The National Petroleum Council July 18 approved a new oil industry study that calls for more investment in energy infrastructure and technology as well as in alternatives to conventional crude oil and gas to meet growing demand over the next 25 years. The NPC—a federal advisory group—presented the report to Energy Secretary Samuel Bodman, who said, "This is truly a landmark effort in my judgment...I feel the responsibility to put this to the best possible use in the future."

The study, conducted by the NPC at Bodman's request, says that although the production of oil and gas is expected to increase over the next 25 years, supply from conventional sources will be insufficient to keep up with growing global demand in the years ahead. The NPC estimated that global demand for energy could increase by as much as 50 to 60 percent by 2030, an increase that will be driven in large part by developing nations.

To meet that demand, "expansion of all economic energy sources will be required, including coal, renewables, and unconventional oil and natural gas," the report concludes.

Donald Paul, vice president and chief technology officer, Chevron Corp., one of the study authors, said that the current uncertainty in the energy sector means that all potential opportunities should be explored. "If you begin to eliminate branches of opportunity, you limit your ability to deal with uncertainties in the future," he said.

The report's authors, who also included study chair Lee Raymond, a former chief executive of ExxonMobile Corp., and other energy industry leaders, also said that more investment in infrastructure projects that will deliver energy is urgently needed. The International Energy Agency's World Energy Outlook estimates that $20 trillion will be required for new infrastructure projects over the next 25 years. "Higher investment in real terms will be needed to grow production capacity. Future projects are likely to be more complex and remote, resulting in higher costs of energy produced," the report said.

Alan Kelly, former corporate planning general manger with ExxonMobile Corporation, said that he hopes the information is useful to federal lawmakers currently grappling with energy legislation on Capitol Hill. "I hope they'll look at the data," he said.