Oil may lose rank as cheapest energy

Thursday, December 11, 2008

From an Associated Press article by posted in The Daily Reporter:

The Woodlands, TX (AP) — Over the next 20 years or so, oil and natural gas will lose top ranking as the world's most affordable energy sources, according to a survey of energy executives released Wednesday.

Deeper wells in more inhospitable places, both political and geological, have altered presumptions of doing business in the oil patch.

Nearly three out of four executives and managers of 52 surveyed last month by Deloitte LLP said oil and gas are the cheapest available energy sources for now, though only 23 percent believe that will be the case in 25 years.

The sampling revealed a growing concern about the sustainability of oil and natural gas in the coming years.

"Clearly, the oil and gas professionals involved in our survey are starting to think about the nation's transition to renewable energy and other alternative fuels," said Gary Adams, vice chairman of Deloitte's oil and gas practice.