Energy Insights

2010 IN REVIEW

Looking back over the past 12 months, the energy industry has been redefined by the worst coal mine explosion in U.S. history and the largest accidental marine oil spill. The Massey coal mine explosion spurred the Obama Administration to challenge coal companies to both change their tactics and voluntarily improve safety or potentially face the mines being shut down. Additionally, for second year in a row, no new construction has begun on a coal fired power plant and many utilities are opting for less expensive, more environmentally friendly natural gas fueled plants. The Deepwater Horizon oil spill in the Gulf of Mexico seriously called into question the safety of deepwater drilling and as such, no new wells are being drilled in the Gulf, although some former operations have commenced drilling. 

Interestingly, while the events of the past year have resulted in increased support for renewable fuel development, in light of the current economy, there is still large support for accessing domestic oil, natural gas, and coal resources. Eight-in-ten (78%) favor legislation that would require utilities produce more energy from wind, solar and other renewables, but seven-in-ten (72%) also favor expanded exploration and development of coal, oil and gas in the U.S., but with stricter regulations on oil drilling (69% favor).

After the oil spill, 48% of the public still favored increasing drilling for oil and gas in coastal areas around the U.S. The reason is that the desire for the U.S. to provide its own sources of energy (52%) currently exceeds the importance the public places on protecting the environment (45%). It is very important to the public to keep gas prices low (69%), reduce dependence on foreign energy sources (69%) and create jobs within the energy sector (64%).

For the time being, the public is supportive of utilizing energy from all sources. However, while the public currently espouses comprehensive energy plan, there is a desire for more renewable energy use. Three-quarters (72%) of the public favor President Obama’s plan to develop alternative sources of energy and reduce the amount of oil and other fossil fuels that are produced and used in the U.S. Additionally, seven-in-ten (69%) believe this proposal will increase jobs in the U.S. and 79% believe it will make life in this country better for the next generation of Americans.

While no energy source seems to be the perfect solution from an economic and environmental perspective, strides are being made to meet energy demand while being more environmentally responsible and this trend will continue in 2011. Each month StrategyOne will send out an energy update featuring a specific energy source or issue to keep you up-to-date on public sentiment surrounding the energy industry.