A new survey by the American Petroleum Institute finds that many U.S. adults now recognize that the nation will need more energy in the next 20 years and that renewable sources currently meet less than 10% of energy needs.
But the survey also found that Americans still have fundamental misperceptions on key energy issues—including the importance of oil and natural gas in meeting future demand—at a time when elected leaders are considering policies that could affect the country for decades to come.
The release of the second “Energy IQ” survey, conducted for API by Harris Interactive, comes after a series of national polls found broad public support for increased access to U.S. oil and natural gas resources.
In comparing the results to last year’s survey, Harris Interactive found that respondents showed increased knowledge on key issues such as the competitive advantage foreign government-owned oil companies have over U.S. companies and the restrictions that current policies place on the development of America’s own resources.   

However, U.S. adults continued to underestimate the importance of fossil fuels in meeting future global demand, the amount of known oil and natural gas reserves in the world and the level of investments that the industry is making in emerging technologies.  Conversely, respondents overestimated the role that renewables will play in meeting future energy demand, the amount of oil the U.S. imports from the Middle East and industry earnings as a percentage of sales.

 “High energy costs have brought some issues into focus,” says Harris Interactive senior vice president Jim Hoskins.  “Our survey found that a majority of Americans understand that the United States will need more energy, and they are becoming more aware of how current policies limit increased domestic production.  On the other hand, Americans continue to demonstrate a lack of knowledge, and in some cases serious misperceptions, on a range of key energy questions.” 

 API president and chief executive Red Cavaney says that it is clear, from recent polls that the majority of Americans see energy as a top priority and favor increased development of U.S. resources.  The survey comes on the heels of President Bush’s decision to lift the executive order banning coastal E&P. The Congress would have to act and repeal the moratorium signed into law by President Reagan in 1982.

“This latest survey shows that many people still lack an understanding of the issues that shape our business and should inform public policy debates,” Cavaney says.  “Our industry remains committed to an ongoing dialogue on these issues, and while we still have work to do, we are seeing progress in both attitudes and knowledge.  This is a critical time in the national conversation around energy. We must work together with elected officials to increase public understanding and enact policies that ensure a reliable, sustainable energy future.”

API commissioned the online research by Harris Interactive of 1,528 U.S. adults between June 3 and June 12, 2008. Among the survey’s key findings:

While a majority of those surveyed understand the U.S. will need more energy in future decades, they underestimate the vital role that fossil fuels will play in meeting that demand while overestimating the impact of renewable sources. 

o        When asked how much more energy the U.S. will need in the next 20 years, 53% of respondents answered correctly that we will need between 16% and 20% more energy.

--While the International Energy Agency projects that more than 80% of global energy demands in 2030 will be met by fossil fuels such as oil, gas and coal, only 12% of respondents chose this answer.  The majority believed it would be 60% or less.

--While the U.S. Energy Information Administration projects that 55% of U.S. energy demand will be met by oil and gas in 2030, only 16% of respondents chose this answer.  The majority thought it was less than 45%.

--On the other hand, while the EIA projects that less than 10% of U.S. energy use will be supplied by renewable sources in 2030, only one in 10 respondents chose this answer.  One in three respondents thought renewable sources would account for more than 20% of all energy – more than double government projections.  

The majority of people are not aware that current policies restrict access to 85% of U.S. offshore areas in the Lower 48 states, and they underestimate the amount of oil and natural gas produced in North America.

--At a time when national surveys find broad public support for increased offshore drilling, only 17% of respondents understand just how restrictive current U.S. policies are.  Still, this is up 6% from last year’s survey.

--Only 8% of respondents knew that more than 45% of the oil and natural gas the U.S. consumed in 2007 was produced in North America; the majority thought it was less than 30%.  JAS