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Total issues oil shortage warning

2009-09-21 07:39:07

The head of oil giant Total has told the BBC the world could face a shortage of

oil because of underinvestment.

Chief executive Christophe de Margerie warned that too little has been spent

trying to tap into new oil reserves because of the economic crisis.

"If we don't move [now] there will be a problem," Mr de Margerie said. "In two

or three years it will be too late."

He also said he thought oil prices would rise to more than $100 a barrel, from

their current level of around $70.

"The reserves of oil are there, but if you don't invest they don't come on the

market," Mr de Margerie said.

"What we have to decide today is production for 2010-2015. So in between we

might be faced with insufficient oil to meet demand."

He said the major oil producing countries, which have cut production in the

face of falling demand and to protect prices, could not be blamed for the

underinvestment.

"You cannot ask those countries who are also facing a crisis to continue to

invest for a potential recovery of demand, and to do this for the benefit of

the world."

Instead, he called on heads of government to get involved.

"I think it is our role to... force people in charge of our countries to think

about this concern we have."