EIA: Transportation and residential demand will slow, but industrial and commercial will push overall growth
The Energy Information Administration (EIA) expects energy demand growth through 2040 will come from the industrial and commercial sectors, while residential and transportation energy demand growth will remain flat, or decline slightly. According to the EIA’s Annual Energy Outlook 2015, domestic consumption is expected to grow by 0.3% per year through 2040.
Increases in energy consumption are mostly related to economic activity, and U.S. industrial and commercial enterprises are projected to increase output more rapidly than countervailing influences from improved technologies. While energy intensity, measured as the amount of energy per unit of output, is expected to decline, industrial energy consumption will still rise by 0.7% per year through 2040, according to the EIA. Commercial consumption is expected to rise 0.5% per year during the same period.
Residential consumption is expected to remain flat as most energy-consuming equipment and appliances in U.S. homes become more efficient, and the population shifts towards warmer climates. Transportation demand is expected to decline by 0.1% per year as gasoline consumption falls 21% by 2040 due to improvements in fuel efficiency.
Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. The company or companies covered in this note did not review the note prior to publication. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.
