Renewables:
U.S. wind power generation capacity is forecast to increase 8.8 percent this year and grow another 15 percent in 2015. Utility-scale solar power generation capacity is expected to rise 40 percent between the end of 2013 and the end of 2015.
Natural Gas:
Following a cold December and several large weekly withdrawals of stored natural gas, EIA revised downward its estimate of the amount of U.S. natural gas held in storage at the end of the winter heating season by more than 200 billion cubic feet. EIA now expects inventories will total about 1.5 trillion cubic feet at the end of this March.
U.S. onshore natural gas production is expected to continue increasing over the next two years, with strong output growth in the Marcellus Shale offsetting production declines in the Gulf of Mexico. Overall U.S. natural gas production is expected to grow 2.1 percent this year and 1.3 percent in 2015.
Crude Oil Supply:
EIA expects annual U.S. crude oil production to come close to setting a new record high in 2015. Projected domestic crude oil production is set to increase by 1 million barrels per day this year to 8.5 million barrels per day, and then rise to 9.3 million barrels per day in 2015. U.S. oil production in 2015 could be the highest since 1972. The growth in domestic production has contributed to a significant decline in petroleum imports. The share of total U.S. liquid fuels consumption met by net imports is expected to decline to 24 percent in 2015, which would be the lowest level since 1970.
Gasoline Prices:
Gasoline prices are expected to trend downward over the next two years, averaging $3.46 per gallon in 2014 and $3.39 per gallon in 2015, driven down by continued growth in U.S. crude oil production and lower crude oil prices.
Coal:
After two years of declining production, U.S coal output is expected to increase in 2014. U.S. coal production this year is forecast to rise almost 4 percent, or 36 million short tons, as higher natural gas prices make coal more competitive for power generation. The share of U.S. electricity generated by coal is expected to increase from 39.1% last year to 40.2 percent this year. However, coal’s share of generation falls to 38.6 percent in 2015 as more U.S. coal-fired power plants are retired.”
Electricity:
Improvements in appliance and lighting energy efficiency have helped slow the growth in residential electricity use in recent years. Average household consumption is expected to decline 1.1 percent this year and another 0.4 percent in 2015. While residential electricity consumption may decline because of more energy-efficient appliances and lighting, the improving economy will cause a boost in electricity use by the U.S. industrial sector, which is forecast to consume 2.2 percent more electricity this year and 2.5 percent more in 2015.
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