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ConocoPhillips CEO: Oil Output Will Struggle To Hit 100 Million B/D



LONDON -(Dow Jones)- Oil producers will struggle to raise global production to 100 million barrels a day in the long term, ConocoPhillips (COP) Chief Executive James Mulva said Tuesday.

Speaking at the Oil & Money conference in London, Mulva said future oil demand would be constrained by limited supply, because companies don't have sufficient access to areas where reserves are concentrated.

In the medium term, Mulva said he expected natural gas prices - which have contracted sharply amid the recession - to rebound when economic activity recovers. Industrial demand for gas-fired power generation would pick up during an economic rebound, he added.

"We've really got to make natural gas a much stronger part... of the energy equation," because it is a clean fuel that is less carbon-intensive than coal and crude oil, Mulva told reporters.

Ahead of a global climate summit in Copenhagen in December, Mulva called for a transparent price of carbon. He said companies were facing uncertainty over the costs and investments associated with climate change targets.

-By Lananh Nguyen, Dow Jones Newswires; +44 (0)20-7842-9479; lananh.nguyen@ dowjones.com


  (END) Dow Jones Newswires
  10-20-091050ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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