French oil giant says demand could catch supply

World demand for oil may soon outstrip supply as the cost of replacing reserves reaches $80 a barrel, according to the head of Total SA, Europe’s third- largest petroleum company.

Total’s de Margerie fielded a barrage of questions from French deputies over the size of global reserves, rising oil prices and their impact on consumers.

The $80 a barrel cost of producing crude is a new “technical” floor for oil prices, he said, adding that oil prices are likely to remain high in the future.

“What has hurt most isn’t the level of oil prices but the rate at which they have risen,” he said.

Total said two days ago world oil production will reach a plateau of 95 million barrels a day before 2020, placing a limit on growing energy demand.