ConocoPhillips chief warns of impending oil crisis

Yahoo News 16 Jun 09;

DETROIT (AFP) – Government efforts to curb climate change could soon spur an oil crisis more severe than those already experienced, the head of oil and gas giant ConocoPhillips said Tuesday.

"We're very concerned that if we don't keep the supply up we're going to see another crisis," said chief executive officer Jim Mulva.

Government intervention in the energy market "has an impact" on the willingness of companies to pour billions into the development of new projects, Mulva told an economic summit in Detroit, Michigan.

"If we're not investing in replacing our resources in fossil fuels then we're going to create a bigger challenge soon: higher price spikes and volatility in the cost of our energy than what we've experienced even in the past," he said.

"That's not going to be helpful to the recovery of our economy."

Demand for energy is expected to grow significantly in the coming decades as a result of economic development and a growing global population, and there is no way that demand can be met without the use of oil and gas, he said.