ConocoPhillips CEO Calls for Improved Fuel Efficiency
19 June 2006
Speaking on Sunday’s edition of Meet the Press, James Mulva, the CEO of ConocoPhillips, called for improvements in the fuel-efficiency of vehicles as an important step in resolving the current energy situation.
ConocoPhillips is the third-largest integrated energy company in the United States, based on market capitalization, oil and gas proved reserves and production; and the second-largest refiner in the United States.
Also participating in the interview with Mulva were David O’Reilly, the CEO of Chevron and John Hofmeister, President of Shell Oil Company. The topic of discussion was the price of fuel and the future of energy.
We need to add supply. It’s getting more difficult, more challenging. We have to go into more hostile, more difficult places, it costs us more. But we need to do a great deal more work on the demand side. We need to more efficiently utilize energy. So we need to add supply, but we also have to reduce demand.
We need to develop every source of energy. It’s oil, gas, coal, nuclear, solar, alternatives, renewables. But on the other hand, we also need to face the facts—we can point our fingers politically to how this has happened over the last 20, 30, 40 years, but the facts are we’re going to be based on fossil fuels for a long period of time, even with all these other sources of energy.
...If we use one-fourth of the globe’s oil, we need as a consumer to work with the producing nations in a much more sophisticated, ongoing dialogue so as to make sure for energy security that it’s available medium- and long-term where it’s a much better dialogue between the producers and the consumers. We need to be doing this.
And the second thing that’s mentioned just a moment ago with respect to demand, you know, we—you look almost 30 years ago that we made any real movement or progress on efficient use of transportation fuels, and when we did this 30 years ago we effectively over a five-year period of time reduced demand for oil for transportation fuels by two to three million barrels a day. It seems to me there’s been enough finger-pointing for a long period of time that we need to improve the efficiency of transportation fuels. And this goes a long way.—James Mulva
Although all three executives stressed the need for greater investment in alternative source of energy, neither of the other two execs echoed Mulva’s call for greater fuel efficiency.
The current average fleet economy for new passenger cars is 27.5 mpg— the same level set as a target for 1985 by Congress in 1975 after that period’s energy shocks.
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