Dear editor:

(I called Senator Saxby Chambliss and Senator Johnny Isakson’s offices in Washington, my dime, concerning our energy crisis 6 weeks ago and still have not received a response.  This is an open letter to both.)

 In December 1981 there were approximately 4500 rigs actively drilling for oil and natural gas in North America.  Today that number is approximately 1700 of which only 300 are drilling for oil. In 1981 there were approximately 360 refineries, today approximately half that number. What happened to them?

February 1982 “Big Oil” took the price per barrel from approximately $44.00 to $8.00. Result of this action broke 90 percent or better of the “wildcatters” drilling for oil and the small independent oil producers. Drilling rigs that cost $80,000 to $150,000 or more to build were a dime a dozen. Most were cut up and sold for scrap.

Large banking chains in the southwest went under.  Hugh McCall of North Carolina National Bank with friends in the Reagan Administration took these banks over for assets only, no liabilities.

Exxon spent approximately $1.6 billion on a plant in the Western slope of Colorado to process oil from “shale rock”.  It never opened after the price drop.

Who ended up with the assets of the “wildcatters” and small independent?  “Big Oil” of course!

The attorney general who worked for Ronald Reagan; by the way I voted for him twice – my mistake, didn’t enforce the laws on the books.  They allowed Standard Oil of California (Chevron) to purchase Gulf Oil.  The only thing Justice required was that Chevron sell all of the Gulf Service Stations east of the Mississippi River. They were bought by British Petroleum. Chevron doubled or tripled the size of the Pascagoula, Mississippi Refinery and destroyed a Gulf Oil Refinery at Venice, Louisiana near the mouth of the Mississippi River.

Every administration since has followed this same road; they have let the oil industry lobby sell them and Congress bill of goods.  Goods only for Big Oil.

When there was price control on the price of a barrel of oil, Exxon, Mobile, Chevron and etc. were all billion dollar companies. They were known as the “Seven Sisters”.

The Tar Sands/Oil Sands in Alberta Canada has more oil than Saudi Arabia. The “deep waters” of the Gulf of Mexico has more oil and gas than the “Middle East”.  Chevron has made a discovery in their block which is estimated to be greater than Alaska.

If there is an oil shortage in the United States, why is there only 300 rigs drilling for oil?

I spent over 20 years selling steel pipe to the oil and gas industry, a lot of what I speak about is from first hand knowledge.

 These prices today are due mostly to a lack of competition.  The oil speculators could be stopped anytime “Big Oil” wishes just as they put the “wildcatters” out of business.

By the way, T. Boone Pickens, a Texas oil billionaire, said recently on CNBC’s Morning Business News that the refineries in the U.S. were running at only 88 percent of capacity.

As one “Big Oil” Company bought another out, refineries were destroyed in the U.S.

I only know of one OPEC Country that sells gas in the U.S., Venezuela – CITGO.

The oil industry with its lobbyist would have us believe we have reached the “tipping point”.  I have serious doubts.

Since the so called “Arab oil embargo” of the early 70’s, huge fields of oil have been discovered and have came on stream. Countries such as Mexico have more than doubled their output. New fields exists in Ecuador, Peru and most of South America and on the continent of Africa; Nigeria, Libya to mention two.  Many estimates of the Sudan’s deposit of oil have it far greater than a large part of Arabia.  What of Indonesia, Uzbekistan, Turkmenistan, and a new field in Russia?  The North Sea came on stream after the early 70’s.

Why should the Congress of the U.S. trust these Oil Giants?  Have you forgotten what they did when President Nixon put price controls on profit margins?  When an oil tanker left the Middle East owned by one company, we will call them, Company “X”, they then sold it on the high seas to Company “Y”, who sold it to Company “Z, then to Company “W” and just before docking in Houston or wherever in the U.S. it was sold back to Company “X” who then sold it to their down stream company. Profits each time for everyone. It’s time for Congress to do a serious investigation before “Big Oil’s” greed plunges us into a world wide depression.

We the people of the United States have since day one been the masters of our own destiny. You the “Congress” of these United States must decide in favor of speculator “Corporate Greed”; or the people of Georgia and these United States. 

 

William C. Byrd

 Tifton