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U.S. Energy Secretary Chris Wright discusses falling national average gas prices under President Donald Trump, highlights the need for reliable energy in the face of new demands like AI and more on ‘Kudlow.’
Oil and gasoline prices are expected to fall next year, according to a recent forecast from the Energy Information Administration (EIA).
The EIA released its short-term energy outlook in November, which forecast that the price of Brent crude oil will fall from $69 per barrel in 2025 to $55 per barrel next year. This would be well below the $81 per barrel that would prevail in 2024.
Gas prices are also expected to continue their decline next year. Retail gasoline prices averaged $3.30 per gallon in 2024 and are $3.10 per gallon this year, but are expected to fall further to $3 per gallon in 2026, according to the EIA report.
U.S. crude oil production increased this year and is expected to remain level in 2026, with the EIA finding the U.S. produced 13.2 million barrels per day in 2024. The agency projects crude oil production will be 13.6 million barrels per day in 2025, the same as in 2026.
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Gas and crude oil prices are expected to fall next year, according to the EIA outlook. (Zeng Hui/Xinhua via Getty Images)
Natural gas prices are expected to continue rising after a notable rise this year. The price of natural gas at Henry Hub was $2.20 per million British thermal units (BTU) in 2024 and increased to $3.50 in 2025, while the EIA projects its rise to continue to $4 in 2026.
In recent years, the United States has become the world’s largest exporter of liquefied natural gas (LNG)occupying the top spot in 2023 and 2024, and export levels continued to increase.
The EIA noted that the United States exported 12 billion cubic feet per day of LNG last year, rising to 15 billion cubic feet per day in 2025 and 16 billion cubic feet per day in 2026.
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The United States dominated global LNG exports in 2023 and 2024, with export volumes expected to increase this year and next. (Stefan Sauer/photo alliance via Getty Images)
The EIA report also broke down the share of electricity production by source in the United States, which showed natural gas as 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 – a category that includes hydropower, solar, wind, geothermal and biomass – accounted for 23% in 2024 and is on an upward trend, with the EIA setting its share at 24% for 2025 and forecasting an increase to 26% in 2026.
Microsoft is reopening the shuttered Three Mile Island nuclear power plant to help meet growing energy demand from AI data centers. (Heather Khalifa/Bloomberg via Getty Images)
The share of nuclear The share of the energy mix decreased slightly, from 19% to 18% between 2024 and 2025, while it is expected to remain at 18% in the new year.
Coal’s share of total electricity generation has also remained relatively stable, with the EIA reporting it was 16% last year, 17% in 2025 and forecasting a return to 16% in 2026.
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The report also addressed carbon dioxide (CO2) emissionswhich increased slightly from 4.8 billion tonnes in 2024 to 4.9 billion tonnes this year. The EIA predicts it will return to 4.8 billion tonnes in 2026.
