Speaking at the Oil and Money conference in London, chief executive officer John Hess said that once the economy recovered, oil demand would increase by 1 million barrels per day each year.

"The financial crisis of the past year has reduced demand by 2 million barrels per day, creating excess inventories and lower prices," he said.

"While this setback has brought us some welcome breathing room, I believe that it is only temporary.

"Once economic growth recovers, it is likely we will return to the market conditions of one year ago. The price of $140 per barrel oil was not an aberration; it was a warning."

Hess also said given the long lead times of 5-10 years from oil discovery to production, the world needed to act now to avoid an oil crisis.

"We are not running out of oil but growth of production capacity over the next several years will fall short of the incremental 5 million barrels per day each year that we will need to meet demand.

"We will ultimately be at risk of supply rationing demand through skyrocketing prices that will threaten economic stability and prosperity.

"If we do not act now, we will have a devastating oil crisis in the next 5 to 10 years."

Head of the University College London School of Energy and Resources Professor Tony Owen told PetroleumNews.net he didn't think there was going to be an oil shortage but said the price would go up due to demand coming through the Southeast Asian countries, particularly China and India.

He also said he believed the long-term oil price would probably stay around the $US80 a barrel mark to encourage investment.

"The long-term oil price is probably about where we are now, maybe slightly higher simply to encourage investment ... that's need to release more oil onto the market over the next decade.

"But there could be considerable volatility depending on the impacts of events in the Middle East.

"It only needs one event that perhaps pushes the price way over a $100 a barrel back to where it was some time ago."