Fuel Costs Concerns to Go On and On and On

In its Annual Energy Outlook 2006, the Energy Information Administration --which provides the government’s official energy statistics – expects per barrel costs of $40.49 in 2004 dollars to climb to $54.08 in 2025 and $56.97 per barrel in 2030. Reliance on imported oil is expected to rise to 60% of demand in 2025, up from 2004’s 58%.

Noted in the Outlook is that world oil prices “have risen sharply as supply has tightened, first as a result of strong demand growth in developing economies such as China and later as a result of supply constraints resulting from disruptions and inadequate investment to meet demand growth.”