[CROSSHIGHWAYMAN]

If the oil executives had any backbone they would change the subject to allowing more drilling and refineries.

If they can't plow profits back into the business because of the choke-hold the environmental wackos have on anti-American Democrat congressional contingent.

[raygun]

I watched Charlie Rose interview him on PBS last night. That issue was actually addressed. While it is true that no new refineries have been built in the last thirty years, the equivalent of three refineries has been added to production capabilities of existing refineries. Secondly, it would take 3 to 4 years to get the permits needed to build new refineries, and then it would take about 7 years to build one. Finally, there is a whole support infrastructure that needs to be in place to support refinery operations. Lee said that there are serious economic viability issue concerning building new refineries.

Furthermore, Lee said that prospecting for new oil is an intractible issue. For the most part he said that oil exploration in the U.S. is pretty much over. All the major reserves have been found. Reserves that are known of are either prohibited from being drilled, or they are in deep water GOM. Lee intimated that if a company was going to drill anywhere, they'd be better certain that they're going to tap something. Because at $100 million per well, it don't pay to drill a dry hole. Lee even mentioned ANWR.

He said that there's no conclusive proof that oil exists in ANWR. Lee's has a long background in the industry, and he said that he's talked to many a geologist who was certain where oil would be found. And many a dry well were drilled on that certainty too. So all the controversy about ANWR is for the birds until we actually drill there to find out if oil actually is there.

Furthermore, Lee said that in real terms, even at $70/bbl, oil is cheaper at present than it was in '80-'81. He said that in '80-'81 he said discovery/extraction costs amounted to $4/bbl. He said that today it amounts to $0.66/bbl. He intimated that the expense decrease was due to increased efficiency of the technology, and equipment. He intimated that its extremely difficult for a company to remain fiscally viable engaged in the search, extraction, processing and sale of a commodity that gets progressively cheaper in real terms, despite increased volume of sales.

I thought it was a pretty good interview considering the host, i.e., Charlie Rose.