Chevron Corp. (CVX) Chief Executive John Watson said Wednesday that oil prices of more than $80 a barrel aren't a risk for the global economy and it isn't likely that they will increase dramatically.

"We haven't seen significant impact from oil prices at the currently levels in the economy today," Watson told Dow Jones Newswires in an interview. "Current oil prices don't pose a great risk."

The head of the largest U.S. oil company by market value after Exxon Mobil Corp. (XOM) said the "tenuous" rebound the economy has experienced, however, could be hurt if oil prices experience extreme volatility like that seen in 2008 when oil prices hit $145 a barrel, a level Watson said is unlikely to be reached. "We don't foresee that to happen again," Watson said.

Watson's remarks came the same day that Saudi Arabia Oil Minister Ali al-Naimi said oil prices are still trading at sustainable levels and that he is more optimistic about the prospects of world energy demand. Watson and the minister, who controls the petroleum policy of the most powerful member of the Organization of Petroleum Exporting Countries, shared a panel at the U.S.-Saudi Business Forum in Chicago . Naimi said the worst of the economic crisis was "over."

Other factors such as increasing sovereign debt pose a bigger risk for the economy than high oil prices, Watson said. Oil ended Wednesday at $83.22 a barrel.

The San Ramon, Calf.-based company hasn't changed its $21.6 billion capital-expenditure budget for this year, but Chevron is looking for the right investment opportunity that could boost its expenditures, Watson said. He confirmed that the company's oil and gas production is expected to grow 1%, the same target Chevron provided in its analyst meeting.

Watson said he "hopes" President Barack Obama won't change his proposal to open new areas in federal waters for oil and gas exploration due to the blast that sank a Transocean Ltd. (RIG) drilling rig in the U.S. Gulf of Mexico last week, which he described as a "terrible" accident.

"We don't think the Obama administration has changed that view," Watson said. "I hope they will continue to make acreage available to the industry." Watson said the oil industry should do "everything it can" to learn from the accident and make all the safety improvements required.

Despite the current oversupply of natural gas, long-term fundamentals will support the relationship that links natural-gas prices to oil prices, Watson said. "The supply-demand balance is going to be different than today in four or five years," Watson said. Chevron, which is aggressively investing in massive liquefied-natural-gas projects in Asia , still expects long-term demand for LNG to grow in the years ahead.

Watson also said the company is in talks with China to sell liquefied natural gas. "We have, and we will continue to have, discussions with Chinese customers," Watson said. Chevron is one of the few oil majors that isn't selling or committing to sell LNG to China , the world's fastest growing market for LNG.

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