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Bloomberg: BP Chief Hayward Says `Era of Cheap Energy Is Behind Us’

By Amy Strahan

Nov. 8 (Bloomberg) — Political and technical obstacles to bringing oil to market become “more challenging all the time,” BP Plc Chief Executive Tony Hayward said today.

“Every geopolitical event causes a spike in the price, but these spikes only happen because the underlying market is itself tight,” Hayward said in e-mailed remarks prepared for the Houston Forum, a civic group. “For the medium term, the era of cheap energy is behind us.”

Crude oil futures touched a record $98.62 yesterday, the highest since trading began in 1983 in New York.

Hayward warned against U.S. politicians defining “energy independence” as lessening reliance on foreign oil sources. Such a move would “cause a misallocation of capital towards uncompetitive investments” and greater coal reliance, he said.

BP, Europe’s second-largest oil company, is seeking to boost the company’s oil production to as much as 3.9 million barrels of oil equivalent a day in 2007. Royal Dutch Shell Plc is Europe’s largest oil company.

Hayward succeeded John Browne in May.

To contact the reporter on this story: Amy Strahan in Houston at [email protected] .

Last Updated: November 8, 2007 15:04 EST and its also non-profit sister websites,,,,, and are all owned by John Donovan. There is also a Wikipedia article.

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