He expected additional finds of natural gas, which has become the fuel of choice for power generation and Shell has targeted in the global "dash for gas". "There is a clear and understandable global trend for gas. In Shell, we have long seen a bright future for gas," he said. After the presentation, Moody-Stuart told journalists that current oil prices, at new 10-year highs over $30 a barrel, were likely to come under downward pressure with long-term sustainable prices. But companies must be ready to expect the unexpected. "There are very few things we can be sure about the future of energy industries.

One is that they will be different," Moody-Stuart told the gathering. "Energy industries have always evolved to meet people's changing needs. They will certainly continue doing so - probably more rapidly and fundamentally than we have been used to," he added.

The oil industry must make preemptive efforts to avoid damaging the environment, using new technology to minimise the threat of climate change and still remain financially viable, he said. Although he said no absolute link had been established between the rise in global temperatures and increased greenhouse gas emission, the largest man-made contribution being from fossil fuels,that was no reason for inaction. "Precautionary action is imperative. This must be economic.

It would be folly to jeopardise the economic development on which higher living standards depend. And I don't believe this is necessary. "Responding to these energy shifts will be a decisive challenge for energy firms. We see them as commercial opportunities," he added.