Study: Two-Thirds of Midsize Energy Firms Say Regulations Threaten Future Development

More than one-third of respondents call for an end to the Department of Energy.

Update: Jan. 26, 11:28 a.m. EDT

Mid-market energy industry executives primarily from the oil and gas sector are optimistic about the potential for U.S. energy security but are worried that regulations could jeopardize the availability of those resources, according to a report released Jan. 25 by small and mid-market business lender CIT Group Inc.

Of 107 executives at mid-market energy firms, 70% said they see the potential for U.S. energy independence within 15 years. But 66% of respondents said regulation is a long-term concern facing the industry.

Study participants from the oil and gas industry represented 36% of survey respondents. The renewables industry comprised 16% of participants; 21% identified themselves as energy generation, and another 28% fell into the "other" category.

Regulations have become such an issue for many companies that 40% of executives responding said the Department of Energy should be abolished. Most of the negative sentiments toward the department appeared to be directed at the agency's handling of climate-change and air-quality standards, according to the study.

In another survey question, 88% of respondents said they support hydraulic fracturing as either a safe or developing technology for oil and gas development.

Nearly two-thirds of executives said the industry should educate the public regarding hydraulic-fracturing myths.

Almost one-third of respondents said renewable-energy subsidies are necessary and that "some problems are inevitable."

See also:

Energy Industry has Mixed Reaction to Obama Speech

Industry Groups Ask Obama to Take 'Pro-Manufacturing' Stance in Address

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