The results of this year’s survey, which polled 550 financial executives from energy companies during April 2011, also show that executives have a positive outlook on Research & Development (R&D) investment, capital spending and hiring. In fact, 35 percent of executives surveyed said their company would increase R&D investment in alternative energy projects in 2011, up considerably from 15 percent in KPMG’s 2010 survey.
“These execs are saying that we may not have seen peak levels on crude, facing underlying issues such as regulation, geopolitical concerns and supply disruptions as well as escalating energy demand,” said John Kunasek, national leader of KPMG’s US Energy practice. “But the good news is that they are significantly increasing investment in a range of alternative energy sources and see shale factoring strongly into meeting the world’s future energy needs.”
“Executive expectations for capital spending and hiring are both very positive indicators for the energy industry,” said Regina Mayor, sector leader for KPMG’s Oil and Gas practice. “After several years of lower investment, companies appear focused on transformation and innovation, despite the significant regulatory and economic risk factors they are challenged with.”
This survey report provides quantitative findings on executives’ outlook on oil prices, industry challenges, the impact of shale oil and gas, R&D investment in alternative energy, clean energy sources, capital spending, Mergers & Acquisitions (M&A), the global workforce and operating costs. Further commentary by John Kunasek and Regina Mayor is also included.