The Annual Energy Outlook 1997 (AEO97) presents midterm forecasts of energy supply, demand, and prices through 2015 prepared by the Energy Information Administration (EIA). These projections are based on results of EIA`s National Energy Modeling System (NEMS). This report begins with a summary of the reference case, followed by a discussion of the legislative assumptions and evolving legislative and regulatory issues. ``Issues in Focus`` discusses emerging energy issues and other topics of particular interest. It is followed by the analysis of energy market trends. The analysis in AEO97 focuses primarily on a reference case and four other cases that assume higher and lower economic growth and higher and lower world oil prices than in the reference case. Forecast tables for these cases are provided in Appendixes A through C. Appendixes D and E present summaries of the reference case forecasts in units of oil equivalence and household energy expenditures. Twenty-three other cases explore the impacts of varying key assumptions in NEMS--generally, technology penetration, with the major results shown in Appendix F. Appendix G briefly describes NEMS and the major AEO97 assumptions, with a summary table. 114 figs., 22 tabs.