Jun 05 - PRNewswire-FirstCall

Although most Americans support increased energy conservation measures and alternatives, 53 per cent do not think a solution to the country's energy problems will be found in their lifetime and nearly 80 per cent reject the suggestion that high energy costs are temporary and will go away, according to a nationwide survey of 1,001 Americans released today by RBC Capital Markets.

The survey, released in conjunction with RBC Capital Markets' annual Energy Conference being held this week in Boston, also found that consumers want more immediate measures to address the country's energy issues and are open to change to protect the environment.

"While somewhat surprising that a majority of Americans feel that a solution to our energy problems will not be reached in their lifetime, the high prices we have seen over the past year are finally causing some changes in behavior and impacting the demand for traditional energy products like diesel and gasoline," said RBC Capital Markets' analyst Joe Allman.

Seven in ten Americans said they would consider a hybrid when purchasing their next vehicle. And more than half (52 per cent) believe that people who buy and drive a hybrid car should be given tax breaks, while 44 per cent believe that a tax should be levied on those who drive SUV's or other gas- guzzling vehicles not required to perform their jobs. Sixty-one per cent said they would rather pay more for cleaner fuels than pay less for fuels that pollute.

A Desire for Action

A full 91 per cent agree or strongly agree that steps need to be taken to dramatically increase energy conservation programs and implement incentives to develop and use alternative energy sources. And this view will be expressed at polling stations across the country: 84 per cent of Americans say they will consider a candidate's position on energy issues the next time they vote, versus 52 per cent who considered this issue when voting in 2004.

When asked if the U.S. government should step in and provide financial incentives to coal-fired power plant operators so they can retrofit existing plants to make them cleaner, 83 per cent of Americans agreed. Seventy-one per cent said they favor the building of coal fired power plants provided they are environmentally friendly and nearly one-third (31 per cent) of those polled say they would support the building of a clean coal technology plant in their own hometown.

Three quarters of those surveyed (77 per cent) recognize that solar and wind power needs U.S. government support to be viable energy sources, and eight out of ten believe the government should ensure that wind terminals are placed along federal highways or roadways.

Wind terminals and solar plants (60 per cent and 64 per cent respectively) are by far the most accepted by Americans when they are asked what energy-producing facilities they would accept in their hometown. And Americans clearly see offshore drilling as a possible solution. More than three quarters (77 per cent) believe restrictions to drill for oil off the Atlantic coast should be lifted "as long as every effort is made to protect the environment."

Although three quarters of those surveyed recognize that the U.S. has the necessary cropland to produce enough ethanol to replace imported oil, more than half (55 per cent) of respondents say they would remove tariffs and trade barriers on ethanol produced in other countries so that U.S. consumers could have ready access to this alternative energy source. Close to seven in ten (67 per cent) Americans understood that Americans could save ten billion gallons of gasoline each year by using ethanol to replace imported oil.

More Energy Education Needed

The survey suggests that energy conservation and alternatives could be implemented more swiftly with more education about options:

 

     -  One in three don't know that significant gas savings can be achieved        

by using ethanol without any vehicle modifications or taxpayer subsidies     

-  One in three think they will see a UFO before their car runs on ethanol   

To help address the issue, 65 per cent say that the U.S. government should require states to include energy conservation instruction as part of driver education classes.

"With the percentage of voters with energy issues on their minds increasing, the survey highlights the opportunity for the U.S. government to adopt a much more aggressive and comprehensive energy policy," said RBC Capital Markets analyst Kurt Hallead. "In general, the interest in new energy technologies is part of our thesis that what was once considered 'alternative' sources of energy supply are on the verge of becoming mainstream.

"It is also promising that most voters would approve lifting the offshore drilling moratorium as this has been a major source of conflict within the Senate. However, the one disappointing fact is the American public still does not understand that new refinery capacity in the US is a necessity for increasing gasoline supplies and bringing down prices at the pump."

Building Close to Home

Three quarters of Americans said they would accept some sort of plant or energy producing facility in their hometown. Of the one-quarter who said they would not accept any kind of facility in their backyard, including the options of solar plants and wind terminals, that group's views varied significantly from the majority of those willing to have at least one form of energy producing facility in their hometown. The one in four group (NIMBYs):

 

     -  Were less interested in candidates' positions on energy issues in        

2004 (43 per cent vs 54 per cent) and less motivated to learn about        

these positions the next time they vote (76 per cent vs 87 per cent)     

-  Were more likely to believe that high energy costs are temporary and        

will go away (30 per cent vs 18 per cent)     

-  Are comprised mainly of women (67 per cent). Women are much more        

leery of nuclear power, with 65 per cent saying that this energy        

source scares them, compared to 33 per cent of men. Men would rather        

have a nuclear power plant (32 per cent) in their hometown than an        

oil refinery (25 per cent). For women, nuclear power is last.   

"Coal as an energy option should be explored more and talked about more, particularly the technologies available today that can make coal plants more environmentally friendly," said RBC Capital Markets analyst Scott Hanold. "The U.S. is one of the largest coal-reserve holders in the world and Americans cite coal as the energy option they would prefer after solar and wind and before oil and nuclear in their hometowns."

About RBC Capital Markets Energy

RBC Capital Markets is the corporate and investment banking arm of RBC Financial Group. The firm is a significant petroleum and energy related industry advisor and underwriter to companies around the world, with complementary strengths in global fixed income origination and distribution business. In the past several years, it has led some of the largest equity financings in the North American energy sector. In Canada, RBC Capital Markets is proud to have several top rankings in energy-related research.

The RBC Capital Markets survey was conducted May 17 to 26, 2006 and included 1,001 online respondents. Stamford, CT-based InsightExpress assisted RBC Capital Markets in the survey. The margin of error was plus or minus 1.35 per cent.

RBC Capital Markets

CONTACT: For further information or full survey results, please contact: Kevin Foster, RBC Capital Markets, (212) 428-6902, kevin.foster@rbccm.com; Loretta Healy, The Hubbell Group, (781) 878-8882, lhealy@hubbellgroup.com ;Katherine Gay, RBC Capital Markets, (416) 974-6286, katherine.gay@rbccm.com