Oil prices low? Chevron CEO says no

Interview of Chevron CEO Dave O’Reilly by KRISTEN HAYS

Nov. 8, 2008, 12:35AM

SAN RAMON, CALIF. — Dave O’Reilly, the 61-year-old chairman and chief executive of Chevron, the fourth-largest publicly traded oil company in the world, heard all the rhetoric on energy throughout the contentious 2008 presidential campaign along with everyone else.

In an Election Day interview, O’Reilly spoke with the Chronicle at his company’s San Ramon headquarters. Dressed in khakis and a button-down without a tie, O’Reilly tossed aside the notion that oil prices are low. Although half its unprecedented summer high of more than $145 a barrel, $60-$70 oil is still pricey, he said. Just a decade ago, crude fell below $10 a barrel. O’Reilly also said oil prices became unsustainably high, and that the cyclical nature of the market brought crude back to reality.

And either way, he said, the industry needs to plow ahead with exploration and projects to keep oil and natural gas flowing because demand will rebound. Here are edited excerpts from the interview, which took place before the presidential outcome was known.

To read the interview please click link http://tinyurl.com/5a87en