On March 3, the Bipartisan Policy Center hosted the announced release of the U.S. Energy Information Administration’s Annual Energy Outlook (AEO) 2022. This much-anticipated report describes EIA’s unbiased view of energy markets reflected in several core scenarios performed using the National Energy Modeling System (NEMS), a complex energy model of U.S. supply and demand created and maintained by EIA. The core scenarios include a reference case and several alternative scenarios that provide insights into potential changes in energy markets resulting from a range of assumptions about future oil prices, oil and natural gas resources, macroeconomic levels, and renewable costs. The reference case this year also includes the potential effects of select provisions from the recently passed Infrastructure Investment and Jobs Act (IIJA) including the Civil Nuclear Credit Program, the Strategic Petroleum Reserve drawdown and sales, and overall increased government spending related to the Act.
