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Entries in Energy Policy (1)

Thursday
Apr212011

Straight Talk From Chevron's John Watson

Wall Street Journal

Probably one of the more candid interviews I have heard in a long time. It's nice to see a CEO tell it like he sees it. Most today will try to cover their tracks with political correctness and self serving statements meant to appease those who disagree with their views. Apparently Chevron's John Watson is not one of those CEO's.

The interview lays bare the idea that we as a country can eliminate oil and gas and still prosper. That the energy unicorn and leprechaun will shower us with green energies that will take us into this century and beyond and fulfill all our needs from an economic and social standpoint. Well reality has a way of chasing the fairytale off to la la land. If you noticed my heavy use of sarcasm, then hopefully you are not offended. My problem, as I have stated on this blog before, is the idea that we must destroy the economy to save ourselves. That the oil companies are out to kill us all and get rich. That the only hope for a bright future lies in solar and wind etc... All these wonderful ideas never ever live up to the hype that follows them around.

Oil and gas are not easy and cheap to extract. It takes years if not decades to find and operate a viable well or field. You have a mountain of regulations and government red tape. Above all you have politics. Lately, politics has been saying one thing, promising another and doing neither. If they keep this up, along with an energy policy not based on reality, we will lose whatever edge we have gained to foreign markets and governments that are serious about energy and the security of their people. Our oil rigs will leave our shores and the manpower and knowledge to run them will follow. As for the myth that oil companies are the only influence in setting the price of gas, think again. You have external forces like demand, social unrest in oil producing regions, dictators, a US dollar that is losing more value every day, oil markets/traders and taxes. Lots and lots of taxes. So before you go off and say lets get rid of the oil majors and domestic production, take a deeper look. You may be shocked at what you will find.