By Jamie Martin
The Energy Information Administration has released its January energy forecast, outlining major changes expected in U.S. energy markets through 2027. The report highlights steady growth in electricity use and a continued shift toward cleaner energy sources.
Electricity demand is expected to rise each year, reaching its strongest four-year growth period since 2000. This growth is mainly driven by the rapid expansion of large computing facilities such as data centers, which require high and constant power supply.
"U.S. energy production remains strong, and natural gas output is expected to grow to nearly 109 billion cubic feet per day this year," said Tristan Abbey, Administrator of the U.S. Energy Information Administration. "Natural gas supply is critical as we forecast that U.S. liquefied natural gas exports expand and electricity demand rises through 2027, driven largely by increasing demand from large computing facilities, including data centers."
Natural gas will continue to play a central role in meeting this demand. Production is expected to remain high, and liquefied natural gas exports are forecast to increase steadily through 2027. As exports grow and power plants use more natural gas, prices are projected to rise by the end of the forecast period.
Oil markets are expected to face lower prices in 2026 due to global oversupply. This is likely to reduce drilling activity and cause a slight decline in U.S. oil production by 2027. Gasoline prices are also projected to decrease in 2026 before leveling out.
Solar energy is forecast to deliver the largest growth in power generation. Large additions of new solar capacity are expected to increase solar generation by more than 20 percent in both 2026 and 2027. Wind and nuclear generation are expected to remain steady, while coal power is projected to continue declining.
The share of cleaner energy sources in the electricity mix is expected to grow. Carbon emissions are projected to stay stable, reflecting the increasing use of renewable energy and natural gas.
The outlook shows that the U.S. energy system is adapting to new technology needs and cleaner power goals while maintaining reliable supply for households, farms, and businesses.
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Categories: National