Overview
- U.S. electricity use is forecast to rise 1% in 2026 and 3% in 2027, marking the strongest four-year demand increase since 2000, with data centers as the main driver.
- Natural gas output is projected to reach nearly 109 billion cubic feet per day in 2026 as supply underpinning power needs becomes vital with expanding LNG exports.
- Henry Hub prices are expected to average just under $3.50 per MMBtu in 2026 before climbing to $4.60 in 2027 on higher LNG shipments and power-sector consumption.
- Global liquid fuels supply is seen outpacing demand, pushing Brent crude to about $56 per barrel in 2026 and nudging U.S. crude output slightly lower, with the forecast assuming current Venezuela sanctions remain in place.
- Solar is set to provide the largest generation gain after nearly 70 gigawatts of new capacity, lifting solar output about 21% in both 2026 and 2027 as coal generation declines and average U.S. gasoline prices fall to roughly $2.90 per gallon.