Bad News: EIA Sees Oil Prices Rising Steadily Over Next 20 Years

The US Energy Information Administration (EIA) issued a forecast that world oil prices will climb steadily to $130 per barrel by 2030 as the global economy recovers. EIA also forecast that worldwide energy demand would grow 44% by 2030, driven largely by strong economic growth in the developing world, especially China and India.

EIA assumes a growth rate in world energy demand of 1.5% per year. That means the world will need to find an additional 22 million barrels per day of oil above the current production level of 85 million barrels per day to meet petroleum demand in 2030, EIA said.