expected to spend 18% less and 32% less in the Northeast and Midwest, respectively.
Natural gas prices have remained low despite cold weather during February and early March, as domestic production growth remains strong.
Recent data shows record high U.S. natural gas production in December, and EIA increased the forecast for annual production growth by about 1 billion cubic feet per day for this year and in 2016.
Early indications are that the bitter cold experienced in the eastern United States last month, which led to high levels of electricity use for space heating, may have led monthly power generation to be above the level of any previous February.
The total amount of wind, solar, and other renewables used for electricity and heat generation is expected to grow by 2.9% this year.
The effect of U.S. coal-fired power plant retirements and lower natural gas prices is reflected in a forecast for coal consumption in the electric power sector during 2015 that is 2.2% below the 2014 level.The full STEO can be downloaded at: http://www.eia.gov/forecasts/steo/
And They Say Texans Love Guns
Tweeting now: Utah lawmakers vote to become only state to allow firing squad if lethal drugs not available for executions - @AP.