September 13, 2006

VIENNA (Reuters) — Some of the biggest oil companies are urging consumers to use less energy to bring down prices and slow rising global demand.

The move comes as concern grows about global warming and as the oil industry contends with limited access to new reserves and criticism from politicians for not investing enough.

"It's interesting they are saying that because very often they have not said anything on (the subject of curbing demand)," says Claude Mandil, head of the International Energy Agency.

"I fully agree with them," he told Reuters on the sidelines of an OPEC seminar on Wednesday.

Chevron, the second largest U.S. oil company, ran a two-page advertisement in Britain's Financial Times Sept. 6 encouraging consumers to use less fuel.

"A 5% reduction in global energy use would be enough to power Australia, Mexico and the entire UK," the ad said. "So what are we waiting for?"
Chevron, which says it has improved its energy efficiency 24% since 1992, is not alone among international oil firms in encouraging consumers to burn less fuel.

France's Total has advised the French government and the European Union to cool oil demand to avoid a supply crunch as production peaks and starts to decline.

Global oil production will peak around 2020, earlier than some estimates, if output growth remains at current levels, according to Total Chief Executive Thierry Desmarest.

More efficient use of energy is the cheapest and quickest way to cut greenhouse gas emissions, Mandil said.

"If we want to have a long term sustainable future, including a cap on CO2 emissions, we will need everything at our disposal," he said.

"The most important tool and the one most immediately available at least cost is energy efficiency."

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