Dec. 12, 2005: EIA Expects High Energy Prices Through 2006
WASHINGTON - Energy prices will remain high through 2006, with crude oil prices averaging $63 per barrel, retail regular gasoline averaging $2.41 per gallon, and natural gas averaging $9.30 per thousand cubic feet, according to the latest projections from the U.S. Department of Energy's (DOE's) Energy Information Administration (EIA).
In its new Short Term Energy Outlook, the EIA expects elevated energy prices due to continuing tight international supplies and hurricane-induced supply losses, combined with a projected 2 percent increase in U.S. energy demand. There is some good news, though: October and November were warmer than anticipated, so the EIA has slightly reduced its projections for this winter's heating costs.