Assumptions to the Annual Energy Outlook 2003

Table 1.  Summary of AEO2003 Cases

Case name

 Description

Integration mode

Reference

Baseline economic growth,world oil price,and technology assumptions

Fully integrated

Low Economic Growth

Gross domestic product grows at an average annual rate of 2.5 percent, compared to the reference case growth of 3.0 percent.

Fully integrated

High Economic Growth

Gross domestic product grows at an average annual rate of 3.5 percent,compared to the reference case growth of 3.0 percent

Fully integrated

Low World Oil Price

World oil prices are $19.04 per barrel in 2025,compared to $26.57 per barrel in the reference case

Fully integrated

High World Oil Price

World oil prices are $33.05 per barrel in 2025,compared to $26.57 per barrel in the reference case

Fully integrated

Residential: 2003 Technology

Future equipment purchases based on equipment available in 2003.Existing building shell efficiencies fixed at 2003 levels

With commercial

Residential:
High Technology

Earlier availability,lower costs,and higher efficiencies assumed for more advanced equipment.Heating shell efficiency increases by 12 percent from 1997 values by 2025.

With commercial

Residential: Best
Available Technology

Future equipment purchases and new building shells based on most efficient technologies available.Heating shell efficiency increases by 16 percent from 1997 values by 2025.

With commercial

Commercial: 2003 Technology

Future equipment purchases based on equipment available in 2003. Building shell efficiencies fixed at 2003 levels.

With residential

Commercial: High Technology

Earlier availability,lower costs,and higher efficiencies assumed for more advanced equipment. Building shell efficiencies increase 50 percent faster than in the
reference case.

With residential

Commercial: Best
Available Technology

Future equipment purchases based on most efficient technologies available. Building shell efficiencies increase 50 percent faster than in the reference case.

With residential

Industrial: 2003
Technology

Efficiency of plant and equipment fixed at 2003 levels.

Standalone

Industrial: High Technology

Earlier availability,lower costs,and higher efficiencies assumed for more advanced equipment.

Standalone

Transportation: 2003 Technology

Efficiencies for new equipment in all modes of travel are fixed at 2003 levels

Standalone

Transportation: High Technology

Reduced costs and improved efficiencies are assumed for advanced technologies.

Standalone

Integrated
2003 Technology

Combination of the residential, commercial, industrial, and transportation 2003 technology cases, electricity low fossil technology case, and assumption of renewable technologies fixed at 2002 levels.

Fully Integrated

Integrated
High Technology

Combination of the residential, commercial, industrial, and transportation high technology cases, electricity high fossil technology case, high renewables case, and advanced nuclear cost case.

Fully Integrated

Electricity:  Advanced Nuclear Cost

New nuclear capacity is assumed to have both lower capital costs than in the reference case

Partially Integrated

Electricity: High Demand

Electricity demand increases at an annual rate of 2.5 percent, compared to 1.8 percent in the reference case.

Partially Integrated

Electricity: High Fossil Technology

New advanced fossil generating technologies are
assumed not to improve over time from 2003.

Partially Integrated

Renewables: High Renewables

Lower costs and higher efficiencies for central-station renewable generating technologies and for distributed photovoltaics,approximating U.S.Department of Energy goals for 2025. Includes greater improvements in residential and commercial photovoltaic systems,more rapid improvement in recovery of industrial biomass byproducts,and more rapid improvement in cellulosic ethanol production technology.

Fully integrated

Oil and Gas:Slow Technology

Cost,finding rate,and success rate parameters adjusted for 15-percent slower improvement than in the reference case.

Fully integrated

Oil and Gas:  Rapid Technology

Cost,finding rate,and success rate parameters adjusted for 15-percent more rapid improvement than in the reference case.

Fully integrated

Coal: Low Mining Cost

Productivity increases at an annual rate of 3.1 percent, compared to the reference case growth of 1.6 percent. Real wages and real mine equipment costs decrease by 0.5 percent annually,compared to constant real wages and equipment costs in the reference case.

Fully integrated

Coal: High Mining Cost

Productivity increases at an annual rate of 0.1 percent, compared to the reference case growth of 1.6 percent. Real wages and real mine equipment costs increase by 0.5 percent annually,compared to constant real wages and equipment costs in the reference case.

Fully integrated