U.S. energy outlook and future energy impacts

Energy markets were not immune to the 2007 financial crisis. Growth in the Indian and Chinese economies is placing strains on global energy supplies that could force a repeat of the 2008 price spike of $145/bbl for crude oil. Emerging market growth coupled with inefficiencies, frictions, and speculation in the energy markets has the potential to create drastic economic shocks throughout the world. The 2007 economic crisis has pushed back investment in energy projects where a low-growth scenario in world GDP could create drastic price increases in world energy prices. Without a long-term energy supply plan, the U.S. is destined to see growth reduced and its trade imbalances continue to deteriorate with increasing energy costs. Analysis of the U.S. natural gas futures markets and the impact of financial speculation on natural gas market pricing determined that financial speculation adds to price movements in the energy markets, which could cause violent swings in energy prices.