Energy Execs: Energy independence possible by 2030, maybe sooner
May 20, 2013 | By
Barbara Vergetis Lundin
More energy executives believe that achieving energy independence in the U.S. is possible and shale gas will play a significant role, according to a KPMG survey of U.S. energy executives. KPMG's annual energy survey reveals that 62 percent of respondents believe the U.S. can attain energy independence by 2030, up from 52 percent last year. Of the 62 percent, nearly 23 percent think energy independence is possible as soon as 2020. The percentage of executives who believe that U.S. energy independence will never happen dropped by 10 percent this year -- from 27 percent in 2012 to 17 percent in 2013. "Increased domestic production, particularly from shale assets, is having a profound impact on the global energy sector, introducing new sources to the energy matrix," said John Kunasek national sector leader for energy and natural resources for KPMG. "This 'shale gale' is certainly contributing to the increased optimism among energy executives on the potential for U.S. energy independence and driving large investments into the development and production from these shale assets." ionally, 62 percent of energy executives indicate the low-cost natural gas environment in the U.S. will lead to resurgence in manufacturing and economic growth. When asked which region of the U.S. will benefit the most from this resurgence, 36 percent of respondents indicated the Northeast, followed by the Midwest (22 percent), Southwest (17 percent) and the South (16 percent). "Natural gas production, particularly here in the U.S., has drastically shifted the energy paradigm and will be key to the future of the energy industry as exports grow," Regina Mayor, oil and gas sector leader for KPMG, said. "The high production rates of natural gas and its reputation as a low-cost alternative to other energy sources continue to contribute to the recent growth in manufacturing, and as companies begin to monetize these new assets we'll also see significant benefits for the local and national economies." Despite the generally positive outlook, respondents cited regulatory and legislative pressures (47 percent), pricing pressures (26 percent), volatile commodity and input prices (19 percent), and energy prices (19 percent) as the most significant barriers to industry growth over the next year. Further, 64 percent point to political and regulatory uncertainty, as the biggest threat to their business models. For more: Related Articles: © 2013 FierceMarkets. All rights reserved. http://www.fierceenergy.com
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