Gov’t Report: $50-Plus Oil Here to Stay

WASHINGTON – Oil prices are projected to remain well above $50 a barrel for years to come, resulting in a greater shift to more fuel efficient cars and alternative energy sources, according to an analysis released Monday by the Energy Department.
The analysis reflected a sharp change from the department’s projections a year ago when it predicted oil prices in constant dollars
The EIA’s long-term energy outlook report also:
_Scaled back the expected growth of liquefied natural gas imports into the United States. It said an increase of worldwide demand for LNG will reduce the amount coming into U.S. facilities.
_Projected a 9 percent growth in electricity production from nuclear power plants with a half-dozen new reactors likely to be built some time after 2014. Last year’s report said no new reactors were on the horizon.
_Said that coal would remain the primary fuel for producing electricity through 2030.
_Predicted that despite higher oil costs and some increases in efficiency, U.S. energy demand would increase by 1.1 percent a year between now and 2030.
_Forecast that heat-trapping carbon dioxide releases into the atmosphere from burning fossil fuels will increase an average of 1.2 percent a year and reach 7,587 million metric tons by 2025, a 28 percent increase over the amount released in 2004.

Yahoo