December 2012
Supplement

If I were you, Mr. President…

Robert E. Warren's letter to the President. Some thoughts about leveraging the oil and gas industry to drive positive change for our country, while improving the President's image and drastically enhancing his legacy.

 

ROBERT E. WARREN

ROBERT E. WARREN, President, Baclenna, Inc.

 

 

If we do not change our direction, we are likely to end up where we are headed.

- Chinese Proverb

 

The first step toward greatness is to be honest.

- Unknown

Dear Mr. President,

First, I respectfully convey sincere congratulations for what can only be described as a brilliant re-election campaign. And while the electoral split was lopsided in your favor, the popular vote was extremely close—but to the objective observer, such a marginal vote difference indicates we are still a very divided nation. Following the logical thread, those facts then suggest that about half the voters, and maybe more citizens who just didn’t vote, are not pleased with our national progress, and (possibly) your leadership. Here are some thoughts about leveraging the oil and gas industry to drive positive change for our country, while improving your image and drastically enhancing your legacy. This just doesn’t seem complicated…

Unemployment. At last count, the official unemployment percentage was bumping 8%, but there are some silly skeptics who insist the number is much higher than that. In addition to whatever the real number is, there already are, and will continue to be, veterans by the tens of thousands returning from their tours of duty, who also need employment with career opportunities. This may be thinking too far out of the box, but there are many, many operators, drilling contractors, service companies, vendors, and countless support businesses all over this country that cannot hire enough qualified/disciplined/responsible people—read veterans—to fill the roles. They will continue to require tens of thousands of workers in the future.

Many companies in the oil and gas industry have their own integrated training plans, but there are separate academic and industry initiatives in progress today to provide a gateway for these young men and women to join the work force. You could make their enormously challenging return to civilian employment much more positive by directing that training and career opportunities, in the oil and gas industry, be given high priority. They also deserve (as you say) a fair shot, and the industry needs them. You could have enormous impact on industry manpower requirements while supporting the men and women who’ve served this great nation. It would be a win-win, sir, and you would get the credit.

The Economy. There has been much reported about the incredible advancements and successes with horizontal drilling and hydraulic fracturing. It should surprise none of us then, that the United States could reportedly overtake Saudi Arabia as a producer, even to the point of becoming an exporter in the next few years, say 2020. Consider the significant economic impact then, if you began to open the door to the areas that have been either off-limits, or slow-rolled, for years. Just the rumor that you would raise the veil on permission to conduct long-term E&P operations (call it something catchy like the U.S. Strategic Energy Initiative) offshore the East Coast, and in major new areas of the Gulf of Mexico and ANWR, coupled with your approval of completing the Keystone Pipeline, would bring new confidence to your newly won presidency, and new respect.

Include a streamlined regulatory framework, and you could strike a huge blow for deficit reduction and create major new employment opportunities (see unemployment above), while making—finally—a decisive move toward energy security, which is very different from energy independence. The industry would expand, produce major new sources of revenue for governmental purposes, and your enviable legacy would be sealed—almost.

Leadership. At this time last year, Mr. President, I wrote about the looming storm in the Middle East, and the tsunami of revolution that continues to sweep across this incredibly complex area of the world. As you know, the forces of change and strife in that region increase by the day, moving closer to my projection then that Israel would launch a pre-emptive strike against Iran’s nuclear (weapons) program during 2012. I regret to leave that particular view intact today, with Israel in nearly full mobilization against Hamas in the Gaza Strip, restrained only by a tenuous cease-fire.

The connection that all of that has to the industry is that this could be a prolonged event with enormous impact on our economy—and our energy security—under your watch. The time for diplomacy is likely finished in the Middle East, with guns, missiles and bombs replacing cheap talk to resolve issues. The question is, will you unleash this nation’s fossil fuel industry in preparation for the shockwave of a global energy crisis? It would be too little, too late after the Straits of Hormuz and the Suez Canal are blocked, but you, sir, can make a huge impact on our ability to minimize any crisis with some bold energy directives right now. Your decisive leadership with the urgent, increased development of our domestic production would ensure your legacy at a time when we, and the rest of the world, are watching to see if you achieve true greatness … and with full respect, I wish you well in that effort.  wo-box_blue.gif

 

The author


BOB WARREN is President of Baclenna, Inc., an energy consulting service based in Katy, Texas. He holds a BS degree in Petroleum Engineering from Texas Tech University, an MBA degree from the McCombs School of Business at the University of Texas, and has completed the Corporate Social Responsibility Program at Harvard Business School. He has more than 40 years of industry experience, including 20 years at Pride International, now Ensco.
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