As basins continue to mature around the U.S. and reserves continue to decline, many believe it is naïve to continue to count on technology alone to save the country from running out of fossil fuels. That's where renewable energy comes in. In an April survey by KPMG LLP that polled 553 financial executives from oil and gas companies, respondents said "government involvement in supporting the development of renewable energy sources is necessary to alleviate the problem of declining oil reserves." Declining oil reserves is a top concern for 82% of those surveyed. Some 44% said that at least 50% of government energy funding should be allocated to the renewable-sources sector, while 25% support directing 75% of this spending to renewables. "These executives are deeply concerned about declining oil reserves, a situation they see as irreversible and worsening," says Bill Kimble, national line of business leader, industrial markets, for KPMG. "They see renewable energy sources as a lifeline but our survey shows that the executives 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." For more on this, see the June issue of Oil and Gas Investor. For a subscription, call 713-260-6441.
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