Public underestimates oil, gas role in energy future, survey finds

Although Americans recognize that the United States will need more energy in coming years, they continue to underestimate the amount of oil and gas which government experts say will be needed to meet that demand, a survey commissioned by the American Petroleum Institute found.

Conversely, respondents in API’s third annual Energy IQ survey which Harris Interactive conducted for the oil and gas industry association, overestimated renewable energy sources’ contribution to meeting future energy demand, the amount of oil the United States imports from the Middle East, and oil and gas industry earnings, API said on June 29.

“The American public wants to believe there is a silver bullet answer to our energy challenges despite what government experts predict,” said Jim Hoskins, a Harris Interactive senior vice president. “Americans have become more aware of how current policies limit increased domestic production, but they also continue to subscribe to common, yet critical, misperceptions about how the industry operates and the energy we’ll need to meet growing demand.”

API said that it commissioned the online research of 1,298 US adults between April 30 and May 8, and compared results with responses from the two previous years. It said that while the US Energy Information Administration projects that domestic energy demand will increase 9% in the next 20 years, most respondents said that they thought demand would climb 16-21%. Only 5% chose the correct answer, API said.

The survey found that when asked what percentage of global energy demand would be met by oil, gas, coal, and other fossil fuels, only 10% responded correctly that it would be 85%. API said that this was the second consecutive year the number has dropped, even though EIA’s number for reliance on fossil fuels has risen by 5% since 2008.

Similarly, it continued, while EIA projects that more than 55% of energy demand in 2030 will be by oil and gas, only 16% of the survey’s respondents gave the same answer.

Other misconceptions

Respondents generally overestimated the amount of US oil and gas imports from Persian Gulf producers, according to API. It noted that the US Department of Energy has said that 12% of the oil consumed in the United States in 2008 came from that region, and that 7% of the survey’s respondents chose that number. “More than 40% of respondents believed that over 30% of our oil supply comes from the Persian Gulf,” it said.

API said that 53% of the survey’s respondents said that they believed Saudi Arabian is the United States’ biggest foreign oil supplier when, in fact, Canada is, according to DOE.

“Only 5% of respondents knew that more than 73% of oil and gas consumed in the US was produced in North America. This is down 3% from last year’s survey,” said API. “A surprising 42% were under the misconception that the answer was less than 35%.”

It said that the survey’s responses also indicate that the public underestimates the oil and gas contributions to the US economy through jobs and taxes, while overstating the industry’s profits.

“Only 15% of respondents knew that 6 million Americans are employed directly or indirectly by the oil and gas industry,” API said. “Only 9% of respondents knew that oil companies pay more than 40% in income taxes as a share of their income. The majority thought that it was less than 30%, with one-third of all respondents under the misconception that companies pay less than 15% in income taxes.”

It said that the complete survey and more information are available online at www.energytomorrow.org/energyiq.

Contact Nick Snow at nicks@pennwell.com  

Related Articles

West Cornwall Township hears from Sunoco Logistics

12/12/2014

Sunoco Logistics Partners outlined its safety systems during a West Cornwall Township meeting in Pennsylvania on Nov. 10.

ETP eyes larger capacity for planned Bakken pipe

12/12/2014 Energy Transfer Partners LP has launched a binding expansion open season to boost capacity on a planned pipeline system that would move oil from th...

Kinder Morgan to deliver natural gas to Corpus Christi Liquefaction

12/11/2014 Kinder Morgan Inc. (KMI) companies Kinder Morgan Texas Pipeline, Kinder Morgan Tejas Pipeline, and Tennessee Gas Pipeline Co. (TGP) have entered in...

Rosneft, Essar sign terms of oil supply agreement

12/11/2014 OAO Rosneft and Essar Energy PLC have signed key terms of an oil supply agreement in New Delhi. Rosneft said shipments to India may begin in 2015.

Barton introduces bill to remove US crude export limits

12/11/2014

US Rep. Joe Barton (R-Tex.) introduced legislation that would remove US crude oil export limits that have been in place for nearly 40 years.

BG agrees to sale of Australian gas pipeline to APA Group

12/10/2014

BG Group PLC agreed to sell its wholly owned subsidiary Queensland Curtis LNG Pipeline Pty. Ltd. (QCLNG) to APA Group for about $5 billion.

More West Texas gathering, processing to come onstream

12/09/2014 EagleClaw Midstream Services LLC, Midland, Tex., has bought natural gas gathering and processing in Reeves County, Tex. The company declined to ide...

Methane controls just part of complete climate strategy, speakers say

12/08/2014 Reducing oil and gas operations’ methane emissions is an essential, but far from the only, part of a comprehensive climate strategy, speakers at a ...

Rail tank car rule could cost economy billions, report says

12/08/2014 The US Pipeline and Hazardous Materials Safety Administration's (PHMSA) proposed rail tank car rule could cost the US economy as much as $60 billio...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected