With the recent US elections just ended, it's worth noting the conclusions of a recent national poll by the University of Texas on vital energy issues. The results point to significant generational differences in attitudes toward energy policies and government regulation that could be a factor in future elections.
Nearly half of the 2,105 US residents surveyed (46%) in the latest UT Energy Poll say that candidates' views on energy issues heavily influence their choices at the ballot box. As you might expect, the poll, which was conducted Sept. 4-16, shows widely contrasting views and preferences among consumers in various geographic areas on topics such as energy policy, preferred sources of energy, and financial support for energy by the federal government.
The poll found differing views among a number of demographic variables, including gender and political affiliation. However, the most pronounced differences related to the age of survey respondents.
For example, 41% of those polled under the age of 35 said the US should permit the export of natural gas to other countries, while just 22% of those age 65 and older support gas exports. That is potentially good news for those in the natural gas industry who would like to see LNG exports expand. Time is on their side.
"Consumer perspectives on energy issues continue to track political party lines, but we're seeing a widening gulf among older and younger voters," said Sheril Kirshenbaum, director of the UT Energy Poll.
The generational divide surfaces in several areas, most notably in how the different age groups see the importance of environmental protection and in their support for renewable forms of energy:
- The polls shows that 56% of younger consumers say they are willing to pay much higher prices to protect the environment, compared with only 20% of respondents age 65 and older.
- About 68% of survey respondents under age 35 say they would be more likely to vote for candidates who support steps to reduce carbon emissions, compared with 50% of those age 65 and older.
- Support for renewable sources of energy is considerably stronger among younger consumers, with nearly two out of three (65%) favoring an expansion of financial incentives for companies engaged in renewable technologies. Less than half of older respondents (48%) say they would support candidates who endorse such incentives. Similarly, 62% of younger respondents favor requiring energy utilities to obtain a percentage of their electricity from renewable sources, versus 48% of older voters.
- Younger consumers also strongly support subsidies for renewable energy, with 72% saying they back federal government support, compared with 58% of Americans age 65 and older.
- Approximately 52% of respondents 65 and older say they are familiar with hydraulic fracturing for fossil fuel extraction, compared with 39% of younger Americans. Among those familiar with the term, only 37% of younger survey respondents support its use, compared with more than half (52%) of Americans age 65 and older. Since those more familiar with fracking are more inclined to support its use, it might be wise for industry organizations to do more to educate voters and consumers.
This was the seventh such energy poll by the folks at UT. It was initially launched in October 2011 with the intent of providing an objective look at consumer attitudes and perspectives on key energy issues. The poll is designed to help inform national discussion, business planning, and policy development.
Energy is an ever-growing segment of the global economy, so it helps to have an electorate that is informed when issues such as LNG exports, crude oil exports, and hydraulic fracturing are put before the public. Living in a representative democracy such as the United States, it's imperative that voters have the knowledge and information they need to make decisions that are right for the country.
For example, recent increases in US crude oil production have sparked discussions on the topic of how increasing production volumes will be absorbed. Given the likelihood of continued growth in domestic crude oil production, there are two basic ways to deal with this expansion:
- Use it domestically as a like-for-like replacement for import streams, which are inherently limited; or
- Relax current limits on crude exports by allowing greater exports of crude oil and well as refined products. This would obviously have a greater impact on global energy markets and would be a subject of great interest for policymakers, industry, and the public.
The US Energy Information Administration is currently undertaking an analysis examining issues related to reducing or eliminating current limits on crude oil exports. A change in these limitations could have implications for both domestic and international crude oil prices. The EIA says that to an extent current limitations on exports cause domestic crudes to sell at lower prices that could occur if the limitations were relaxed and that a relaxation of limits could raise the price of domestically produced oil in the US. Increased production might raise the global crude oil supply, thus reducing the global price of oil. However, Americans are mainly concerned with the price of gasoline and want assurance that increased crude oil exports will not reduce domestic supply and cause gasoline prices to spike in the US.
These are the kinds of issues that need to be studied and decided by an informed public.