U.S. Secretary of Energy Chris Wright discusses falling national average gas prices under President Donald Trump, emphasizes the need for reliable energy in light of new demands like AI and more on ‘Kudlow’.
Oil and gasoline Prices are expected to decline next year, according to a recent forecast from the Energy Information Administration (EIA).
The EIA published its Short-Term Energy Outlook in November, predicting the price of Brent crude oil will fall from $69 per barrel in 2025 to $55 per barrel next year. That would be well below the 2024 $81 per barrel.
Gas prices The decline is expected to continue next year. Retail gas prices averaged $3.30 per gallon in 2024 and are at $3.10 per gallon this year, but are expected to decline further to $3 per gallon in 2026, according to the EIA’s report.
U.S. crude oil production has increased this year and is expected to remain at 2026 levels. The EIA shows that the US produced 13.2 million barrels per day in 2024. The agency forecast that crude oil production will reach 13.6 million barrels per day in 2025 – the same as in 2026.
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According to the EIA’s outlook, gas and crude oil prices are expected to decline next year. (Zeng Hui/Xinhua via Getty Images)
Natural gas prices are expected to continue rising after a notable increase this year. The natural gas price at Henry Hub was $2.20 per million British thermal units (BTUs) in 2024 and rose to $3.50 in 2025, while the EIA predicts the increase will continue to $4 in 2026.
In recent years, the US has become the world’s largest exporter liquefied natural gas (LNG)which held the top position in 2023 and 2024, and export levels have continued to rise.
EIA noted that the US exported 12 billion cubic feet of LNG per day last year, and that figure would rise to 15 billion cubic feet per day in 2025 and 16 billion cubic feet per day in 2026.
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The US led the world in LNG exports in 2023 and 2024, with export volumes expected to rise this year and next. (Stefan Sauer/Photo Alliance via Getty Images)
The EIA report also broke down the share of generation of electricity per source in the US, where natural gas was the largest source with a 40% share in 2025 and 2026, down slightly from 42% a year ago.
The share of electricity generated by renewable energy sources – a category that includes hydro, solar, wind, geothermal and biomass – reached 23% in 2024 and is on an upward trend, with EIA estimating the share at 24% in 2025 and predicting an increase to 26% in 2026.
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Microsoft is reopening the shuttered Three Mile Island nuclear power plant to help meet rising energy demand from AI data centers. (Heather Khalifa/Bloomberg via Getty Images)
The share of nuclear energy of the energy mix fell slightly from 19% to 18% between 2024 and 2025, while this is expected to remain stable at 18% in the new year.
Coal’s share of total electricity generation has also remained relatively flat; according to the EIA this was 16% last year, 17% in 2025 and a return to 16% in 2026 is predicted.
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The report also addressed it carbon dioxide (CO2) emissionswhich increased slightly from 4.8 billion tons in 2024 to 4.9 billion tons this year. EIA predicts this will return to 4.8 billion tonnes by 2026.
