CNN: Shell: $50 oil may spur alternatives: Oil company says that high oil prices may spur alternative energy, such as hydro and nuclear power. (ShellNews.net)
October 4, 2004: 7:10 AM EDT
KUALA LUMPUR (Reuters) - Crude oil customers could look to alternative energy sources such as hydro and nuclear if oil prices do not come down to "realistic" levels, a senior official at a Shell unit said Monday.
"I think the short-term gain is not worth the long-term pain," Jon Chadwick, chairman of Shell's operations in Malaysia, was quoted as saying by state news agency Bernama.
"We need to see prices fall to more realistic levels that do not cause hardship to our customers," Chadwick said as U.S. light crude hovered just below $50 a barrel after last week's threat of disruption to Nigerian supplies.
Chadwick said high crude prices resulted in short-term gains for upstream operations of oil companies, but customers could ultimately be forced to look for alternative sources of energy. "That's what we would like to avoid. For the longer term, we are worried."