Oil and gas company executives are predicting a boost in renewable energy use over the next five years, according to a new survey conducted by leading accounting and consulting firm BDO Seidman LLP.
CFOs from 100 US oil and gas exploration and production companies found that nearly 10 executives predicted renewable energy to gain a larger share of the market in the next five years with better than one in five executives expecting the share to more than double. In addition, nearly two-thirds of the executives favored controls on carbon dioxide emissions, although a third said they preferred state over federal regulation.
"This was one of the most surprising findings in the survey," said Charles Dewhurst, head of BDO Seidman’s energy industry practice, adding that energy executives tend to oppose greater regulation. A few years ago oil and gas industry executives were largely united in their opposition to mandatory controls on carbon dioxide.
When asked what market share renewable energy — solar, wind, biofuels and hydroelectric power — is expected to have in five years, 64% of the corporate financial officers said it would grow to between 8%- 12%, while 22% of the executives said they expect the market share to grow between 13% to 16% or more.
Currently these renewable sources count for about 7% of US energy production, according to the Energy Information Administration.
Furthermore, if oil and gas companies are onboard, the potential for alternative/renewable fuel could continue its upward growth and become a leading investment vehicle throughout the world.