New York (Platts)--19Jul2007

The US needs oil and natural gas to bridge the gap between current energy
needs and future, alternative solutions, ConocoPhillips CEO Jim Mulva said
Thursday.

     "The reality is that meeting tomorrow's demand will require the continued
use of the resources that meet our needs today," Mulva, who is also
ConocoPhillips' chairman and president, said in a Washington speech to the US
Chamber of Commerce made available by the company. "These are oil and natural
gas, coal and nuclear -- with initially small but growing contributions from
unconventional and renewable sources, like wind, biofuels, solar and others --
some of which may not have been invented yet."

     Mulva called for opening more areas of the US to drilling, adding that
off-limit reserves were estimated at 80 billion recoverable boe. "The critics
always claim that since one area or another only offers a few months or years
of supply, it should not be developed," Mulva said. "My response is, why
transfer $4.4 trillion in potential national wealth, the market value of these
resources, to other countries through imports? We could instead keep that
money at home and gainfully employ thousands of Americans."

     Mulva also said the US government should encourage the development of
alternative energy sources by providing "energy-price insurance that enables
developers to bear the risk of starting up new ventures" (story  1801 GMT).

     The federal government should also set uniform national fuel
requirements, rather than allowing states to mandate localized boutique
gasoline blends, Mulva said. "These boutiques raise gasoline prices for
consumers," he said. " Another problem is that if a refinery that makes a
boutique blend goes down, we may not be able to ship in blends from other
areas. This causes shortages and price spikes."

     Mulva cautioned against government mandates for the use of biofuels above
the Senate's proposal for 15 billion gal/year, citing what he said was the
need for better technology and infrastructure. And because greater ethanol
production would significantly raise food prices, he said, corn-based ethanol
might be better viewed as a bridge to cellulosic ethanol, and other
second-generation biofuels, and not as a long-term solution.

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