New York (Platts)--10Dec2008

A recent survey of senior oil and natural gas industry professionals
uncovered concerns about the affordability and sustainability of hydrocarbons
as an energy source, along with a "surprisingly" strong belief in the
viability of renewable energy, major financial services company Deloitte
reported Wednesday.

Deloitte's Houston-based Oil & Gas industry group sponsored the study,
based on November 5-7 phone interviews with more than 50 senior officials at
companies with annual revenues of at least $100 million, the company said in a
statement.

More than half the respondents Deloitte interviewed--53%--believe the US
could run out of reasonably priced oil within the next 25 years, while 56%
think the world will run out in the next 50 years, said Gary Adams, Deloitte's
vice chairman for oil and gas.

Most participants in the assessment group said they believed oil and gas
will no longer remain the world's cheapest energy source, with only 23% saying
it will be the cheapest energy source 25 years from now, while 71% think it is
the most-affordable source today.

"Clearly, the oil and gas professionals involved in our survey are
starting to think about the nation's transition to renewable energy and other
alternative fuels," Adams said.

Only 17% of the senior professionals involved in the sampling believe oil
and gas will be the most sustainable source of energy 25 years from now, Adams
said. Instead, 54% see renewable energy as highly sustainable in the future,
while 37% also see renewables as an affordable energy source 25 years from
now, he said.

Three of four executives in Deloitte's study group said they believed
shifting the US away from its reliance on fossil fuels for transportation is
an "appropriate goal."

Most, 56%, also indicated this was an appropriate goal for oil and gas
companies, "though many still see hydrocarbon-based energy as the best source
for long-term transportation purposes," Deloitte said. More specifically, 54%
think the best alternative in transportation fuels is natural gas, it said.

Three of four executives said they believed the US can realistically
achieve energy independence and 55% of them said this could occur in the next
15 years, according to Deloitte.

Half of the executives said they believed the main benefit of increased
offshore activity would be the creation of a buffer zone during the transition
period to renewables and other alternative fuels, Deloitte said.

In a separate Deloitte survey of US registered voters, 86% of respondents
responded favorably to renewables like solar and wind power, the company said.

"With the new presidential administration taking office, we have a unique
opportunity to find common ground on renewables and other alternative
fuels--developing a sensible and practical plan for the energy era ahead,"
Adams said.