The U.S. Energy Information Administration (EIA) expects the largest growth period in nearly three decades in one sector, according to its latest short-term energy outlook.
EIA’s January outlook, the first to include 2027 forecasts, also calls for a decline in certain prices while production increases.
Additionally, the EIA forecast assumes existing sanctions on Venezuela will remain in place through 2027.
U.S. electricity use is expected to grow by 1% in 2026 and 3% in 2027. If that occurs, it would be the strongest four-year growth period since 2000.
Large computing centers, as well as the commercial and industrial sectors, are driving this increasing demand, EIA said.
“U.S. energy production remains strong, and natural gas output is expected to grow to nearly 109 billion cubic feet per day this year,” EIA Administrator Tristan Abbey said. “Natural gas supply is critical as we forecast that U.S. liquefied natural gas exports expand and electricity demand rises through 2027, driven largely by increasing demand from large computing facilities, including data centers.”
The full EIA outlook is available online.
Global oil production is forecast to outpace demand, increasing inventories and driving the Brent crude oil price down to $56 per barrel in 2026. Lower prices will result in reduced drilling activity and less U.S. crude oil production in 2026 and 2027.
Fuel prices are expected to steadily decline through 2026, with the national average falling to $3.41 per gallon by the fourth quarter of this year. Fuel prices are forecast to increase in three of four quarters in 2027, ending the year at $3.57 per gallon.
U.S. average retail prices for January 12, 2025:
⛽️ Regular grade #gasoline: $2.78/gallon
⛽️ On-highway #diesel: $3.46/gallon #gaspricesHistorical data is available on our website: 🔽…
— EIA (@EIAgov) January 13, 2026
Natural gas prices are expected to drop by 2% in 2026, then increase in 2027 due to rising demand. Natural gas generation will remain flat, while generation from coal-fired power plants will decline in 2026 and 2027.
Solar power is forecast to provide the largest increase in power generation. LL
Read more Land Line business news.
Credit: Source link
