EIA: US Oil Demand Seen Flat To 2035 Without New Policies

[Purveyor]

By Ian Talley, Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- U.S. petroleum demand is expected to remain flat through to 2035 if the government doesn't enact any new policies that mandate lower greenhouse gas levels or higher efficiencies, the head of the Energy Information Administration said Monday.

The forecast comes as world leaders attempt to negotiate a global agreement to cut greenhouse gas emissions in Copenhagen and highlights the energy use implications if Congress or the administration doesn't act to cut gases such as carbon dioxide. Oil use is one of the largest human contributors to such emissions.

In a long term energy outlook, the EIA said biofuel production will provide the growth of total liquid fuel demand, but consumption of petroleum-based liquids is essentially flat to 2035.

Under a renewable fuels mandate, ethanol production is forecast to grow from around 10 billion gallons now to around 28 billion gallons in 2035. That's below the 36 billion gallons a year mandate for all biofuels by 2022, largely because of the expected slow growth of next-generation advanced biofuel technologies.

Total energy use is seen growing 14% from 2008 levels by 2035, including after a 5% decline from the recession.

And though fossil fuels are seen providing 78% of the nation's energy needs-- down from 84% now--efficiency gains will help cut greenhouse gas emissions per capita at around 40% by 2035.

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http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=200912141054dowjonesdjonline000196&title=eia-us-oil-demand-seen-flat-to-2035-without-new-policies

[Goldstein1984]

1. The EIA doesn't have a great track record of predictions

[Andy823]

2. The problem is

That demand and price have nothing to do with each other these days. Even though demand is low, and supplies are high, the speculators are keeping prices up. Oil prices are down in the sixties this morning the last time I looked, down from around $80 a barrel a few weeks ago, yet gas prices, and diesel prices have not changed in my area for over a month! Gas is at $2.92 a gallon for regular, and diesel is about $3.14 a gallon. As long as speculators can get away with buying oil, storing it, and then manipulating prices, we will be paying more for gas than we should be. When prices were up to $140 a barrel, they tried to say it was all price and demand that was causing the high prices with oil, and at the pump with gas. It was all a lie!

[Kansas Wyatt]

4. The Big Banks are doing well....

Guess who is the biggest oil speculator. And they have done it with taxpayer help and U.S. Government stamp of approval.

[Javaman]

3. Then I assume they believe that there won't be any sort of economic recovery...

oil runs everything. Our demand is down because the economy is flat.

as the economy "improves", demand will go up.

like Goldstein1984 said up thread, The EIA doesn't have a great track record of predictions"