ELECTRICITY

US energy demand set to soar

Despite slowly slipping into recession, the US Energy Information Administration this week forecast that domestic energy demand will increase by one-third over the next two decades on the back of a growing American economy.

Growth in commercial buildings and personal travel, together with slower increases in fuel efficiency for cars and trucks, is expected to account for the large increase by 2020.

Domestic crude oil production is projected to decline slightly by 2020 to 5.6 million barrels per day. According to the EIA, foreign imports are expected to account for 62 per cent of US oil supplies by 2020, up from 53% in 2000.

Natural gas demand is expected to increase by 50%, largely due to its popularity as a fuel for electricity generation. Carbon dioxide emissions from US fuel consumption will reach 2.088 billion tonnes by 2020, 54% higher than the 1.352 billion tonnes recorded in 1990.

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