High Crude Prices 'Not Our Friend'
Posted on: Saturday, 17 May 2008, 09:00 CDT
By Jason Womack, Tulsa World, Okla.
May 17--BARTLESVILLE -- Jim Mulva, chairman and CEO of ConocoPhillips, said Friday that rising oil prices have created turmoil in the energy industry.
"High oil prices are not our friend," he said. "It has led to a real severe cost escalation."
During an annual trip to Bartlesville, the executive told members of the Bartlesville Regional Chamber of Commerce, ConocoPhillips employees and other members of the community that record high oil prices have driven up costs for the company, increased scrutiny of the industry and had a negative impact on consumers.
Crude oil prices have been pushed higher by a weak U.S. dollar and speculation in commodities, Mulva said. He added that the rising worldwide appetite for fuel has also caused prices to increase, even as U.S. demand for oil slips.
Mulva said he has never been good at forecasting prices.
"I thought oil prices would be between $85 and $95 per barrel" at this time, he said.
Mulva said the country needs to start using energy more efficiently, promote conservation, explore alternative sources and diversify its sources of imports. He also called for fewer restrictions on exploration and production in the U.S., which would
spur development of the country's oil and gas resources.
"We have got to take the restraints off," he said.
ConocoPhillips invests heavily in technology, Mulva said. It is upgrading its refineries to handle low-quality crude oil and exploring alternative energy solutions.
Mulva contended that companies such as ConocoPhillips can meet the nation's energy needs.
"We are the industry that is best suited for solving our industry challenges," he said.
ConocoPhillips employs more than 3,000 people in Bartlesville.
Jason Womack 581-8380 jason.womack@tulsaworld.com
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Source: Tulsa World
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