[frankthetank]

and why there saying it:

$this->bbcode_second_pass_quote('', 'I')n spite of the sharp rise in crude prices over the past four years, large oil companies still decide on their projects based on in an oil price of $20 to $25 a barrel and are returning cash to shareholders rather than investing.

[Tanada]

$this->bbcode_second_pass_quote('', 'B')P and ExxonMobil, the two biggest listed oil groups, say that when making investments that may last for 25 years they will assume only a $20 per barrel. Exxon has lifted its spending range from $14bn-$15bn to $15bn-$16bn this year, but much of the extra money will go to its chemicals business. BP is keeping spending at about $14bn. Both companies, which insist they have plenty of investment opportunities even when using tighter guidelines, give shareholders most of the extra profits from high oil prices. Exxon bought back almost $10bn of its shares last year and BP returned $7.5bn, plus $2bn in the first three months of 2005.

With predicted production trailing forecasts, the IEA has focused on energy efficiency.

Energy ministers from the 26 member nations of the International Energy Agency also called for more action to curb demand and diversify energy supply, voicing concern over the effects of high oil prices.