End of an era for coal and oil as renewables are about to be king renewable energy will be king

Published on 29/04/2011 16:24

RENEWABLES will overtake oil, gas and coal as the world's main energy source by 2025, according to a new survey of operators.

The annual Maxwell Drummond International Energy Survey 2011 was led by global consultancy Maxwell Drummond, which has its HQ in London and offices in Aberdeen, Calgary, Houston, Johannesburg, Perth and Sydney.

The survey is based on responses from business leaders in major oil and gas operators and contractors in Europe, US, Canada, Asia, Africa, Australasia and the Middle East.

Kevin Davidson, chief executive of Maxwell Drummond International, said the results are "illuminating".

He said: "This was a short, sharp, swift piece of qualitative research to gain a deep insight into the industry from the perspective of its global leaders.

"We explored a wide spectrum of issues from the evolving energy mix to recession impacts, from financial and operational strategies, to people management and skill development.

"In contrast to last year's survey, alternative energy is now at the forefront of energy business leaders' minds as an increasingly valuable source."

Mr Davidson said in 2010, oil or gas was expected to be the most substantial contributor to the energy mix in the next five, ten and 15 years. However this year more than 90 per cent of respondents believed that by 2025, renewables will be the most substantial energy source."

In all, 90.3 per cent of those who took part in the survey expect demand for oil and gas from emerging economies to dominate industry debate in 2011. The perception of Latin America as a global exploration and production hub in the next ten years increased from 38 per cent in 2010 to 79 per cent in 2011.

Also, 70.2 per cent foresee Australasia as an exploration and production-focused area in the next ten years - up from 22 per cent in 2010 - and 80 per cent believe Antarctica will be a key region by 2025.

Renewables have become an issue in the Holyrood elections with the SNP promising to secure jobs and long-term growth in the sector as part of its commitment to generate 100 per cent of Scotland's electricity demand from renewables by 2020.

Seven companies signed an open letter backing the target but some business leaders said the timescale was unrealistic.

Broadcaster and hillwalker Cameron McNeish said that while he supported renewables, the proliferation of wind farms could harm tourism.

Yesterday Niall Stuart, chief executive of Scottish Renewables, said the new survey is a clear indication of the necessity of making renewables an ever increasing part of our energy mix.

"In Scotland we have a wealth of experience in the oil and gas industry and already we are seeing companies diversify into renewables. And the renewables industry will continue to look to major oil and gas operators for the necessary skills required to meet the demands of growing the renewables industry, especially in areas including health and safety and in deployment of large scale projects such as offshore wind farms."