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

Financing set for gas line in northern Mexico

07/28/2015 Financing is set for construction of a 289-mile pipeline that will carry natural gas produced in Texas to power plants in Mexico, reports Milbank, ...

Canada’s NEB approves Orca LNG export license

07/28/2015 Canada’s National Energy Board has approved an application by Orca LNG Ltd., Cypress, Tex., for a 25-year natural gas export license (OGJ Online, J...

Excelerate gets FERC okay for Aguirre offshore GasPort project

07/27/2015 Excelerate Energy LP, The Woodlands, Tex., has been granted authorization by the US Federal Energy Regulatory Commission, in cooperation with the P...

DOE official: LNG exports could be limited by silt-clogged waterways, ports

07/27/2015 Silt, which is increasingly filling US waterways and ports, potentially could limit US LNG exports if it is not dredged soon, a top US Department o...

OGJ Newsletter

07/27/2015

International news for oil and gas professionals

Cornyn calls for more US energy exports in wake of Iran deal

07/23/2015 US Senate Majority Whip John Cornyn (R-Tex.) said it would be geopolitically, economically, and strategically absurd for the US to maintain outmode...

BC bill advances Pacific Northwest LNG

07/22/2015 The British Columbia legislature has passed a controversial bill enabling the proposed Pacific Northwest LNG export project to advance (OGJ Online,...

Excelerate FSRUs complete LNG transfer at Pakistan terminal

07/22/2015 Excelerate Energy LP, The Woodlands, Tex., reported the completion of the first ship-to-ship (STS) transfer of LNG at the Engro Elengy LNG terminal...

Study looks at gas transmission, storage sites’ methane releases

07/21/2015 A comprehensive study of US natural gas transmission and storage operations found total methane emissions from 2,292 on-site measurements, addition...
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts


Operating a Sustainable Oil & Gas Supply Chain in North America

When Wed, Oct 7, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.

register:WEBCAST


The Resilient Oilfield in the Internet of Things World

When Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.

register:WEBCAST



On Demand

Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors

register:WEBCAST


Driving Growth and Efficiency with Deep Insights into Operational Data

Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

register:WEBCAST


Emerson Micro Motion Videos

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