ChevronTexaco CEO Says Era of Cheap Oil Ending

HOUSTON – Roaring demand for energy from Asia coupled with difficulties in accessing oil reserves has resulted in a new energy equation where the days of cheap oil and even cheaper natural gas are numbered, the head of ChevronTexaco Corp. said on Tuesday.

Oil prices have shot up dramatically in the past year thanks to tight supplies and rising demand, prompting a growing crowd within the energy industry to ponder whether sky-high oil prices are here to stay.

“The time when we could count on cheap oil and even cheaper natural gas is clearly ending,” Dave O’Reilly, chief executive of ChevronTexaco, told a Cambridge Energy Research Associates energy conference.

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