Azerbaijan, Baku, 9 June / Trend / The era of cheap energy is over as oil production is not rising fast enough to meet demand amid a lack of spending, BP Plc Chief Executive Officer Tony Hayward said, Bloomberg reports.
The energy industry is facing the challenges of climate change and ways of increasing supplies, Hayward said at the Asia Oil and Gas Conference in Kuala Lumpur.
Taxes and government share of oil and gas revenue have continued to increase across the world, hampering investments by explorers and producers, he said. State-run companies are demanding better terms as energy prices surge.
``This is unsustainable and counterproductive,'' Hayward said. ``All it means is that we have less money to invest in new production.''
Last week, the oil prices increased by $10 to $139.12 per barrel. Major reasons causing increase are the instability in the Near East and high demand for hydrocarbons.