Oil prices seen rising, cutting into growth

Government ups its price projections for crude by nearly 20 percent, says greenhouse gasses will rise by 25 percent unless policies are changed.

Subscribe to Economy
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Steve Hargreves, CNNMoney.com staff writer

oil_pump_silhouette_2.03.jpg
Oil prices seen rising, curbing economic growth. Greenhouse gasses to soar.

NEW YORK (CNNMoney.com) -- The government increased its projection for oil prices Wednesday, and said those higher prices will chip away at economic growth.

Oil prices are expected to average about $67 dollars in 2010, according to the Energy Information Administration's 2008 long term energy outlook. That's almost 13 percent higher than last year's projection, when EIA said prices should average $59 in 2010.

The agency restated its long-held view that more production coming online in the next few years will help ease prices from their current level of over $90 a barrel.

By 2030 oil prices are expected to average $72 a barrel, in 2006 dollars. That's 18 percent higher than EIA projected last year.

Dearer oil will crimp economic growth. EIA projects the economy will grow by 2.6 percent per year between now and 2030, down from last year's projection of a 2.9 percent growth rate.

Under current policies, renewable energy use will continue to rise, nearly doubling by 2030. That's about 25 percent higher than EIA projected last year, which the agency attributed to more states enacting laws requiring utilities to buy a chunk of power from renewable resources. But by 2030, absent new policies, EIA said renewables will still account for just a few percentage points of the countries overall energy use.

Without a change in policies, the nation will emit 25 percent more carbon dioxide in 2030 than it did in 2006, EIA said.

Scientists say the world must reduce carbon dioxide emissions by 80 percent by 2050 if it is to avoid the most damaging effects of global warming.  To top of page

Photo Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
Sponsors

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.