Oil price volatility boosting alternative energy investments

Interest in alternative energy research and development and investment is on the rise among executives and if oil prices break $121 the hunt for new power sources is likely to spike, according to a KPMG survey.

KMPG's annual energy survey, which polls 550 financial execs from global energy companies, found that 32 percent of respondents think oil prices will peak between $131 and $140 a barrel. Nine percent pegged a range of $141 and $150 and 6 percent cited more than $151. Thirty five percent said they thought oil prices would peak between $111 and $120.

The big question is what increased oil prices, which have been increasingly volatile of late, will mean for future investments. Here's what KPMG's survey reveals:

• 44 percent of execs said shale gas/oil investment would step up and 62 percent said that shale deposits would have a big impact on energy needs. Indeed, the New Yorker recently did a story on how North Dakota's shale deposits could make the state a larger oil producer than Iraq and Kuwait.
• 31 percent of execs argued that solar would get an investment boost followed by wind (25 percent), clean coal (17 percent) and biodiesel (10 percent).
• Chemically stored electricity such as batteries and fuel cells were cited by 8 percent as a likely winner amid high oil prices.

Perhaps the biggest takeaway here is that the energy industry is willing to explore all options, said KPMG.

This post was originally published on Smartplanet.com