Although alternative energy is on the rise in the US along with President Obama’s New Energy Plan, a large majority of oil and gas executives do not feel the US can attain energy independence by 2030, according to a survey conducted by KPMG LLP’s Global Energy Institute.
Most surveyed said mass production of alternative energy simply is not viable in the short term. And while there is a marked shift in their acknowledgement of global warming, the majority does not support proposed regulations to stem carbon dioxide emissions. Of the 382 oil and gas financial executives polled by KPMG in April, 63% said energy independence is not possible until after 2030. Only 16% said it might happen by 2030, while an optimistic 9% said independence is possible before 2020.
Also, 63% of the respondents said Obama’s plan to eliminate tax breaks for intangible drilling costs will actually push more companies to shift their drilling efforts overseas and will result in unconventional oil and gas wells not being drilled in the US, a factor that likely will slow the race toward energy independence.
"Despite the increased focus on domestic energy sources, energy infrastructure, and alternative energy sources, a realistic assessment of technology and investment in the industry suggests energy independence is not realistic for at least 2 decades," said Bill Kimble, executive director of KPMG Global Energy Institute. "The executives’ perceptions of energy independence mirror their views on the viability of alternatives in the near term as well."
Oil and gas executives expect Obama’s energy policy to focus primarily on alternative and renewable energy sources; however, 52% said mass production of any alternative energy just isn’t feasible by 2015. That’s down from 54% last year and 60% from 2 years ago.