Survey Shows Energy Executives Think US Can Be Energy Independent by 2030

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1st July 2014 13:44 - Utilities

Almost three quarters (73%) of senior energy executives believe the US can achieve energy independence by 2030 or sooner, according to a recent KPMG survey.

The poll, which surveyed more than 100 executives representing global energy companies, studied the executives’ thoughts on growth, pricing outlook and barriers to growth.

Of the almost three quarters who thought the US could achieve energy independence within 15 years, just under one fifth (17%) thought the US could meet its current energy demand using only domestic sources by 2020.

Almost two fifths (37%) thought development of energy transportation infrastructure, such as pipelines and transmission lines, were the most important call of action in order to attain energy independence. Just under one quarter (23%) said greater use of renewable energy sources are required, while 20% believed greater use of alternative fuels for transportation, such as natural gas, electricity and biodiesel, need to be used.

More than half of those surveyed said they would focus on driving accelerated growth in the next three to five years. To implement this, 54% cited dedicated leadership focused on executing hyper-growth plans, just under half (48%) said they would set out strategic planning processes and 46% said they would allocate significant funds to mergers and acquisitions.

When asked where they planned to increase their spending most over the next year, nearly one third (30%) of the energy executives polled said business model transformation, followed closely by employee compensation and training (29%). Other areas included expanding facilities (25%) and geographic expansion within the US (25%).

The energy executives questioned were confident that oil and gas prices will remain stable for 2014. Of the 100 interviewees, one quarter thought the average price of natural gas would fall between $3.00-$3.75, with almost half (46%) estimating a price drop in the range of $3.76-$4.50.

In terms of business model threats, two fifths (40%) feared energy prices would hinder their plans, with regulatory environment (31%), impact of new regulations/legislation (32%) and cyber-threats (23%) also quoted.

Energy prices (38%), increased taxation (34%) and regulatory and legislative pressures (29%) were seen as the top growth barriers for companies over the next year.

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