EIA expects lower crude oil prices for the second half of 2023 and for 2024

We lowered our crude oil price forecast for the rest of 2023 and for 2024 in our May Short-Term Energy Outlook (STEO) because of relatively rapid declines in the crude oil price since April. Between April 12, 2023, and May 4, 2023, the Brent crude oil price fell $16 per barrel (b) to $73/b; the West Texas Intermediate crude oil price fell $15/b to $69/b. We expect that a drop in OPEC production and increases in demand will lead to relatively moderate price increases over the next few months. More »

Texas and New Mexico led U.S. crude oil production in 2022

U.S. crude oil production grew 5.6%, or 0.6 million barrels per day (b/d), in 2022 compared with 2021, averaging 11.9 million b/d according to our Monthly Crude Oil and Natural Gas Production report. The two states the Permian Basin spans—Texas and New Mexico—contributed the most growth to U.S. crude oil production in 2022. More »

U.S. propane consumption last winter was the lowest on record

We estimate that U.S. propane consumption averaged 0.986 million barrels per day (b/d) during the 2022—23 winter heating season (October through March), the least for a winter heating season on record, starting in 2010. Reduced average winter U.S. propane consumption was influenced by less consumption during the coldest winter months of December, January, and February. Based on our recently released Petroleum Supply Monthly, U.S. propane consumption during those three months averaged 1.07 million b/d, also the least since 2010. The lower consumption is primarily the result of warmer-than-normal temperatures during the winter. The consumption of propane is closely correlated with temperature in the United States during the winter and the resulting demand for heating. More »

U.S. Henry Hub natural gas price expected to increase from recent lows

In our May Short-Term Energy Outlook (STEO), we expect the U.S. benchmark Henry Hub natural gas spot price to increase throughout 2023 from its recent lows. In April, the Henry Hub price averaged $2.16 per million British thermal units (MMBtu). We expect the monthly average Henry Hub price to reach $3.71/MMBtu in December. Forecast prices throughout the rest of the year remain much lower compared with last year, averaging $2.91/MMBtu for the year, a more than 50% decline from the 2022 average price of $6.42/MMBtu, according to our May STEO. More »

Incentives and lower costs drive electric vehicle adoption in our Annual Energy Outlook

According to our Annual Energy Outlook 2023 (AEO2023), we project that electric vehicles (EVs), including both battery-electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), will account for between 13% and 29% of new light-duty vehicle sales in the United States in 2050 and between 11% and 26% of on-road light-duty vehicle stocks. Declines in EV component costs, along with federal and state policies that provide incentives for EV purchases or require minimum sales, drive EV sales growth in our model projection. More »

EIA projects coal capacity will decrease in our Annual Energy Outlook 2023

Our Annual Energy Outlook 2023 (AEO2023) projects that U.S. coal-fired generating capacity will drop below half of 2022 levels by 2050. More »