Chevron CEO sees current oil prices 'moderating' demand growth

London (Platts)--20Sep2005

Chevron chief executive David O'Reilly said Tuesday that current crude
prices about $65/bbl are curbing growth in demand for oil, and urged increased
investment to expand production and refining capacity.
     "Current prices, for instance, are moderating demand growth and will
bring about increased emphasis on conservation," O'Reilly said in a speech at
an oil conference in London. "It is clear to me the market signals are there
today...that more investment is needed."
     Asked whether OPEC should raise output at its meeting in Vienna Tuesday,
he said; "I'm less concerned about the short term oil supply. Today, there is
crude oil in the market. The issues is getting the refining system up and
running."
     Hurricane Katrina, which blasted through the southern US Aug 29, shut
down virtually all of the US's 1.5-mil b/d of Gulf of Mexico crude production
was shut in and about 2-mil b/d of refining capacity put out of action.

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