Lower gasoline prices, declines in natural gas production, and a double-digit increases in renewable energy capacity will mark the end of 2016 and early 2017, according to the short-term energy forecast released Tuesday by the federal Energy Information Administration.
On gasoline prices, the EIA said it expects falling prices for wholesale crude oil, combined with seasonal lows over the winter, will result in a national average price at the pump of less than $2 in January.
The ongoing low price of crude oil is continuing despite drops in U.S. production during the last few years.
U.S. crude oil production averaged 9.4 million barrels per day (b/d) in 2015, and it is forecast to drop about 6 percent in 2016, to an average of 8.8 million barrels per day. Next year’s production, in 2017, is also expected to decline slightly, to 8.7 million barrels per day, the EIA said.
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