Oil Industry Reputation Hit by Gulf Oil Spill
|June 29th, 2010||
|Contributed by: OilPrice.com|
|The Gulf oil spill has hit the reputation not only of BP but of the entire oil industry, including among those who favor increased use of fossil fuels as the main source of energy.|
Research firm Market Strategies International said its E2 Index, which measures consumer perceptions of the energy industry’s economic contribution and environmental performance and credibility, showed the image of the industry has declined 25% in the past six months, from 40 in December to 30 in June.
The spill resulting from the accident at BP’s Deepwater Horizon will play a role in determining oil companies’ business strategies and their marketing messages, he said.
The E2 Index, which is based on a 100-point scale, registered the oil industry at 29 when it was first established in the first quarter of 2008, but had climbed to 40 by last December.
Market Strategies segments respondents into five categories depending on their overall attitudes to energy and the environment. The “Carbon is King” segment, which is the only category to favor increased reliance on fossil fuels, registered a drop from 59 in December to 40 in June in its perception of the oil industry.
The “No Nukes” segment, which had the second-highest rating for the oil industry in December at 40, also showed a big percentage drop, registering 25 in June.
The other three segments also showed a decline. “Ultra Green” – respondents who strongly favor renewable energy and conservation -- declined from 16 to 13. “Anything Clean” – who support all clean energy options, including nuclear and clean coal – dropped from 32 to 28. “Atomic Efficiency” – who favor nuclear power as a clean energy solution – declined from 33 to 28.