BP chief calls for production increase
 13 Jun 2008
The head of British Petroleum (BP) claims that the world is not suffering a shortage of oil and areas such as the Arctic and the US coastline should be explored as potential new sources of fuel.
Tony Hayward, BP chief executive, suggests that rising energy demand can be met by opening up new oil fields and developing other forms of energy.
Launching BP's annual statistical review of world energy, Mr Hayward stated: "Declining oil production in the OECD highlights the fact that, while resources are not constrained globally, the resources within reach of private investment by companies like BP are limited."
He added that the problems with producing more oil are "not geological, but political", with barriers to entry, political factors and high taxes all playing a role in curbing supply.
World leaders are urging oil producers' cartel Opec to increase production in order to ease global oil price inflation, which is placing pressure on national economies, businesses and consumers.
Oil prices have more than doubled over the past year and reached a record high on Friday of more than $139 (£71.39) a barrel, rising by $11 in a single day. Prices have been forced up by speculation by investors, supply concerns, rising demand in developing nations and a weak US dollar.
Addressing the European Policy Centre, Peter Sutherland, BP chairman, dismissed claims by Alexei Miller, deputy chairman of Russia's Gazprom, that oil prices could reach $250 per barrel, describing the forecast as "apocalyptic".
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