The expansion of drilling programs in the U.S., as well as fracking has environmental issues that need to be addressed
NEW YORK--(BUSINESS WIRE)--NEW YORK--(BUSINESS WIRE)--Middle market energy executives are bullish on the prospects of U.S. energy independence with 70% believing it could occur within the next 15 years, according to Mike Lorusso, Group Head of CIT Energy (cit.com/energy). This is one of the findings detailed in the second of a two-part video series in CIT’s Executive Insights (cit.com/executiveinsights) based on CIT’s study, “2012 U.S. Energy Sector Outlook” (cit.com/energyoutlook).
According to Lorusso, a combination of factors can help the U.S. achieve energy independence, including, “Increased production of our gas resources, further developing our oil resources and the development of clean technologies to better utilize our existing resources, such as coal, and developing better energy efficiencies.”
Renewables in the Mix
Although study participants are primarily from the oil and gas industries, they generally show support for renewable energies as part of the U.S. energy mix. “However, nearly 20 percent believe that subsidies for renewables are a poor use of limited resources,” says Lorusso. “Instead, they should be directed to research and development companies as opposed to established developers.”
Concerns About Fracking
Middle market energy executives believe that one of the biggest impediments to developing the natural resources of the U.S. is opposition to drilling, as well as environmental concerns. “The expansion of drilling programs in the U.S., as well as fracking has environmental issues that need to be addressed,” says Lorusso. “If we don’t do this adequately, it could severely limit and inhibit our ability to increase our resources.”
“Two-thirds of participants believe that regulations are a major issue facing the industry within the next five years,” says Lorusso. In fact, a sizable minority of energy executives, 40 percent, favor the abolishment of the Department of Energy.
EDITOR’S NOTE: To download a free copy of the complete study, visit: cit.com/energyoutlook. In addition, individuals can download a free copy of CIT’s Executive Spotlight with Mike Lorusso, in which he provides an overview of the U.S. energy sector, at cit.com/energyspotlight.
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About the Study
Survey respondents included 107 energy industry executives. A hundred and one executives came from companies with revenues from $10 million to $1 billion. Six executives came from companies with revenues that ranged from $1 billion to $5 billion.
Founded in 1908, CIT (NYSE: CIT) is a bank holding company with more than $34 billion in financing and leasing assets. A member of the Fortune 500, it provides financing and leasing capital to its more than one million small business and middle market clients and their customers across more than 30 industries. CIT maintains leadership positions in small business and middle market lending, factoring, retail finance, aerospace, equipment and rail leasing, and global vendor finance. CIT also operates CIT Bank,BankOnCIT.com, its primary bank subsidiary and an FDIC-insured online bank which offers a suite of savings options designed to help customers achieve a range of financial goals. cit.com