12 February 2008 21:19 [Source: ICIS news]
HOUSTON (ICIS news)--Technology, investment, free trade and teamwork are key ingredients needed meet the global oil supply challenge, industry executives said on Tuesday.
Albers said US Geological Survey (USGS) data indicates there is about 3,000bn bbl of oil remain untapped worldwide, a 1,000bn increase from estimates 20 years ago.
“Technology is the lifeblood of this industry when it comes to being able to locate these reserves and improve refinery rates and capacity,” Albers said.
Albers also said that working with state-owned and non-state-owned companies in a free market was crucial to meeting the supply challenge.
“Resource nationalism slows investors and builds walls,” Albers said.
State-owned companies would benefit from foreign investments, he said.
“An oil crisis is coming in the next 10 years,” warned Hess Corporation Chairman and CEO John Hess, but added that the situation could be avoided with the conservation of natural resources and moderating demand.
The development of hydrogen cell vehicles and more efficient transportation could also be used to avoid an oil crisis, Hess said.
Hess said more than 50% of oil demand is for automobiles and cited a Goldman Sachs forecast that stated oil demand for vehicles will reach 500m bbl/day in
“Hydrogen cell vehicles need to be a reality,” Hess said.
StatoilHydro ASA President and CEO Helge Lund said in addition to current production rates from the Norwegian Continental Shelf (NCS), his company believes there is still growth potential for 3m bbl/day for the next 10 years. However, in order to meet supply needs, he said his company will have to grow outside of the NCS.
The conference runs through Friday.
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