Short-Term Energy Outlook (STEO) pdf

U.S.EnergyInformationAdministration|Short‐TermEnergyOutlookJanuary2013 1
January2013


Short-Term Energy Outlook (STEO)

 ThiseditionoftheShort‐TermEnergyOutlookisthefirsttoincludeforecastsfor2014.

 EIAexpectsthattheBrentcrudeoilspotprice,whichaveraged$112perbarrelin2012,will
falltoanaverageof$105perbarrelin2013and$99perbarrelin
2014.Theprojected
discountofWestTexasIntermediate(WTI)crudeoiltoBrent,whichaveraged$18perbarrel
in2012,fallstoanaverageof$16perbarrelin2013and$8perbarrelin2014,asplanned
newpipelinecapacitylowersthecostofmovingMid‐continentcrudeoilto
theGulfCoast
refiningcenters.

 EIAexpectsthatfallingcrudepriceswillhelpnationalaverageregulargasolineretailprices
fallfromanaverage$3.63pergallonin2012toannualaveragesof$3.44pergallonand
$3.34pergallonin2013and2014,respectively.Dieselfuelretailpricesaveraged
$3.97per
gallonduring2012andareforecastedtofalltoanaverageof$3.87pergallonin2013and
$3.78pergallonin2014.
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 EIAestimatesU.S.totalcrudeoilproductionaveraged6.4millionbarrelsperday(bbl/d)in
2012,anincreaseof0.8millionbbl/dfromthe
previousyear.Projecteddomesticcrudeoil
productioncontinuestoincreaseto7.3millionbbl/din2013and7.9millionbbl/din2014,
whichwouldmarkthehighestannualaveragelevelofproductionsince1988.

 TotalU.S.liquidfuelsconsumptionfellfromanaverage20.8millionbbl/d in2005to

18.6
millionbbl/din2012.EIAexpectstotalconsump tiontoriseslowlyoverthenexttwoyearsto
anaverage18.8millionbbl/din2014,drivenbyincreasesindistillateandliquefied
petroleumgasconsumption,withflatgasolineandjetfuelconsumption.

 Naturalgasworkinginventories,whichreacheda
record‐highlevelinearlyNovember,ended
2012atanestimated3.5trillioncubicfeet(Tcf),slightlyabovethelevelatthesametimethe
previousyear.EIAexpectstheHenryHubnaturalgasspotprice,whichaveraged$4.00per
millionBritishthermalunits(MMBtu)in2011and$2.75per
millionMMBtuin2012,will
average$3.74perMMBtuin2013and$3.90perMMBtuin2014.

 EIAexpectsthecoalshareoftotalelectricitygenerationtorisefrom37.6percentin2012to
39.0percentin2013and39.6percentin2014,asnaturalgaspricesriserelative
tocoal
prices.Lower‐than‐projectednaturalgaspricesalongwiththeindustry’sresponsetofuture
environmentalregulationscouldcausethecoalshareoftotalgenerationtofallbelowthis 
forecast.
U.S.EnergyInformationAdministration|Short‐TermEnergyOutlookJanuary2013 2
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GlobalCrudeOilandLiquidFuels
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GlobalCrudeOilandLiquidFuelsOverview.EIAexpectsoilmarketstoloosenin2013and2014
asincreasingglobalsupplymorethanoffsetshigherglobalconsumption.Projectedworld
supplyincreasesby1.0millionbbl/din2013and1.7millionbbl/din2014,withmostofthe
growthcomingfrom
outsidetheOrganizationofthePetroleumExportingCountries(OPEC).
NorthAmericawillaccountformuchofthisgrowth.Projectedworldliquidfuelsconsumption
growsbyanannualaverageof0.9millionbarrelsperday(bbl/d)in2013and1.3millionbbl/din 

2014.CountriesoutsidetheOrganizationforEconomicCooperationand
Development(OECD)
driveexpectedconsumptiongrowth.

GlobalCrudeOilandLiquidFuelsConsumption.Worldliquidfuelsconsumptiongrewbyan
estimated0.9millionbbl/din2012toreach89.2milli onbbl/d .EIAexpectsthatthisgrowthwill
remainaboutthesameoverthenextyearbeforepickingupagainin
2014duetoamoderate
recoveryinglobaleconomicgrowth;consumptionreaches90.1millionbbl/din2013and91.5
millionbbl/din2014.Non‐OECDAsiaistheleadingregionalcontributortoexpectedglobal
consumptiongrowth.

OECDliquidfuelsconsumptiondeclinedby0.4millionbbl/din2012.EIAprojectsOECD
consumption
tofurtherdeclineby0.3millionbbl/din2013,asmodestconsumptiongrowthin
NorthAmericaismorethanoffsetbydecreasingconsumptioninEurope.TheOECD
consumptiondeclinenarrowsto0.1millionbbl/din2014asEuropeanconsumptionbeginsto
flatteninresponsetohighereconomicgrowth.EIAprojections
donotassumeanysignificant
deteriorationoftheeconomicsituationintheUnitedStatesortheEuropeanUnion(EU)next
year.

Non‐OPECSupply.AlthoughsupplygrowthintheUnitedStatesandRussiaduring2012
outpacedourforecastatthebeginningoftheyear,overallnon‐OPECliquidfuelsproductionfell

belowtheyear‐agoexpectations.EIAforecastsnon‐OPECproductiontoincreaseby1.4million
bbl/din2013and1.3millionbbl/din2014,butassumptionsaboutthemitigationofsomeofthe
currentpoliticalimpedimentstoproductionandtherapidevolutionoftheNorthAmericanoil
industryintroduceconside rable 
riskstotheforecast.NorthAmericaaccountsforabouttwo‐

thirdsoftheprojectedgrowthinnon‐OPECsupplyoverthenexttwoyearsbecauseofcontinued
productiongrowthfromU.S.tightoilformationsandCanadianoilsands.

Unplannedproductionoutagesinnon‐OPECcountriesdeclinedto0.8millionbbl/din
December
2012,thelowestlevelsinceJanuary2012,butstillabovethehistoricalbaselinethatprevailed
duringthefourthquarterof2011.SyriaandtheSudansarecurrentlythemostsignificant
sourcesofdisruptiontonon‐OPECproduction.EIAdoesnotassumearesolutioninSyriawill
occurduringthe
forecastperiod.SudanandSouthSudanmuststillovercomepoliticaland
technicalobstaclesbeforesignificantflowsfromthelattercanberestarted.EIAprojectsthat
U.S.EnergyInformationAdministration|Short‐TermEnergyOutlookJanuary2013 3
SudanandSouthSudancombinedwillpr oduce 0.2millionbbl/din2013and0.4millionbbl/din
2014.

OPECSupply.EIAexpectsthatOPECmemberswillcontinuetoproduceatleast30millionbbl/d
ofcrudeoiloverthenexttwoyearstoaccommodatetheprojectedincreaseinworldoil
consumption
andtocounterbalancesupplydisruptions.However,OPECcrudesupplydecreases
by0.6millionbbl/din2013andstaysflatthrough2014.Mostofthedecreasein2013comes
fromSaudiArabia,whichrespondstonon‐OPECgrowthandincreasingproductionfromsome
OPECmembers,suchasIraq,Nigeria,andAngola.

Libyanoilproductionincreasedconsiderablyoverthelastyeartoalevelapproachingpre‐cri sis
capacity.YetvarioussmalldisruptionstoLibyanproduction,refining,andexportsoverthelast
fewmonthsreinforceEIA’spreviousassessmentsofthecontinuingriskstotheLibyanoil
industry.Weexpectoutputtofluctuatearound
currentlevelsuntilapermanentgovernmentis
successfullyinstalled.


Iraqhasincreasedproductionby0.4millionbbl/dsincelastyear,inpartduetonewexport
infrastructureinthesouthernpartofthecountry.However,heightenedtensionsbetwe e nthe
centralgovernment,KurdishRegionalGovernment,andsomeSunniandShiafactionscould

underminethecontinuedgrowthofitsoilproductionoverthenearterm.
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Despitenewoutputfromdeepwaterfields,Nigeria’sproductiondeclinedslightlyin2012from
thepreviousyearasincreasedoiltheftandfloodingcutcrudeoilproductioninthefourth
quarterto2.0millionbbl/d.Barringanymajorunforeseen
supplydisruptions,EIAprojects
Nigerianproductiontoincreasein2013and2014asoutputfromdeepwaterfieldsrampsupand
newfieldsarebroughtonline.FormoreonupcomingoilprojectsinNigeria,seeEIA’scountry
analysisbrief.

TechnicalandmaintenanceproblemshaveplaguedsomeofAngola’sdeepwaterfieldsforyears,
particularlytheGreaterPlutonioProject,andwillcontinuetolimitAngola’scrudeoilproduction
overtheforecastperiod.Thecountry’soilministerrecentlyexpressedskepticismoverAngola’s
abilitytoreachitstargetof2millionbbl/din
2013.EIA’sprojectionreflectsthatsame
skepticism,sinceseveraltechnicalfieldproblemsremainunresolved.Nonetheless,EIAstill
anticipatesAngolancrudeoiloutputtograduallyincreaseoverthenexttwoyears asnew
deepwaterproductionmorethanoffsets chronicmaintenance‐relateddeclines.

EIAestimatesthatliquidfuelsproductionandconsumptionin
Iranaveraged3.2millionbbl/d
and1.7millionbbl/d,respectively,duringNovemberandDecember2012.Iraniancrudeoil
productionhadbeenfallingsinceatleastthelastquarterof2011,duetothecountry’sinability 
tocarryoutinvestmentprojectsthatarenecessarytooffsetthenaturaldeclineinproduction
from
existingwells,whilethelatestroundofU.S.andEUsanctionscontributedtosteeper

declinesinIranianexportsandproduction duringthesecondandthirdquartersof2012.
However,thistentativeinterpretationofaveryfluidsituationcouldchangeasEIArevisesdata,
U.S.EnergyInformationAdministration|Short‐TermEnergyOutlookJanuary2013 4
industrysourcesissueindependentestimatesofIranianproduction,andmoredetailsabout
Iranianstoragelevels,refineryutilization,anddomesticconsumptionemerge.

EIAestimatesthatOPECsurpluscapacity,whichisoverwhelminglyconcentratedinSaudi Arabia,
remainedrelativelytightbyhistoricalstandardsataround2.3milli onbbl/dinDecember2012.
ProjectedOPECsurplus
capacityincreasesto3.1millionbbl/din2013.Thisestimatedoesnot
includeadditionalcapacitythatmaybeavailableinIranbutwhichiscurrentlyofflineduetothe
impactsofU.S.andEUsanctionsonIran’sabilitytosellitsoil.

OECDPetroleumInventories.EIAestimatesthatOECDcommercial
oilinventoriesended2012
at2.67billionbarrels,equivalentto58daysofsupply.ProjectedOECDoilinventoriesremain
relativelyflatthroughoutthenextyearandend2013at2.66billionbarrels(58daysofsupply).
Inventoriesgrowto2.69billionbarrels(59daysofsupply)bytheendof2014.


CrudeOilPrices.EIAprojectstheBrentcrudeoilspotpricewillfallfromanaverageof$112per
barrelin2012toannualaveragesof$105perbarreland$99perbarrelin2013and2014,
respectively,reflectingtheincreasingsupplyofliquidfuelsbynon‐OPECcountries.After
averaging$94in2012,theWTIpricewillaverage$90perbarrelin2013beforeincreasingtoan
averageof$91perbarrelin2014.By2014,severalpipelineprojectsfromtheMid‐continentto
theGulfCoastrefiningcentersareexpectedtocomeonline,reducingthecostoftransporting

crudeoiltorefiners,whichisreflectedinadecliningdiscountofWTItoBrentovertheforecast
period.


Energypriceforecastsarehighlyuncertain(MarketPricesandUncertaintyReport
).WTIfutures
forApril2013deliveryduringthefive‐dayperiodendingJanuary3,2013,averaged$92.84per
barrel.Impliedvolatilityaveraged26percent,establishingthelowerandupperlimitsofthe95‐
percentconfidenceintervalforthemarket'sexpectationsofmonthlyaverageWTIpricesinApril
2013at$74
perbarreland$117perbarrel,respectively.Lastyearatthistime,WTIforApril
2012deliveryaveraged$102perbarrelandimpliedvolatilityavera ged35percent.The
correspondinglowerandupperlimitsofthe95‐percentconfidenceintervalwere$75perbarrel
and$138perbarrel.

U.S.CrudeOilandLiquidFuels

U.S.LiquidFuelsConsumption.Havingfallen230,000bbl/d(1.2percent)in2011,totalliquid
fuelsconsumptiondeclinedbyanadditional300,000bbl/d(1.6percent)in2012.Allofthe
majorpetroleumcategoriescontributedtotheslideinconsumptionin2012despitethe
continuedeconomicrecoveryandlittlechangeinyear‐over
‐yearinflation‐adjustedretailfuel
prices.Projectedtotalliquidfuelsconsumptionincreasesby70,000bbl/d(0.4percent)in2013
andby60,000bbl/din2014.Mostoftheconsumptiongrowthcomesfromdistillatefueloiland
liquefiedpetroleumgas,whichrisebecauseofcontinuedgrowthinindustrialuseaswell
asthe
assumptionofnear‐normalweatherthiswintercomparedwithmuchwarmer‐than‐normal
weatherlastwinter.
U.S.EnergyInformationAdministration|Short‐TermEnergyOutlookJanuary2013 5

Forecastmotorgasolineconsumptionin2013and2014remainsalmostunchangedfrom2012
becausecontinuedslowgrowthinthedriving‐agepopulationandhighwaytravelisoffsetby
improvementsintheaveragefueleconomyofnewvehiclesandretirementofolder,less‐fuel‐
efficientvehicles.


Distillatefuelconsumptionaveraged3.8
millionbbl/din2012,130,000bbl/d(3.2percent)lower
thanin2011.Growthinon‐highwaydieselconsumptionin2012wasoffsetbylowerheatingoil
consumptionforspaceheating(a5.8‐percentdropinheatingdegreedaysintheNortheastin
2012)andadeclineinrailfreighttraffic(2.2
‐percentdeclineinestimatedton‐milesoverthefirst
51weeksof2012,asreportedbytheAmericanAssociationofRailroads
)ledbylowercoaland
grainshipments.EIAexpectsdistillateconsumptiontoincreaseby20,000bbl/din2013and
30,000bbl/din2014astruckingcontinuestogrow,wintertemperaturesreturntonearnormal,
andcoalandgrainproductionbegintorecoverinthesecondhalfof2013and
increasein2014.

Consumptionofliquefiedpetroleumgas(andnaturalgasliquids)increasedduring2012despite
thelastwinter’swarmweatherbecausegrowingsupplyofnaturalgasliquidsoverthelast
severalyearscontributedtolowerpricesandincreaseddemand,particularlybythe
petrochemicalindustry.Plannedexpansionsatseveralethyleneplants
in2013leadtoincreases
inexpectedliquefiedpetroleum gasconsumptionof40,000bbl/din2013and30,000bbl/din
2014.

U.S.LiquidFuelsSupplyandImports.EIAexpectscrudeoilproductiontocontinuetogrow
rapidlyoverthenexttwoyears,increasingfromanaverage6.4millionbbl/din
2012toaverage
7.3millionbbl/din2013,anincreaseofabout0.3millionbbl/dfromlastmonth’sSTEO,and7.9
millionbbl/din2014.Centraltothisprojectedgrowthwillbeongoingdevelopmentactivityin
keyonshorebasins.DrillingintightoilplaysintheWilliston,WesternGulf,andPermian
Basins
isexpectedtoaccountforthebulkofforecastproductiongrowthoverthenexttwoyears.


TheWillistonBasin’sBakkenformationinNorthDakotaandMontana,andtheWesternGulf
Basin’sEagleFordformationinTexascurrentlycontributeabouttwo‐thirdsofU.S.tightoil
production.Willistonbasinproduction
risesfromanestimatedDecember2012levelof0.84
millionbbl/dto1.19millionbbl/dinDecember2014.WesternGulfBasinproductionrisesfrom
anestimatedDecember2012levelof1.07millionbbl/dto1.75millionbbl/dinDecember2014.
WithintheWesternGulfBasinroughly0.4millionbbl/dofthe
oilproductionisoutsideofthe
EagleFordformation.TheWesternGulfBasinaccountsformorethanhalfoftheonshore
domesticliquidproductiongrowthoverthenexttwoyears.

ThePermianBasininWestTexas,whichincludesplayssuchasSpraberry,Bonespring,and
Wolfcamp,isanotherkeygrowtharea.
(Thetermplayreferstoanoilornaturalgasformation
withactiveprospectinganddevelopment.)EIAestimatesthatcrudeoilproductionfromthe
PermianBasinreached1.23millionbbl/dinDecember2012.PermianBasinproductionis
projectedtoincreaseto1.4millionbbl/dinDecember2014.Althoughaverageinitialliquids

U.S.EnergyInformationAdministration|Short‐TermEnergyOutlookJanuary2013 6
productionvolumesfromPermianwellshaverisen,incontrasttootherbasins,theproduction
forecastforthisbasinhasbeenscaledbackduetolowerrigefficiencyacrossallwellsbeing
drilledintheregion.

Alaskacrudeoilproductionreachedaseasonallowthisyearof400,000bbl/dinAugust2012

whensummermaintenancetypicallydecreasesvolumes,butrecoveredto560,000bbl/din
November.EIAexpectsAlaskancrudeoilproductionwilldeclinefromanaverageof530,000
bbl/din2012to510,000bbl/din2013and480,000bbl/din2014.


U.S.FederalGulfofMexico(GOM)averagedailyoilproductionwas
1.17millionbbl/din
September2012becauseofoutagesearlyinthemonthrelatedtoHurricaneIsaac.Oil
productionrecoveredfromthestormbytheendofSeptemberandisestimatedtohave
increasedto1.34millionbbl/dinNovember2012.Averagedailyproductionfor2012is
expectedtobe1.26
millionbbl/d,approximately60,000bbl/dlowerthanduring2011.

EIAexpectsGOMproductiontoincreasetoanaverage1.37millionbbl/din2013.Muchofthat
increaseisduetothenewprojectsthatstartedproducingin2012,butdonotreachpeak
productionuntillate2012orearly2013,
andsixnewfieldstart‐upswithacombinedpeak
productionofabout45,000bbl/d,plustheNaKikaPhase3redevelopmentprojectlocated144
milessoutheastofNewOrleans.

ProjectedGOMproductioncontinuestoincreasein2014,averaging1.44millionbbl/d,as
severalrelativelyhigh‐volumedeepwaterprojectsareexpected
onstream,includingtheJack‐St.
Malojointfielddevelopment,BigFoot,Tubular Bells,andLucius.Alsoexpectedonstream
during2014istheAtlantisPhase2redevelopmentproject.Thetimingofandvolumetric
contributionfromtheseprojectsisbasedoncurrentlyreportedtimetables.

Sincepeakingin2005at12.5millionbbl/d,
U.S.liquidfuelnetimports,includingcrudeoil,have
beenfalling.Netimportsdeclinedto7.5millionbbl/ din2012,andEIAexpectsimportsto
continuedecliningtoanaverageof6.0millionbbl/dby2014.Similarly,theshareoftotalU.S.
consumptionmetbyliquidfuelnetimportspeakedat
over60percentin2005andfelltoan
averageof40percentin2012,andEIAexpectsthenetimportsharetoaverage32percentin
2014becauseofcontinuedsubstantialincreasesindomesticcrudeoilproduction.


U.S.PetroleumProductPrices.Despitesimilarcrudeoilpricesduring2011and
2012,U.S.
monthlyaverageregulargasolineretailpricesincreasedfromanaverageof$3.53pergallonin
2011toaverage$3.63pergallonin2012,drivenpartlybyisolatedrefineryoutagesandlower
inventorylevelsontheEastandWestcoasts.U.S.regulargasolineretailpricesfellfroman
averageof
$3.85pergalloninSeptember2012toanaverageof$3.31pergalloninDecember,
whichwasthelowestaveragesinceDecember2011.EIAexpectsregular‐gradegasolineretail
priceswillaverage$3.44pergallonand$3.34pergallonin2013and2014,respectively.

U.S.EnergyInformationAdministration|Short‐TermEnergyOutlookJanuary2013 7
On‐highwaydieselfuelretailpricesaveraged$4.12pergalloninSeptember2012,and
continuedtightmarketconditionsandstrongdemandforexportskepton‐highwaydieselfuel
pricesatanaverageof$3.96pergalloninDecember.OnNovember23,2012,U.S.week‐ending
stocksofdistillatefueloilfell
totheirlowestlevelsinceMay30,2008,despitethehigher
expecteddemandduringthecurrentwinterheatingseason.Distillateinventorieshavesince
recovered,especiallyintheNortheast,thoughstillremainingwellbelowtheirfive‐yearaverage.
Afteraveraging$3.97pergallonin2012,EIAexpectsthaton‐highwaydiesel
fuelretailpriceswill
average$3.87pergallonin2013and$3.78pergallonin2014.Wholesaledieselmargins(the
differencebetweenthewholesalepriceofdieselandtheU.S.averagerefineracquisitioncostof
crudeoil)averaged$0.60pergalloninthefirsthalfof2012,andthenclimbedto
anaverageof
$0.92pergalloninNovember,thehigh est monthlyaveragesinceOctober2005.EIAprojects
wholesaledieselmarginswillaverage$0.75pergallonin2013and$0.63pergallonin2014,
comparedwiththepreviousfive‐year(2007‐11)averageof$0.54pergallon.

NaturalGas


U.S.NaturalGasConsumption.EIAexpectsthatnaturalgasconsumptionwillaverage69.7
billioncubicfeetperday (Bcf/d)in2013and69.4Bcf/din2014.Whiletotalconsumptionis
relativelyunchangedfrom2012,themakeupofconsumptionchanges.Becauseofawarm
winterlastyear,2012residentialandcommercial
consumptionwasverylow,andthehot
summer(aswellasrelativelylownaturalgasprices)ledtorecord‐highuseofnaturalgasfor
powergeneration.Foreca stsforcloser‐to‐normaltemperaturesin2013and2014willleadto
increasesinnaturalgasusedforresidentialandcommercialspaceheating.
Theseincreasesare
offsetbydeclinesinnaturalgasforpowergeneration,assummertemperaturesareexpectedto
beclosertonormal,meaningcoolerthantheywer ein2012.

Despiteprojecteddeclinesinelectricpowerconsumptionfrom2012levels,consumptionof
naturalgasforelectricpowergenerationremainshighby
historicalstandardsandreflectsa
structuralshifttowardusingmorenaturalgasforpowergeneration.Whiletheshifttoward
morenaturalgasforpowergenerationhasbeenmostevidentintheSoutheast
,othermajor
consumingareashavealsoincreasednaturalgasconsumption.IncreasedpipelineflowsinNew
Englandduringthesummermonths,forexample,representanincreasingrelianceonnatural
gasforpowergeneration.

U.S.NaturalGasProductionandImports.Thismon th’sSTEOexpectscontinuedgrowthin
naturalgasproduction,drivenlargelybyonshoreproductioninshaleareas.Inparticular,
productionintheMarcellusShaleareasofPennsylvania
andWestVirginiaisexpectedto
continuerising,asrecentlydrilledwellsbecomeoperational.Despiterelativelylownaturalgas
prices,Pennsylvaniadrilling
continuesatastrongpaceasproducerstargetcombinationoil‐and‐

gaswells.Productionhasbeenrisingdespitelargedecreasesinthenaturalgasrigcountover
thepastyear.AccordingtoBakerHughes,thenaturalgasrigcountwas431asofDecember28,
2012,comparedwith811at
thestartof2012.Theoilrigcounthasalsodecli nedinrecent
months(oilrigsoftenproduceassociatednaturalgas),althoughdeclineshavebeenmuch
U.S.EnergyInformationAdministration|Short‐TermEnergyOutlookJanuary2013 8
smallerthandeclinesinthenaturalgasrigcount.Thedeclinesinrigcounts,coupledwith
continuedproductiongrowth,suggestincreasesinrigefficiency,whichwillmaintainproduction
levelsgoingforward.

Thismonth’sSTEOexpectsthattotalmarketedproductionwillincreasefrom69.2Bcf/din2012
to69.8Bcf/din2013,
anddropslightlyto69.5Bcf/din2014.EIAexpectsgrowthinLower48
onshoreproductionwillcontinuethrough2014,andwillbeoffsetbyGulfofMexicodeclines
nextyear.

DomesticsupplycontinuestodisplacepipelineimportsfromCanadaandliquefiednaturalgas
(LNG)imports.EIAexpectspipelinegross
importswillstaymostlyflatin2013.Projected
pipelineimportsdropby0.4Bcf/d(4.5percent)in2014.GrossexportstoMexicohavegrown
substantiallysince2010,butEIAexpectsexportswillstayflatin2013andincreaseby0.2Bcf/d
(5.5percent)thefollowingyear.LNGimportsareexpectedto
remainatminimallevelsofless
than0.5Bcf/dinboth2013and2014.ExportsmainlyarriveattheElbaIslandterminalin
GeorgiaandtheEverettterminalinNewEngland,eithertofulfilllong‐termcontractobligations
ortotakeadvantageoftemporarilyhighlocalpricesduetocold
snapsanddisruptions.Higher
pricesforLNGelsewhereintheworldhavemadetheUnitedStatesamarketoflastresortfor
LNGsuppliers.


U.S.NaturalGasInventories.Inventoriesofworkingnaturalgasinstorageremainathigh
levels,aftersettinganall‐timeweeklyrecordinNovember2012.Asof
December28,working
gasstockstotaled3,517Bcf,whichis23Bcfgreaterthanthesametimein2011and389Bcf
greaterthanthepreviousfive‐year(2007‐11)average,accordingtoEIA’sWeeklyNaturalGas
StorageReport.Sofarthiswinter,withdrawalshavebeenlimited,mainlybe causeofwarmer‐
than‐normaltemperaturesinDecember.Five‐yearaverageweeklywithdrawalsinDecember
aregenerallywellabove100billioncubicfeet,butthatoccurredonlyduringthelastweekofthe
month.FortheweekendingDecember7,2012,
workinggasinventoriespostedanetinjection
of2Bcf.OnlytwoothernetinjectionshavebeenreportedinthemonthofDecember:onein
2005andtheothertimein1998.

U.S.NaturalGasPrices.Naturalgasspotpricesaveraged$3.34perMMBtuattheHenryHubin
December
2012,down$0.20perMMBtufromtheNovember2012averageand$0.17per
MMBtumorethantheDecember2011average.ThewarmDecemberpartiallyledtothe
month‐over‐monthdeclineinprices.Through2014,EIAexpectspriceswillgradually risebut
stillremainrelativelylow.EIAexpectstheHenryHub
pricewillaverage$3.74perMMBtuin
2013(comparedto$2.75perMMBtuin2012)and$3.90perMMBtuin2014.

NaturalgasfuturespricesforApril2013delivery(forthefive‐dayperiodendingJanuary3,2013)
averaged$3.38perMMBtu.Currentoptionsandfuturespricesimplythatmarket
participants
placethelowerandupperboundsforthe95‐percentconfidenceintervalforApril2013
contractsat$2.42perMMBtuand$4.73perMMBtu,respectively.Atthistimeayearago,the
naturalgasfuturescontractforApril2012averaged$3.11perMMBtuandthecorresponding
U.S.EnergyInformationAdministration|Short‐TermEnergyOutlookJanuary2013 9
lowerandupperlimitsofthe95‐percentconfidenceintervalwere$2.15perMMBtuand$4.49

perMMBtu.

Coal

U.S.CoalConsumption.EIAestimatescoalconsumptionintheelectricpowersectortotaled
829millionshorttons(MMst)in2012,thelowestamountsince1992.Lowernaturalgasprices
paidbyelectricgeneratorsledtoasignificantincreaseintheshareofnaturalgas‐fired
generation.Highernaturalgasprices,
coupledwithslightlyhigherelectricitydemand,willlead
toanincreaseincoal‐firedgenerationovertheforecastperiod.

U.S.CoalSupply.EIAestimatescoalproductiondeclinedby6.3percentin2012alongwitha
dropindomesticconsumption.Coalproductionisexpectedtodeclinebyafurther3.6percent
in
2013asprimaryandsecondaryinventorydrawscombinedwithasmallincreaseincoal
importsmeetasmallconsumptionincreasein2013.AlthoughEIAforecaststhatcoal
consumptionwillremainflatandthatinventorieswillstabilizein2014,productionisforecastto
growby3percentascoalexportsrise.

U.S.CoalTrade.EIAestimatescoalexportstotaledarecord124MMstin2012.Continuing
economicweaknessinEuropeandlowerinter nationalcoalprices areexpectedtocontributeto
lowercoalexportsin2013.U.S.metallurgicalcoalexportscouldbereducedifChinaremovesan
exporttariffonChinesecoke,
whichsteelproducersimportinlieuofmetallurgicalcoal.

U.S.CoalPrices.Deliver edcoalpricestotheelectricpowerindustryincreaseds teadilyoverthe
10‐yearperiodendingin2011,whenthedeliveredcoalpriceaveraged$2.39perMMBtu(a6‐
percentincreasefrom2010).EIAexpectsthatchangingmarketconditions,
includingweaker
domesticdemandforcoalandhighercoalinventories,willslowincreasesincoalpricesand

contributetotheshut‐inofhigher‐costproduction.EIAforecaststhatthedeliveredcoalprice
willaverage$2.40perMMBtuin2012,$2.44perMMBtuin2013,and$2.50in2014.

Electricity

U.S.ElectricityConsumption.MostregionsoftheUnitedStatesexperiencedtemperaturesthat
weremuchwarmerthannormalduring2012,inboththewinterandthesummer.Basedonthe
assumptionthattemperaturesreturnclosertonormal,EIAexpectsresidentialelectricity sales
duringthewintermonthsof2013willbehigher
thanlastyearwhilesummerelectricitysaleswill
belower,leadingtoaprojectedan nualdeclineof0.3percentduring2013.Weatherduring2014
isassumedtobesimilartothatin2013.Theprimarydriverofresidentialelectricitysalesin2014
isgrowthinthenumberofcustomers,whichwill
betemperedsomewhatbyincreased
efficiencyinresidentialelectricityconsumption.EIAprojectsretailsalestotheresidentialsector
willgrowby0.1percentduring2014.

U.S.EnergyInformationAdministration|Short‐TermEnergyOutlookJanuary2013 10
Growthinindustrialelectricityconsumptionpicksupinthesecondhalfof2013whenindustrial
electricitysalesshowyear‐over‐yeargrowthof0.7percent.During2014,industrialelectricity
salesgrowby1.8percent.

U.S.ElectricityGeneration.EIAexpectstotalgenerationofelectricitytoremainlargely
unchangedin2013andto
growby94gigawatthoursperday(GWh/d)(0.8per c ent)in2014.An
expected32‐percentincreaseinthepriceofnaturalgasdeliveredtopowergeneratorsdrivesa
264‐GWh/dreductionintheuseofnaturalgasin2013,resultinginafuelshareof27.9percent
oftotalgeneration
comparedwithashareof30.3percentin2012.Thedeclineinnaturalgas
generationthisyearisoffsetbya166‐GWh/dincreaseincoalgeneration(raisingthecoalshare

ofgenerationfrom37.6percentin2012to39.0percentin2013),a75‐GWh/dincreasein
generationfromrenewables,
anda32‐GWh/dincreaseinnucleargeneration.

EIAforecastsnaturalgaswillaccountfor27.5percentoftotalgenerationin2014andcoalwill
accountfor39.6percent,bothrelativelyunchangedfromtheprojecte d2013fuelshares.
However,thereisahighdegreeofuncertaintyinthegenerationfuel
mixforecast.Lower‐than‐
projectednaturalgaspricesalongwiththeindustry’sresponsetofutureenvironmental
regulationscouldcausethenaturalgasshareoftotalgenerationtoexceedthisforecast.

U.S.ElectricityRetailPrices.Risingcostsofinfrastructureupgradescontinuetodriveincreases
inresidentialelectricityrates,althoughlowerfuelprices
inrecentyearshavekeptgrowthin
retailratesrelativelymodest.Afteranincreaseof1.3percentduring2012,EIAexpectsretail
residentialelectricityprices willgrowby1.9percentin2013andby2.6percentin2014.

RenewablesandCarbonDioxideEmissions 

U.S.Renewables.Totalrenewableenergyconsumptionisestimatedtohavedecline dby 2.5
percentin2012asthedeclineinhydropowerfrom2011to2012morethanoffsettheprojected
growthintheconsumptionofotherrenewableenergyforms.Thisdecreasewastheresultof
hydropowerproductionfallingby0.4
quadrillionBtu(13.7percent)asthePacificNorthwestfell
fromtheunusuallyhighlevelsseenin2011.Renewableenergyconsumptionincreases3.6
percentin2013ashydropowerisprojectedtogrowby1.7percentandnonhydropower
renewablesgrowbyanaverageof4.4percent.In2014thegrowthintotalrenewables
is
projectedtocontinueatarateof1.7percentasa2.4‐percentdeclineinhydropowerismore
thanoffsetbya3.7‐percentincreaseinnonhydropowerrenewables.


Thefederalproductiontaxcredit(PTC)forwind‐poweredgenerationandotherrenewable
energysourceshasbeenextendedbeyond2012as
partofthecompromiserelatedtothefiscal
cliff.Thismonth’sSTEOdoesnotincludethepotentialeffectofthePTCextensiononthewind
andotherrenewableenergygenerationcapacityforecasts.

Wind‐poweredgenerationgrewby17percentin2012.BasedoncurrentreportingtoEIA,more
than5gigawatts
ofwindcapacitywasscheduledtocomeonlineinDecember2012,inaddition
U.S.EnergyInformationAdministration|Short‐TermEnergyOutlookJanuary2013 11
totheapproximately6gigawattsthatenteredservicefromJanuarythroughNovemberof2012.
Thisisprojectedtoleadtoanadditional13‐percentincreaseinwindgenerationin2013as
comparedto2012,asthisnewcapacitywouldbeoperatingfortheentireyear.Verylittlenew
capacitywasprojected
tocomeonlinein2013priortothePTCextensionand,asaresult,
growthingenerationin2014isprojectedtobeflat.Projectionsforcapacityadditionsmaydiffer
infutureSTEOsastheimpactofthePTCextensionisaddressed. 

Solarenergycontinuesro bustgrow th,althoughthe
totalamountremainssmallcomparedto
totalU.S.generation.Consumptionisprojectedtogrowby32percentin2012,31percentin
2013and28percentin2014.

BecauseofdroughtconditionsdepressingcornharveststhroughouttheMidwest,fuelethanol
productionfellfromanaverageof900,000bbl/dduringthefirst
halfof2012toanaverageof
820,000bbl/dinthesecondhalfoftheyear.EIAexpectsethanolproductionwillremainnear
currentlevelsthroughmid‐2013beforerecoveringtopre‐droughtproductionlevels,averaging
870,000bbl/d(13.3billiongallons)fortheyear.Ethanolproductionisexpectedtorebound

in
2014aspreviouslyidledcapacitycomesbackonlinetomeettheincreasingRenewableFuel
Standard(RFS)mandate.Ethanolproductionaverages915,000bbl/d(14.0billiongallons)in
2014,meetingtheRFSmandatealongwithbankedRenewableIdentificationNumber(RIN)
creditsgeneratedinprevious years.Theethanolshareofthegasoline
poolincreasesfroman
average9.6volumepercentin2012tojustunder11volumepercentby theendof2014,which
impliesaneedtoexpandfromthecurrent10gasstationswithE‐15blendingpumps
and2,500
E‐85stations
.

The$1‐per‐gallonbiodieselexcisetaxcreditwasrecentlyretroactivelyreinstatedbeginning
January1,2012,throughtheendof2013aspartoftheyear‐endfiscalpackage.ThisSTEOdoes
notincludethepossibleimpactofthebiodieseltaxcreditonthebiodieselforecast.Biodiesel
productionaveragedabout
65,000bbl/d(1.00billiongallons)in2012.Forecastbiodiesel
productionaverages74,000bbl/din2013and2014,withbiodieselblendingmeetingtheRFS
requirementof1.28billiongallonssetfor2013.

U.S.Energy‐RelatedCarbonDioxideEmissions.Fossilfuelemissionsareestimatedtohave
declinedby3.4percentin2012.
Thisdeclineisprojecte dtobefollowedbyanincreasesof0.9
percentin2013and0.5percentin2014.

U.S.EconomicAssumptions

ThisnewsectionoftheSTEOdiscussesthemacroeconomicassumptionsbuiltintoEIA’sshort‐
termenergyforecasts.TheeconomicprojectionsintheSTEOarederivedfromtheIHS/Global
Insight(GI)macroeconomicmodelwithEIA’senergypriceforecastsasmodelinputs.TheGI

modelusedinthisSTEOassumesthatthere
aretaxincreasesonhigher‐incomeearners
beginningin2013andmodestcutstogovernmentspending,whichareimplementedin2014.

U.S.EnergyInformationAdministration|Short‐TermEnergyOutlookJanuary2013 12
CurrentTrends.Recentindicatorscontinuetopointtoamodesteconomicrecovery,andkey
sectorssuchashousingareimproving.TheNAHBHousingIndex
hasrisenfor8consecutive
monthstolevelslastseenin2006.TheunemploymentrateinDecemberwas7.8percent,
unchangedfromNovember ,whilenonfarmpayrollemployment
grewby155,000.TheISM
ManufacturingIndexroseinDecemberto50.7(avalueabove50indicatesexpansion).One
importantindicatoroffinancialmarketuncertainty,theFederalReserveBankofChicago’s
NationalFinancialConditionsIndex(NFCI),iscurrentlybelowitsaveragelevelofzeroand
relativelyunchangedfromNovember.

U.S.Output.TheSTEOforecastforU.S.grossdomesticproduct(GDP)growthin2013is1.8
percent,risingto2.6percentin2014.Growthstartsoutslowlyin2013andthengradually
increasesthroughouttheyear,
reaching2.2percentinthefourthquarterof2013.Thesame
patternisrepeatedin2014,withrealGDPgrowthreaching2.9percentinthefourthquarter.
Residentialinvestmentandexportsareimportantdriversofthisgrowthinbothyears.

TotalindustrialproductiongrowsatafasterratethanrealGDP
in2013and2014,at1.9percent
and2.9percent,respectively.Industrialproductiongrowthinthemanufacturingsectoris
slowerthantotalproductionin2013at1.8percent,butacceleratesto3.4percentin2014.
Bothoftheseindexesmirrortherisesindemandduetohigher growthinreal
GDP.


U.S.IncomeandExpenditures.Consumptionexpendituresbegintopickupin2014,risingby
2.4percentcomparedwith2.0‐percentgrowthforecastin2013.Thisispartlyduetohigherreal
disposableincome,whichrisesduringthistimeperiodaswell.Pr ivatefixedinvestmentjumps
to9.2‐percentgrowthin
2014from5.8percenttheyearbefore,highlightingitsimportancefor
overalleconomicexpansion,andexportgrowthacceleratesaswell.Governmentexpenditures
fallmorethan1percentinbothyears.

U.S.Employment,Housing,andPrices.Theunemploymentrateintheforecas tgraduallyfalls
fromanaverageof7.8percentin
2013to7.5percentin2014.Thiswillbeaccompaniedbynon‐
farmemploymentgrowthaveragingjustabove1.5percentinbothyears.Housingstartsstand
outinthisforecast,astheyareprojectedtoincreasenearly25percentin2013andover32
percentin2014.Bothconsumerandproducer
pricescontinue toincreaseatamoderatepace.
Theconsumerpriceindex(CPI)forurbanconsumersaveragesannualgrowthof1.8percentin
2013and1.9percentin2014.Theproducerpriceindex(PPI)forallcommoditiesisforecastto
increaseby1.4percentyear‐on‐yearin2013,slowing
to0.8‐percentgrowthin2014.
U.S. Energy Information Administration
Independent Statistics & Analysis
ShortShort Term Energy Outlook Term Energy Outlook
Chart Gallery for January 2013Chart Gallery for January 2013
60
80
100
120
140
160
180

200
220
West Texas Intermediate (WTI) Crude Oil Price
dollars per barrel
Historical spot price
STEO price forecast
NYMEX futures price
95% NYMEX futures upper confidence interval
95% NYMEX futures lower confidence interval
0
20
40
Jan 2012 Jul 2012 Jan 2013 Jul 2013 Jan 2014 Jul 2014
Source: Short-Term Energy Outlook, January 2013
Note: Confidence interval derived from options market information for the 5 trading days ending January 3, 2013.
Intervals not calculated for months with sparse trading in near-the-money options contracts.
Forecast
1.50
2.00
2.50
3.00
3.50
4.00
4.50
U.S. Gasoline and Crude Oil Prices
dollars per gallon
Price difference
Retail regular gasoline
Crude oil
0.00

0.50
1.00
Jan 2009 Jan 2010 Jan 2011 Jan 2012 Jan 2013 Jan 2014
Source: Short-Term Energy Outlook, January 2013
Crude oil price is composite refiner acquisition cost. Retail prices include state and federal taxes.
Forecast
1.50
2.00
2.50
3.00
3.50
4.00
4.50
U.S. Diesel Fuel and Crude Oil Prices
dollars per gallon
Price difference
Retail diesel fuel
Crude oil
0.00
0.50
1.00
Jan 2009 Jan 2010 Jan 2011 Jan 2012 Jan 2013 Jan 2014
Source: Short-Term Energy Outlook, January 2013
Crude oil price is composite refiner acquisition cost. Retail prices include state and federal taxes.
3
4
5
6
7
8

9
Henry Hub Natural Gas Price
dollars per million btu
Historical spot price
STEO forecast price
NYMEX futures price
95% NYMEX futures upper confidence interval
95% NYMEX futures lower confidence interval
0
1
2
Jan 2012 Jul 2012 Jan 2013 Jul 2013 Jan 2014 Jul 2014
Source: Short-Term Energy Outlook, January 2013
Note: Confidence interval derived from options market information for the 5 trading days ending January 3, 2013.
Intervals not calculated for months with sparse trading in near-the-money options contracts.
Forecast
6
8
10
12
14
16
18
20
U.S. Natural Gas Prices
dollars per thousand cubic feet
Residential price
Henry Hub spot price
0
2

4
6
Jan 2009 Jan 2010 Jan 2011 Jan 2012 Jan 2013 Jan 2014
Source: Short-Term Energy Outlook, January 2013
Forecast
0
1
2
3
4
5
84
86
88
90
92
94
World Liquid Fuels Supply and Demand Balance
million barrels per day
Implied stock change and balance (right axis)
World supply (left axis)
World demand (left axis)
-3
-2
-1
78
80
82
2008-Q1 2009-Q1 2010-Q1 2011-Q1 2012-Q1 2013-Q1 2014-Q1
Source: Short-Term Energy Outlook, January 2013

Forecast
1
2
3
4
5
6
7
8
80
82
84
86
88
90
92
94
World Liquid Fuels Consumption
million barrels per day (mmbd)
annual change (mmbd)
-2
-1
0
74
76
78
2006 2007 2008 2009 2010 2011 2012 2013 2014
China United States Other
Source: Short-Term Energy Outlook, January 2013
-

0.4
-0.2
0.0
0.2
0.4
0.6
0.8
1.0
World Liquid Fuels Consumption Growth
million barrels per day
Forecast
-0.8
-0.6
0.4
2012 2013 2014
OECD* Non-OECD Asia Former Soviet Union Other
Source: Short-Term Energy Outlook, January 2013
* Countries belonging to the Organization for Economic Cooperation and Development
-0.4
-0.2
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
World Crude Oil and Liquid Fuels Production Growth

million barrels per day
Forecast
-1.0
-0.8
-0.6
2012 2013 2014
OPEC countries North America Russia and Caspian Sea
Latin America North Sea Other Non-OPEC
Source: Short-Term Energy Outlook, January 2013
00
0.5
1.0
1.5
2.0
2.5
3.0
2014
2013
2012
Non-OPEC Crude Oil and Liquid Fuels Production Growth
million barrels per day
-0.5
0
.
0
United States
Canada
China
Brazil
Colombia

Russia
Vietnam
Kazakhstan
Malaysia
India
Other North Sea
Gabon
Oman
Australia
Egypt
Sudan
Azerbaijan
United Kingdom
Mexico
Syria
Norway
Source: Short-Term Energy Outlook, January 2013
Forecast
-40
-20
0
20
40
60
80
2
3
4
5
6

7
8
World oil consumption (left axis)
Non-OPEC production (left axis)
Annual change in WTI price (right axis)
World Consumption and Non-OPEC Production Growth
million barrels per day
dollars per barrel
-100
-80
-60
2010-Q1 2011-Q1 2012-Q1 2013-Q1 2014-Q1
-1
0
1
Source: Short-Term Energy Outlook, January 2013
2
3
4
5
6
OPEC surplus crude oil production capacity
million barrels per day
Forecast
0
1
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: Short-Term Energy Outlook, January 2013
Note: Shaded area represents 2002-2012 average (2.5 million barrels per day)
Forecast

50
55
60
65
70
OECD Commercial Oil Stocks
days of supply
40
45
Jan 2008 Jan 2009 Jan 2010 Jan 2011 Jan 2012 Jan 2013 Jan 2014
Source: Short-Term Energy Outlook, January 2013
Note: Colored band represents the range between the minimum and maximum observed days of
supply from Jan. 2008 - Dec. 2012.
00
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
70
7.5
8.0
8.5
9.0
9.5

10.0
10.5
11.0
11.5
12.0
U.S. Crude Oil and Liquid Fuels Production
million barrels per day (mmbd)
annual change (mmbd)
-0.2
-0.1
0
.
0
2011 2012 2013 2014
6.0
6.5
7
.
0
Crude oil (right axis) LPG and pentanes plus (right axis)
Fuel ethanol (right axis) Biodiesel (right axis)
Total production (left axis) Production forecast (left axis)
Source: Short-Term Energy Outlook, January 2013
Forecast
300
325
350
375
400
425

U.S. Commercial Crude Oil Stocks
million barrels
250
275
Jan 2008 Jan 2009 Jan 2010 Jan 2011 Jan 2012 Jan 2013 Jan 2014
Source: Short-Term Energy Outlook, January 2013
Note: Colored band around storage levels represents the range between the minimum and maximum from
Jan. 2008 - Dec. 2012.
015
0.00
0.15
0.30
0.45
0.60
0.75
17 0
17.5
18.0
18.5
19.0
19.5
20.0
U.S. Liquid Fuels Consumption
million barrels per day (mmbd)
annual change (mmbd)
-0.30
-
0
.
15

2011 2012 2013 2014
16.5
17
.
0
Motor gasoline (right axis) Jet fuel (right axis)
Distillate fuel (right axis) Other fuels (right axis)
Total consumption (left axis) Consumption forecast (left axis)
Source: Short-Term Energy Outlook, January 2013
Forecast
120
140
160
180
200
220
240
260
U.S. Gasoline and Distillate Inventories
million barrels
Total motor gasoline inventory
60
80
100
Jan 2008 Jan 2009 Jan 2010 Jan 2011 Jan 2012 Jan 2013 Jan 2014
Source: Short-Term Energy Outlook, January 2013
Note: Colored bands around storage levels represent the range between the minimum and maximum from
Jan. 2008 - Dec. 2012.
Total distillate fuel inventory
-1

0
1
2
3
4
5
6
7
20
30
40
50
60
70
80
90
100
U.S. Natural Gas Consumption
billion cubic feet per day (bcf/d)
annual change (bcf/d)
-3
-2
2011 2012 2013 2014
0
10
Electric power (right axis) Residential and comm. (right axis)
Industrial (right axis) Other (right axis)
Total consumption (left axis) Consumption forecast (left axis)
Source: Short-Term Energy Outlook, January 2013
1

0
1
2
3
4
5
6
7
8
9
52
54
56
58
60
62
64
66
68
70
72
U.S. Natural Gas Production and Imports
billion cubic feet per day (bcf/d)
annual change (bcf/d)
-2
-
1
2011 2012 2013 2014
50
52

Federal Gulf of Mexico production (right axis) U.S. non-Gulf of Mexico production (right axis)
U.S. net imports (right axis) Total marketed production (left axis)
Marketed production forecast (left axis)
Source: Short-Term Energy Outlook, January 2013
20%
30%
40%
50%
60%
70%
80%
90%
-2,000
-1,000
0
1,000
2,000
3,000
4,000
5,000
U.S. Working Natural Gas in Storage
billion cubic feet
Deviation from average
Storage level
deviation from average
-10%
0%
10%
-5,000
-4,000

-3,000
Jan 2009 Jan 2010 Jan 2011 Jan 2012 Jan 2013 Jan 2014
Source: Short-Term Energy Outlook, January 2013
Note: Colored band around storage levels represents the range between the minimum and maximum
from Jan. 2008 - Dec. 2012.
-60
-30
0
30
60
90
120
150
180
20
30
40
50
60
70
80
90
100
U.S. Coal Consumption
million short tons (mmst)
annual change (mmst)
-120
-90
2011 2012 2013 2014
0

10
Electric power (right axis) Retail and general industry (right axis)
Coke plants (right axis) Total consumption (left axis)
Consumption forecast (left axis)
Source: Short-Term Energy Outlook, January 2013
-
40
-20
0
20
40
60
20
40
60
80
100
120
U.S. Coal Production
million short tons (mmst)
annual change (mmst)
-60
40
2011 2012 2013 2014
0
20
Western region (right axis) Appalachian region (right axis)
Interior region (right axis) Total production (left axis)
Production forecast (left axis)
Source: Short-Term Energy Outlook, January 2013

Forecast
75
100
125
150
175
200
225
250
U.S. Electric Power Sector Coal Stocks
million short tons
0
25
50
Jan 2005 Jan 2007 Jan 2009 Jan 2011 Jan 2013
Source: Short-Term Energy Outlook, January 2013
Note: Colored band around stock levels represents the range between the minimum and maximum from
Jan. 2008 - Dec. 2012.
010
-0.05
0.00
0.05
0.10
0.15
0.20
2
4
6
8
10

12
14
U.S. Electricity Consumption
million kilowatthours per day (kwh/d)
annual change (million kwh/d)
-0.15
-
0
.
10
2011 2012 2013 2014
0
2
Residential (right axis) Comm. and trans. (right axis)
Industrial (right axis) Direct use (right axis)
Total consumption (left axis) Consumption forecast (left axis)
Source: Short-Term Energy Outlook, January 2013
3.2%
2.6%
5.4%
10.3%
2.4%
5.7%
2.2%
03%
1.6%
1.3%
1.9%
2.6%
4%

8%
12%
16%
20%
24%
4
6
8
10
12
14
U.S. Residential Electricity Price
cents per kilowatthour
-1.6%
0
.
3%
-4%
0%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0
2
Annual growth (right axis) Residential electricity price Price forecast
Source: Short-Term Energy Outlook, January 2013
18.8%
20.1%
21.6%
21.4%
23.3%
23.9%

24.7%
30.3%
27.9%
27.5%
49.6%
49.0%
48.5%
48.2%
44.4%
44.8%
42.3%
37.6%
39.0%
39.6%
Forecast
4,000
6,000
8,000
10,000
12,000
14,000
U.S. Electricity Generation by Fuel, All Sectors
thousand megawatthours per day
Coal
Natural gas
Petroleum
Nuclear
Hydropower
Renewables
0

2,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Other sources
Source: Short-Term Energy Outlook, January 2013
Note: Labels show percentage share of total generation provided by coal and natural gas.
Forecast
3
4
5
6
7
8
9
10
U.S. Renewable Energy Supply
quadrillion British thermal units (Btu)
Solar
Geothermal
Other biomass
Wind power
Liquid biofuels
Wood biomass
0
1
2
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Hydropower
Source: Short-Term Energy Outlook, January 2013
Note: Hydropower excludes pumped storage generation. Liquid biofuels include ethanol and biodiesel.
Other biomass includes municipal waste from biogenic sources, landfill gas, and other non-wood waste.

Forecast
4%
6%
8%
10%
12%
U.S. Annual Energy Expenditures
share of gross domestic product
0%
2%
1987 1990 1993 1996 1999 2002 2005 2008 2011 2014
Source: Short-Term Energy Outlook, January 2013
Forecast
-6%
-4%
-2%
0%
2%
4%
6%
U.S. Energy-Related Carbon Dioxide Emissions
annual growth
-12%
-10%
-8%
2011 2012 2013 2014
All fossil fuels Coal Petroleum Natural gas
Source: Short-Term Energy Outlook, January 2013
100
150

200
250
300
350
400
450
U.S. Summer Cooling Degree Days
population-weighted
2011
2012
2013
2014
0
50
100
April May June July August September
Source: Short-Term Energy Outlook, January 2013
Note: Horizontal lines indicate 30-year normals from the National Oceanic and Atmospheric Administration
(NOAA). Historical and forecast data based on current population-weighted NOAA state data. Projections
reflect NOAA's 14-16 month outlook.
300
400
500
600
700
800
900
1000
U.S. Winter Heating Degree Days
population-weighted

2010/11
2011/12
2012/13
2013/14
0
100
200
October November December January February March
Source: Short-Term Energy Outlook, January 2013
Note: Horizontal lines indicate 30-year normals from the National Oceanic and Atmospheric Administration
(NOAA). Historical and forecast data based on current population-weighted NOAA state data. Projections
reflect NOAA's 14-16 month outlook.
U.S. Census Regions and Divisions
Source: Short-Term Energy Outlook, January 2013
06-07 07-08 08-09 09-10 10-11 Avg. 06-11 11-12 12-13 % Change
Natural Gas
Northeast
Consumption (mcf**
)
76.5 77.0 82.5 77.8 82.7 79.3 68.3 80.5 17.9
Price ($/mcf
)
14.74 15.17 15.82 13.31 12.65 14.33 12.22 12.50 2.3
Expenditures ($) 1,128 1,168 1,306 1,035 1,047 1,137 835 1,007 20.6
Midwes
t
Consumption (mcf) 79.8 83.3 86.0 83.8 85.1 83.6 69.1 83.5 20.9
Price ($/mcf
)
11.06 11.39 11.46 9.43 9.21 10.51 8.96 8.62 -3.8

Expenditures ($) 882 949 986 790 784 878 619 720 16.3
South
Consumption (mcf) 51.6 50.4 53.4 60.3 55.2 54.2 45.1 53.7 19.0
Price ($/mcf
)
13.57 14.16 14.05 11.51 11.01 12.79 11.49 11.33 -1.3
Expenditures ($) 700 714 751 694 608 694 518 608 17.4
West
Consumption (mcf) 50.8 52.9 50.5 52.2 51.7 51.6 51.7 50.3 -2.7
Price ($/mcf
)
11.20 11.31 10.86 9.91 9.67 10.59 9.38 9.21 -1.7
Expenditures ($) 569 598 549 518 500 547 485 464 -4.3
U.S. Average
Consumption (mcf) 65.4 67.0 69.0 69.2 69.5 68.0 59.4 67.9 14.3
Price ($/mcf
)
12.35 12.71 12.86 10.83 10.45 11.83 10.25 10.16 -0.9
Expenditures ($) 807 852 887 749 726 804 609 690 13.3
Heating Oil
U.S. Average
Consumption (gallons) 623.4 633.2 678.0 642.6 679.8 651.4 560.1 662.8 18.3
Price ($/gallon
)
2.42 3.33 2.65 2.85 3.38 2.93 3.73 3.86 3.5
Expenditures ($) 1,511 2,106 1,800 1,830 2,300 1,909 2,089 2,558 22.5
Electricit
y
Northeast
Consumption (kwh***

)
8,681 8,723 9,113 8,762 9,117 8,879 8,083 8,954 10.8
Price ($/kwh
)
0.139 0.144 0.151 0.152 0.154 0.148 0.154 0.151 -2.1
Expenditures ($) 1,206 1,258 1,379 1,328 1,405 1,315 1,248 1,353 8.4
Midwes
t
Consumption (kwh) 10,155 10,462 10,642 10,510 10,587 10,471 9,327 10,460 12.1
Price ($/kwh
)
0.085 0.089 0.098 0.099 0.105 0.095 0.110 0.110 -0.4
Expenditures ($) 866 934 1,038 1,036 1,107 996 1,030 1,150 11.7
South
Consumption (kwh) 8,392 8,304 8,636 9,155 8,785 8,654 7,834 8,636 10.2
Price ($/kwh
)
0.096 0.098 0.109 0.103 0.104 0.102 0.107 0.106 -0.7
Expenditures ($) 807 817 939 942 913 884 836 915 9.5
West
Consumption (kwh) 7,641 7,825 7,617 7,757 7,724 7,713 7,733 7,624 -1.4
Price ($/kwh
)
0.102 0.104 0.106 0.111 0.112 0.107 0.115 0.118 2.8
Expenditures ($) 782 811 811 859 866 826 890 901 1.3
U.S. Average
Consumption (kwh) 8,135 8,172 8,350 8,604 8,461 8,344 7,728 8,335 7.9
Price ($/kwh
)
0.101 0.104 0.112 0.110 0.113 0.108 0.116 0.116 -0.5

Expenditures ($) 822 850 936 946 953 901 898 964 7.3
Table WF01. Average Consumer Prices* and Expenditures for Heating Fuels During the Winte
r
Fuel / Region
Winter of Forecast
U.S. Energy Information Administration | Short-Term Energy Outlook - January 2013
06-07 07-08 08-09 09-10 10-11 Avg. 06-11 11-12 12-13 % Change
Table WF01. Average Consumer Prices* and Expenditures for Heating Fuels During the Winte
r
Fuel / Region
Winter of Forecast
U.S. Energy Information Administration | Short-Term Energy Outlook - January 2013
Propane
Northeast
Consumption (gallons) 786.2 793.8 846.7 796.6 847.5 814.1 706.0 824.5 16.8
Price ($/gallon
)
2.35 2.93 2.84 2.98 3.23 2.87 3.38 3.13 -7.4
Expenditures ($) 1,849 2,324 2,406 2,376 2,738 2,338 2,386 2,581 8.1
Midwes
t
Consumption (gallons) 803.5 842.8 864.4 848.6 857.7 843.4 699.3 841.7 20.4
Price ($/gallon
)
1.79 2.23 2.08 1.97 2.12 2.04 2.20 1.72 -21.8
Expenditures ($) 1,440 1,883 1,795 1,674 1,817 1,722 1,538 1,448 -5.9
Number of households by primary space heating fuel (thousands)
Northeast
Natural gas 10,612 10,774 10,958 11,069 11,317 10,946 11,523 11,685 1.4
Heating oil 6,690 6,557 6,319 6,058 5,960 6,317 5,880 5,748 -2.2

Propane 731 708 717 738 759 731 778 798 2.6
Electricit
y
2,525 2,565 2,580 2,663 2,835 2,634 2,912 2,967 1.9
Wood 375 416 477 504 522 459 555 598 7.7
Midwes
t
Natural gas 18,428 18,469 18,404 18,176 18,349 18,365 18,447 18,459 0.1
Heating oil 591 537 494 454 426 501 409 383 -6.2
Propane 2,256 2,193 2,145 2,113 2,118 2,165 2,096 2,060 -1.7
Electricit
y
4,343 4,494 4,599 4,748 5,031 4,643 5,233 5,349 2.2
Wood 502 531 587 621 632 575 640 662 3.4
South
Natural gas 14,082 14,140 14,046 13,828 13,777 13,975 13,777 13,811 0.2
Heating oil 1,124 1,057 962 913 857 983 795 751 -5.6
Propane 2,540 2,370 2,234 2,180 2,120 2,289 2,016 1,921 -4.7
Electricit
y
24,087 24,800 25,417 25,973 26,771 25,410 27,454 28,160 2.6
Wood 544 561 597 590 603 579 620 630 1.7
West
Natural gas 15,071 15,169 15,122 15,044 15,300 15,141 15,409 15,528 0.8
Heating oil 341 318 296 291 284 306 273 266 -2.7
Propane 1,003 948 942 946 929 954 921 921 0.0
Electricit
y
7,492 7,694 7,817 7,933 8,282 7,843 8,632 8,896 3.1
Wood 682 683 707 726 739 708 749 752 0.3

U.S. Totals
Natural gas 58,192 58,552 58,529 58,118 58,743 58,427 59,156 59,483 0.6
Heating oil 8,746 8,469 8,071 7,716 7,528 8,106 7,356 7,148 -2.8
Propane 6,530 6,218 6,037 5,978 5,926 6,138 5,811 5,700 -1.9
Electricit
y
38,447 39,551 40,413 41,317 42,919 40,530 44,231 45,372 2.6
Wood 2,104 2,191 2,368 2,441 2,496 2,320 2,564 2,642 3.0
Heating degree-days
Northeast 4,805 4,850 5,252 4,889 5,257 5,011 4,193 5,092 21.4
Midwes
t
5,336 5,624 5,829 5,662 5,760 5,642 4,495 5,634 25.3
South 2,378 2,313 2,523 2,902 2,629 2,549 1,991 2,529 27.0
West 2,956 3,122 2,938 3,061 3,031 3,022 3,037 2,930 -3.5
U.S. Average 3,605 3,685 3,831 3,894 3,868 3,777 3,165 3,741 18.2
*** kilowatthour
* Prices include taxes
Note: Winter covers the period October 1 through March 31. Fuel consumption per household is based only on households that use that fuel as
the primary space-heating fuel. Included in fuel consumption is consumption for water heating, appliances, and lighting (electricity). Per
household consumption based on an average of EIA 2001 and 2005 Residential Energy Consumption Surveys corrected for actual and
projected heating degree-days.
** thousand cubic feet