HOUSTON, Texas, US, May 16, 2007.
Executives in the U.S. oil and gas industry say government involvement in supporting the development of renewable energy sources is necessary to alleviate the problem of declining oil reserves.
In a survey of 553 financial executives in April, the tax firm KPMG found 25% of respondents want at least 75% of government funding into energy to be directed at renewables, and another 44% want at least 50% to be allocated in the same way. An overwhelming majority (82%) cite declining oil reserves as a concern.
“These executives are deeply concerned about declining oil reserves, a situation they see as irreversible and worsening,” says Bill Kimble of KPMG. “They see renewable energy sources as a lifeline but our survey shows that the execs recognize they cannot count on them as a solution in the short-term. Consequently, oil and gas companies are sending a clear signal to the government that intervention is needed.”
While oil and gas executives want renewables to become a mass-produced reality, 60% say it will not be possible by 2010. Of those that do believe it, 18% say ethanol is the most viable for mass production by 2010, 13% say biodiesel and only 3% say cellulosic ethanol.
The trend of declining oil reserves is irreversible, according to 60% of respondents, and the impact of emerging markets on declining oil reserves will make the situation worse, according to 70%. One-third of the executives said their next personal car will be one that consumes less gasoline, such as a hybrid.
Sixty-five percent of respondents believe global warming is occurring but that it is a natural weather cycle, while 11% do not believe it is occurring. Just under one quarter believe CO2-induced global warming is occurring.
