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U.S. Energy Independence? Get Real, Oil Execs Say in Survey

By Edward Klump

May 4 (Bloomberg) -- Most oil-industry executives scoff at the idea that the U.S. can wean itself off foreign crude in the next couple of decades, a survey showed.

Only 16 percent of oil and natural-gas executives said that by 2030 the U.S. will be able to depend solely on its own energy supplies, according to a survey by KPMG LLP’s Global Energy Institute. A majority said it will be after 2015 before it’s “viable” to mass-produce alternative energy.

“The executives’ perceptions of energy independence mirror their views on the viability of alternatives in the near-term,” Bill Kimble, executive director of the institute, said in a statement. KPMG surveyed 382 U.S. financial executives in the oil and gas business last month.

Net imports of petroleum into the U.S. were about 57 percent of the total consumed last year, and that will fall to about 40 percent by 2030, according to the U.S. Energy Information Administration.

The U.S. government has said it wants to reduce its dependence on imports. In January 2006, then-President George W. Bush said, “America is addicted to oil, which is often imported from unstable parts of the world.” Later that year, he said, “We’re going to have to get off oil as much as possible to remain a competitive economy.”

Under President Barack Obama, 35 percent of those surveyed view wind energy as the biggest winner among energy sources.

Global-Warming Skeptics

The executives viewed fossil fuels as the biggest losers under President Obama, with 42 percent selecting coal and 36 percent choosing oil.

On the issue of global warming, 47 percent of respondents said they agreed with the statement that “global warming, if it is occurring, is a natural weather cycle.” Last year, 62 percent said they agreed.

Regarding the issue of restricting the carbon emissions that scientists say are linked to the gradual warming of the earth’s atmosphere, 18 percent said they would support a cap- and-trade system, and 23 percent backed a carbon tax.

On capital spending, 65 percent of those surveyed expect reductions at their companies, KPMG said. That includes 47 percent who see a decline of more than 10 percent. Seventeen percent see an increase over last year’s spending, according to the survey. A year earlier, 70 percent of respondents expected a boost in capital spending.

Sixty-three percent of those surveyed think ending deductions on so-called intangible drilling costs and depletion would lead to increased drilling outside the U.S. and some unconventional wells not being drilled, KPMG said.

To contact the reporter on this story: Edward Klump in Houston at eklump@bloomberg.net.

Last Updated: May 4, 2009 00:00 EDT