Report predicts oil at $51 a barrel in 2025

| 4/16/2004

Crude oil prices will eventually reach $51 a barrel by 2025 because of inflation and rising energy needs in developing nations, according to an Energy Department projection.

The report by the DOE's Energy Information Administration said strong economic growth in Asia would drive world energy prices in the next decade. The developing world's demand for energy will nearly double by 2025 with oil, coal and natural gas leading the way.

The report projects global energy demand to grow about 54 percent by 2025. But China, India and other developing countries will see a 91 percent jump as these countries continue rapid industrial development, said the EIA.

OPEC producers are expected to still be the major oil suppliers in 2025, the report said. They now account for about a third of the oil being pumped.

The current average U.S. retail price of diesel fuel is $1.679 – the highest prices are in California, where the average is $2.162.