EIA lowers oil demand forecast

NVDL: I think world GDP growth will decline by 1% or more in 2009. I don't see how it can improve subsequently. Even if it does, my longer term prognosis is downward (which is contrary to the EIA view).

Notice gas consumption for electricity is set to increase 0.4% this year. The idea that energy use decreases during a Depression is misleading. In the last Depression this happened only in one year, otherwise energy use increased year upon year upon year.

clipped from www.ogj.com EIA now expects US real gross domestic product (GDP) to decline 2.8% in 2009, leading to a reduction in energy consumption for all major fuels. EIA forecasts that an economic rebound will begin in 2010, with 1.9% year-over-year growth in US real GDP. EIA assumes that worldwide GDP growth will decline 0.8% this year, followed by growth of 2.6% in 2010, compared with last month's assumption of a 0.1% decline this year and 3% growth next year. EIA expects WTI to average $42/bbl in 2009, and $53/bbl in 2010. These price forecasts are slightly lower than in the previous STEO. EIA sees US natural gas consumption declining 1.3% this year, and then rebounding a bit in 2010. However, EIA forecasts that gas consumption by the electric power sector will grow 0.4% in 2009.