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."
Though a majority of participants expect renewable energy to be the wave of the future, they are aware that this is not a quick fix. Some 60% say renewable energy sources will not become a mass-produced reality by 2010. They add that ethanol is the most viable renewable source, followed by biodiesel and cellulosic ethanol.
Some 60% believe the problem of declining reserves is irreversible. They also believe individuals, including themselves, can take steps to alleviate the problem. One-third of the participants said they would consider a car that consumes less gasoline for their next car purchase.
And, while global warming may be a hot-button issue in Hollywood these days, 65% of participants believe it is occurring, but they believe it is part of a natural weather cycle. Another 11% believe it is not occurring.
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