Oil prices crash through $140 record

Oil chiefs and energy ministers are meeting this week in Madrid for the World Petroleum Congress to discuss soaring prices, which this week topped $140 a barrel.

One of the main issues under debate at the conference, held every three years by the World Petroleum Council, will be why prices have been rising so quickly.

The Organisation of Petroleum Exporting Countries (OPEC) has claimed speculators are to blame, rather than a lack of supply.

However, BP chief executive Tony Hayward said this was a "myth" in his speech to delegates.

"Supply is not responding adequately to rising demand," Mr Hayward said.

The reason for this, Mr Hayward implied, was politics not geology.

"The problems are above ground not below it," he said.

Environmental concerns will also be high on the agenda. The theme for the meeting is 'a world in transition: delivering energy for sustainable growth'.

World Petroleum Council president Randy Gossen said: "The world is in transition: increasing population growth, energy intensity and globalisation has led to a phenomenal rise in the use of energy. Experience demonstrates that price volatility and alternating boom-and-bust periods are harmful to industry and consumers.

"The challenge for our industry is to ensure continuous, affordable and reliable energy supply, meeting society's expectations in a sustainable, transparent, ethical and environmentally sound manner."

Jorge Segrelles, chair of the 19th WPC organising committee, added: "We think the conference theme appropriately reflects what is happening in world markets.

"The industry must deliver and in a sustainable way."

Other issues under debate will be security of supply, investment in energy-supply infrastructure, access to reserves for international oil companies and sustainability, Mr Segrelles added.