Washington (Platts)--19Nov2008

US Secretary of Energy Samuel Bodman said Wednesday that he expects
continued price volatility in global oil markets for years to come.

"I think the likelihood is that we're going to see a lot of volatility
over time," he told reporters in Washington. "The reason that it's down is
likely that we have economic problems in the world and therefore, there's a
dampening demand and therefore there is an issue about price."

NYMEX December crude futures Wednesday opened 76 cents lower at
$53.63/barrel. Subsequently, after the Energy Information Administration
released weekly oil statistics showing a 1.6 million-barrel build on
commercial crude stocks, the NYMEX contract fell to $54.27/barrel at 1545 GMT,
down 66 cents from pre-release levels and 12 cents lower than Tuesday's
settle.

Bodman said that currently lower oil prices should not diminish the need
for comprehensive energy legislation in the US or the need to develop more
domestic, renewable energy sources. "I would like to believe that it would
not," he said. "I do not believe that we should see any, or will see any,
decline in effort in the renewable energy area."

He added that industry and consumers continue to be hurt by oil prices.
"$55/b oil continues to be expensive," he said.

When asked about the possibility of OPEC cutting production as demand
drops, he had no comment. "With oil prices being down, I have turned my
attention to other matters," he said. He also would not comment on whether or
not the US Strategic Petroleum Reserve should be filled at current oil prices.

--Alexander Duncan, alexander_duncan@platts.com