Saudi Oil Minister Ali Naimi speaks during the 9th Oil Summit in Paris, Thursday, April 10, 2008. Michel Euler / AP
Time Magazine: OPEC: Gas Prices Will Stay High
Friday, Apr. 11, 2008 By VIVIENNE WALT/PARIS
As gas prices heads for a possible $4 a gallon in the U.S. this summer, it’s tempting to blame Big Oil — as many in Congress did last week —for its bloated profits greased by generous tax breaks. But the players in the oil-producing world see things a little differently. OPEC officials, oil executives and oil-rich governments met Thursday in Paris at the International Oil Summit, to share their thoughts on the global energy crunch. Total chief executive Christophe de Margerie and Royal Dutch Shell’s exploration chief Malcolm Brinded told officials from oil-rich countries that they needed more access to easily accessible oil deposits, rather than the hugely expensive deep-sea drilling or ultra-deep underground reserves on which they are increasingly relying to expand production. Expanded drilling for less accessible oil has seen production costs double in about four years, according to a report by Cambridge Energy Research Associates. Added Brinded, “Costs are still rising and exploration is at record levels.”