I recall reading a prediction in 2004, when crude was trading around $41/bbl, that the price of crude would drop when war ended in Iraq. Now, even though war in Iraq is almost complete, the worldwide expansion of terrorism has created the terror premium, which has been widened by revolts against dictators in North Africa and the Persian Gulf states. To further complicate the matter, President Obama shut down drilling in the Gulf of Mexico after BP's well blowout last year, cutting crude supply by 500,000 b/d. Everyone knows the outcome. We, the small oil explorers and producers, began receiving black eyes from the antioil media for rising oil prices.
Almost all Americans either hear or sing frequently of "the land of the free and the home of the brave." Is this something to be framed, hung on the wall, and forgotten? Or is it something to be lived by explorers, oil companies, and others associated with the constant labor essential to the supply of affordable energy to all Americans?
Who took the incredible risks and invested dollars, often their last, to discover the giant oil fields that led to the birth of the oil industry? This pioneering work was performed by independent producers, many of which grew from humble beginnings into major and supermajor oil companies. Then why today is there not more interaction between independents and majors in exploration?
In a recent visit to the Houston Zoo, I found brave lions, once used to roaming in freedom, now looking at visitors from their cages with defeated eyes. Like those caged lions, once-fearless US independents are now boxed in by ever-changing rules from the Environmental Protection Agency, expanding federal and state regulations, antioil lobbies in Congress, disappearing capital markets, and punitive, multiple tax regimes. Brave risk-taking, creative freedom of enterprise, and job-creating visions are slowly disappearing among this generation of American independents. Tomorrow? Well, readers can guess. Washington is wishing for green energy, so let's wish for the faster spinning of Earth—to have sun for 18 hr/day and maybe more wind energy. I just saw two of my neighbors losing homes waiting on green energy.
While tonight Washington is debating how to save our republic from financial and economic implosion, I hope someone will also look at boxed-in, energy-exploring entrepreneurs and tell our countrymen honestly and truthfully why they are paying $3.80-4/gal for gasoline while many of them are jobless.
Kumar Bhattacharjee
Independent global explorationist
Houston
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