08 March 2011 17:50 [Source: ICIS news]
HOUSTON (ICIS)--The ?xml:namespace>
Company CEO John Hess said that the
On 28 February, the
“The Gulf of Mexico is essential to the nation’s energy security,” he said, pointing out that 30% of
“We need to get our offshore drilling industry going again,” he added.
Hess spoke at the CERAWeek 2011 energy conference in
“We just need the political leadership in
On the whole, Hess said global oil producers were not investing enough in production capacity to keep up with rising demand.
“As demand grows in the next decade, we will not have the oil production capacity we will need to meet demand,” he warned.
“Supply will then have to ration demand and prices will skyrocket, with the likely outcome of bringing the world’s economy to its knees,” he continued.
“The $140/bbl oil price of three years ago was not an aberration – it was a warning.”
As such, steps such as increased deepwater drilling are desperately needed to fend off rapid growth in global population and transportation.
Other steps Hess suggested included higher fuel efficiency standards for automobiles and to maintain existing tax provisions to encourage drilling.
Hess said that renewable fuels could be part of the solution, but said that the industry “does not have the scale, timeframe or economics to materially change the outcome as much as we would hope”.
The CERAWeek 2011 conference lasts through Friday.
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