Reply #2: This is a brilliant post, by someone who knows the oil industry.

[vickitulsa]

I am an Okie who worked in Big Oil for many years -- even
worked on the construction of the TransAlaska Pipeline in
'74-'75.  Most people have no clue to how the "energy
industry" really works, though many are distrustful and
wary of them, with good reason.

Fractionation can bring back in many wells that have been
plugged, and Russia does indeed have beaucoup massive oil
deposits down deep.  If the U.S. companies provide the
infrastructure and technology that the Russians have never
had, huge oil reserves could be tapped and put into the
pipeline, literally.

I think any U.S. companies, whether it's Halliburton or
Bechtel or whoever, should really think twice before trying to
hoodwink Putin into letting his old enemy (us) prop up our
fossil fuel based economy quickly and cheaply with Russian oil
just because we have the know-how to get it out of the ground.
 Never forget that Putin is a former head of the KGB -- and if
anyone thinks the KGB no longer exists, they should think
again.  Change a name, lie some more, carry on the work,
that's how it is.

OTOH, as long ago as 1995, I was working for an exploration
company headquartered in Tulsa whose owner was young, rich,
and savvy, and he was making frequent trips to Russia to
assess the potential for mining the fossil fuel reserves
there.  In one sense, it's all about infrastructure, and
that's where Russia can't yet "do for itself" and
may need American companies to get things moving.  But once an
initial contract for the oil produced has expired, do we think
the Russian government will allow US to benefit from the
continuing flow of oil or natural gas from regions in their
control?

My money is on the inevitable resumption of oil acquisition in
a region the U.S. owns:  namely, Alaska.  The recent
skyrocketing of gasoline prices at the pump will result in
fast-tracking of legislation opening drilling in ANWR.  I am
not necessarily against this, as I saw just how
environmentally safe building a massive oil pipeline can be
back in '74.  But the TransAlaska project was delayed for
YEARS by environmentalists, from 1968 to 1973 -- when the oil
embargo by OPEC and prices at the pump higher than they are
now (when adjusted for inflation) made Americans willing to
allow legislators to push through the TransAlaska project in a
heartbeat.  

ANWR can be protected, and I think its massive crude oil
reserves can be very helpful to ease the price burden of
Americans paying for gas.  But we have to remember that it
will still take some time to get that oil flowing.  Huge
construction projects can't be completed in a year.  However,
so much of the pipeline and pumping infrastructure  is already
in place in Alaska in the form of the Alyeska pipeline.  And
the technology for locating and drilling in the right areas to
tap into more than an estimated 10 to 15 billion barrels of
oil KNOWN to be in ANWR is making a project there very
appealing even to environmentalists.  They know as well as
anyone that the TAPS project did not cause grave harm to
pristine Alaska, because they had guard dogs onsite in many
forms and the construction was monitored so heavily you
wouldn't believe it.  We couldn't even wake up a hibernating
BEAR in order to survey centerline north of Delta Camp because
she was protected!

Actually, a helicopter that came to pick up the survey crew,
showshoes and all, DID wake up that bear, and she ran out her
cave a few hundred feet onto the permafrost, which pleased the
oilmen, but then she turned right around and ran back *into*
her cave and went back to sleep!  We could not disturb her and
construction was held up for several more weeks waiting for
her to wake up and stay up.  There was even an article in the
Wall Street Journal on this story, taken from my report in our
pipeline newsletter, The Campfollower.  

We had inspectors onsite every day making sure every oil spill
even as tiny as a quart was properly cleaned up with absorbent
pads, and the terrain restored to better-than-new.  There were
state inspectors and federal inspectors, in addition to
Bechtel's own inspectors and the environmental guys.  About
four or five different approvals had to be given to begin any
new section of surveying and construction, even of something
as small as a tool shed, and okaying any cleanups done.  It
was amazing.  One of my jobs was making sure all approvals
were in place BEFORE further work was done, and
Bechtel/Alyeska was diligent about these steps.  They knew
they'd better be -- the fines for mistakes were potentially
crippling!

Sorry, I got carried away thinking about this.  There are
times when I actually MISS working in the industry because I
learned so much and had some great adventures that way.  :D

Of course, you can imagine that I understand how Cheney and
Bush think better than the average person who is not an
insider in Big Oil, too... and it often makes me feel ill to
think of what powerful positions those two are in, and what an
"oil-based administration" we have in office at the
White House right now.

I was watching a program about the Gulf War on the History
Channel yesterday, and saw GWHB on tape admitting, "Well,
no, I can't say that oil was *not* a consideration at all in
our decision to go throw Saddam out of Kuwait."  Yeah
right!  "Can't say" that indeed!  ;)