Annual Energy Outlook 2006 with Projections to 2030 - Usinfo.org

Market TrendsThe projections in AEO2006 are not statements ofwhat will happen but of what might happen, giventhe assumptions and methodologies used. Theprojections are business-as-usual trend estimates,given known technology, technological and demographictrends, and current laws and regulations.Thus, they provide a policy-neutral reference casethat can be used to analyze policy initiatives. EIAdoes not propose, advocate, or speculate on futurelegislative and regulatory changes. All laws areassumed to remain as currently enacted; however,the impacts of emerging regulatory changes, whendefined, are reflected.Because energy markets are complex, models aresimplified representations of energy production andconsumption, regulations, and producer and consumerbehavior. Projections are highly dependenton the data, methodologies, model structures,and assumptions used in their development.Behavioral characteristics are indicative of realworldtendencies rather than representations ofspecific outcomes.Energy market projections are subject to muchuncertainty. Many of the events that shape energymarkets are random and cannot be anticipated,including severe weather, political disruptions,strikes, and technological breakthroughs. In addition,future developments in technologies, demographics,and resources cannot be foreseen withcertainty. Many key uncertainties in the AEO2006projections are addressed through alternative cases.EIA has endeavored to make these projections as objective,reliable, and useful as possible; however,they should serve as an adjunct to, not a substitutefor, a complete and focused analysis of public policyinitiatives.