EIA: Economic growth to contribute to energy consumption rise through 2050

U.S. energy consumption is expected to increase over the next 30 years as population and economic growth exceed the benefits related to energy efficiency improvements, according to the U.S. Energy Information Administration (EIA).

The EIA released Thursday (March 3) the Annual Energy Outlook 2022 that shows renewable energy is expected to be the fastest-growing source of energy through 2050, but petroleum and liquid fuels will remain the most-consumed source of energy.

“Our baseline case projects that, without changes in laws and regulations, improvements in energy efficiency will slow the pace of growth in U.S. energy consumption, and technological progress and greater resource development will increase energy supply,” said EIA Acting Administrator Steve Nalley. “We look at a variety of cases and compare them to the baseline case to illustrate how the availability of energy resources, the rate of technology advancement and other factors could shape future U.S. energy markets.”

Following are some of the other highlights in the Annual Energy Outlook:

• Natural gas and renewable energy are projected to continue to grow through 2050, with renewable energy growing the fastest.
• Wind and solar incentives along with declining technology costs are expected to support competition with natural gas for electricity generation, while the shares of coal and nuclear power decrease in the U.S. electricity mix.
• U.S. crude oil production is expected to rise to record highs, while natural gas exports contribute to an increase in natural gas production. Global demand is expected to partly drive oil and gas production. A continued rise in liquefied natural gas export capacity is projected to support the increase in natural gas production and exports.

Link here for the Annual Energy Outlook 2022 that will be released after a virtual event on Thursday afternoon.