The results from a recent survey, released by financial holding company CIT Group Inc. (NYSE: CIT), reveal that 81% of U.S.-based middle-market energy industry executives who were surveyed expect the current year’s profitability to follow last year’s, the company said April 1. The positive expectations for this year are actually “nearly identical” to last year’s, the company noted.
About 49% of those surveyed for the 2014 U.S. Energy Outlook said that energy independence is possible in the future, although 65% said current policies are hampering domestic energy development, the company said. Only 23% said current policies favor oil, while 56% said they do not, CIT said. Regarding coal, 79% said that current policies do not favor it, CIT added.
Energy independence is “a fast-evolving reality” according to the study—40% of respondents said that it is possible within the next decade. Key factors for this possibility include expanded natural gas production, significant energy discoveries and approval for infrastructure projects, the company said.
Looking beyond 2014 by three to five years, 91% of executives forecast that those years will be either profitable (53%) or “very profitable” (38%) for the sector, CIT said. Additionally, 23% of that group had an “aggressive” outlook for investment and growth, the company said.
Regarding commodity prices, 57% of executives predicted that over the next 18 months oil prices will rise, the company said, adding that 65% predicted that natural gas prices will rise over the same time period.
Additionally, 40% of respondents, compared to 10%, said fracing is safe, according to the survey.
The February study was jointly conducted by New York-based CIT and Forbes Insights, and surveyed 141 industry executives, CIT said.
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