As of December 31, 2004, EIA estimated that the United States had proven natural gas reserves of 192.5 trillion cubic feet (Tcf), or about 3 percent of world reserves (6th in the world). EIA forecasts U.S. natural gas consumption for 2005 at about 22.3 Tcf, with gross imports of 4.2 Tcf. More than 80 percent of U.S. natural gas imports come from Canada, mainly from the western provinces of Alberta, British Columbia, and Saskatchewan. Overall, the United States depends on natural gas for about 22 percent of its total primary energy requirements (oil accounts for around 41 percent and coal for 23 percent).

Average retail regular gasoline prices increased sharply after Hurricanes Katrina and Rita. EIAs latest Short-Term Energy Outlook forecasts gasoline prices (self-serve, regular) to average close to $2.38 per gallon for November 2005, down from $2.72 per gallon in October. The average pump price for the third quarter of 2005 is now expected to be about $2.56 per gallon, up $0.67 per gallon from the third quarter of last year. Hurricane recovery should result in further price decreases by the first quarter of 2006. Annual gasoline prices are projected to average $2.29 per gallon in 2005 and $2.43 per gallon in 2006. Should colder weather prevail, retail gasoline prices are projected to be 10-14 cents per gallon higher, on average, during the winter months. The real price of gasoline (in inflation adjusted 2005 dollars) remains below the 1981 peak.

EIA forecasts that the United States will have total net oil imports (crude and products) of 12.2 million bbl/d during 2005, representing around 58 percent of total U.S. oil demand. Overall, the top suppliers of crude oil to the United States during January-August 2005 were Canada (1.6 million bbl/d), Mexico (1.6 million bbl/d), Saudi Arabia (1.5 million bbl/d), Venezuela (1.3 million bbl/d), and Nigeria (1.0 million bbl/d).

As of October 2005, the US economy continued to expand, with 2005 real growth in gross domestic product (GDP) running at about 3.5 percent. This follows real GDP growth of 4.2 percent in 2004. The U.S. unemployment rate was estimated at 5.0 percent in October, down slightly from 5.1 percent in September, with the economy creating 56,000 net jobs during the month.
For 2005, the U.S. merchandise trade deficit is expected to total $782 billion, up from $665 billion in 2004. The current account deficit now is running at about 6.6 percent of GDP, compared to 1.5 percent in 1995. The U.S. budget deficit was $319 billion in fiscal year (FY) 2005, down from $412 billion in FY 2004. Despite the deficits, the dollar has generally appreciated against several major currencies, including the Euro and the Japanese Yen, during 2005.

According to OGJ, the five countries in the North Sea region had combined, proven natural gas reserves of 169.8 trillion cubic feet (Tcf). Two countries, Norway and the Netherlands, account for over three-fourths of these reserves. On the other hand, the United Kingdom is the largest producer. The North Sea region is an important source of natural gas for Europe, second only to Russia in total exports to the European Union (EU). Natural gas production in the region has increased dramatically since the early 1980s, with a 2003 production level of 9.9 Tcf that was 56 percent above the 1980 level. However, regional natural gas production has begun to flatten, with only Norway adding any significant new capacity in recent years.

The North Sea Region consists of Key European countries namely Norway, The United Kingdom, Denmark, The Netherlands and Germany. The North Sea contains Western Europes largest oil and natural gas reserves and is one of the worlds key non-OPEC producing regions. Norway and the United Kingdom represent the large majority of oil activities in the North Sea. According to Oil and Gas Journal (OGJ), the five countries in the North Sea region had 14.8 billion barrels of proven oil reserves in 2005. Norway contains the bulk of these reserves (57 percent), followed by the UK (30 percent). Total oil production for the North Sea region, including on- and offshore, was 5.9 million barrels per day (bbl/d), down 5.6 percent from peak production in 1999. Norway and the UK are the largest producers, though Denmark is also a net exporter.

The North Sea Region consists of Key European countries namely Norway, The United Kingdom, Denmark, The Netherlands and Germany. The North Sea contains Western Europes largest oil and natural gas reserves and is one of the worlds key non-OPEC producing regions. Norway and the United Kingdom represent the large majority of oil activities in the North Sea. The North Sea region is the second-largest supplier of natural gas to continental Europe, after Russia.

West African Power Pool (WAPP)

In an effort to improve power reliability and encourage private sector investment, ECOWAS has been working to establish the West African Power Pool (WAPP). In October 2000, 14 ECOWAS members signed an agreement to launch a project to boost power supply in the region. The WAPP agreement reaffirmed the decision to develop energy production facilities and interconnect their respective electricity grids. In December 2003, ECOWAS Heads of State signed the ECOWAS Energy Protocol, which provides open and non-discriminatory access to power generation sources and transmission facilities. In order to fully establish the WAPP within ECOWAS, project managers have identified four phases of the project that will be carried out over a 20-year period. The first phase involves laying the ground rules for how the WAPP will function and linking interconnection lines between zone A countries (Burkina Faso, CÔte dIvoire, Ghana, Niger and Togo) and zone B countries (Cape Verde, the Gambia, Guinea, Guinea Bissau, Liberia, Mali, Senegal and Sierra Leone). Completion of the first phase is set for the end of 2006. The second phase (2007 – 2012) includes building missing links along Nigerias coastal line, development of new institutional entities and implementing policies from phase one. Phases three and four (2012 – 2023) involve making the system fully operational. USAID has funded the planning for WAPP which included (1) ECOWAS Vision Statement and Action Plan for WAPP (2) agreements on rules for trading electricity (3) regional regulatory body (4) dispute resolution mechanism (5) mechanisms for cooperation to maintain grid stability and (6) training in energy modeling and forecasting. The World Bank has committed a $350 million credit for the development of WAPP. Of this amount, $40 million has been secured by Ghana to implement the 330 kv Aboadze-Volta transmission line. USAID-funded implementing partners working with ECOWAS and national utility corporations include PA Consulting, Nexant, Associates for International Resources and Development, Purdue University, and the U.S. Energy Association.

Only about one in three ECOWAS citizens currently has access to electricity and analysts predict that electricity demand in the Community will increase by five percent annually over the next 20 years. West Africas total installed electric generating capacity was 9.8 gigawatts (GW) at the beginning of 2003, the majority of which is thermal. Total electricity generation for the region in 2003 was 31.0 billion kilowatthours (Bkwh), with Nigeria (15.7 Bkwh), Ghana (8.8 Bkwh) and Cote dIvoire (5.1 Bkwh) being the largest generators. In 2003, total regional electricity consumption was 28.4 Bkwh, led by Nigeria (14.5 Bkwh, 50.1 percent). Ghana (5.1 Bkwh, 17.8 percent), Cote dIvoire (3.4 Bkwh, 12.0 percent) and Senegal (1.2 Bkwh, 4.3 percent) were the next largest electricity consumers.

West Africa contains approximately 32 percent of Africas total natural gas reserves. Nigeria holds the Communitys largest proven reserves with 185 trillion cubic feet (Tcf). However, proven reserves are also located in CÔte dIvoire (1.0 Tcf), Ghana (840 billion cubic feet; Bcf), and Benin (40 Bcf). Although natural gas is still in early stages of use in the region, several projects are under way that should increase the future use of the resource.