August 1998 Vol. 219 No. 8  Editorial

Thomas R. Wright, Jr.,  Editorial Director

Hodgepodge

When President Clinton in June extended a moratorium on offshore drilling for another 10 years, we weren't a bit surprised. Incensed is a better term — not so much because of the extension, but because of when and where he set up his grandstand.

Actually, Clinton signed an executive order that would prohibit leasing (not drilling) by not appropriating the money necessary to hold future lease sales. In case you have forgotten, this was the same tactic George Bush used to get some extra votes during his unsuccessful campaign for re-election. In fact the Bush moratorium runs for another four years.

Clinton went to Monterey, Calif., where the National Oceans Conference was being held and blind-sided most of the delegates who had planned on hearing a learned discussion of the pros and cons of all types of offshore development. However, industry claims of a near-perfect record operating offshore; that natural seeps discharge 100 times more oil into the environment than offshore drilling; and that less drilling means lower domestic production, and hence, more imports and increased risk of spills from higher tanker traffic, were smothered by the media circus staged by Slick Willy. (As hard as we've tried to avoid that over-used moniker, we just couldn't in this case, given his outrageously sneaky grandstanding.) Clinton's set-up of those hoping to participate in a bona fide conference once again demonstrates how deserving he is of the above title.

Another politician and possible presidential contender made some public pronouncements in Houston recently that brought back memories. The venue was the national Democratic Convention and the star "performer" was former Texas Governor Ann Richards who gave the now infamous speech ridiculing then President Bush for being out of touch with the common folk. Richard's line about "poor George being born with a silver foot in his mouth" got lots of media play and may have even backfired on the Democrats because some thought it was so mean spirited.

Now comes George The Younger (also know as George W., the Shrub or Governor, in Texas) who was appearing with former President Carter at a Habitat For Humanity work project in Houston. At a gathering of volunteer workers who were about to go out and build 100 homes for the poor within a week, Shrub was extolling Carter's virtues (which are quite impressive, considering the amount of hands-on charity work he performs). Bush praised Carter and then tried to compare him to his father, quipping "You build homes, and my dad jumps out of airplanes." This must prove that the silver foot affliction is hereditary. How else could one stoop to comparing Carter's work to George The Elder's foolish skydiving stunt?

Incidentally, Carter said he came to Houston "to build a house, not to shake hands and take photographs." He also stayed in a university dorm and ate in a cafeteria with the rest of the out-of-town volunteers.

While it's way too early to get serious about standings in the polls, George W. seems to be leading the current group of presidential candidates, both announced and "thinking about it." He also has been doing quite a bit of traveling and fund raising for his non-campaign. If he gets the nomination, it'll be interesting to see if the Democrats bring in their top gun slinger, Acid Ann. Wouldn't that be fun.

Outside the U.S., it seems that the folks most indebted to George The Elder have been going through some embarrassing times. Seven years after their liberation from Saddam Hussein, the Kuwaitis have discovered that promises of reform have largely been broken. The crown prince, Sheikh Saad al-Sabah said he would restore democracy, liberalize the economy and limit the number of migrant workers. All have been attempted, but none have been successful to any degree. The extensive welfare system is eating up revenues, which are in severe decline along with oil prices, and recent college graduates can't find jobs that match their cultural standing. However, there still must be plenty of other jobs since foreigners again make up two-thirds of the population.

If the above weren't enough, now comes an article The Economist citing a mounting drug problem. To the dealers' delight, there is an abundance of young, rich, bored, and now, westernized Kuwaitis to exploit. Surprisingly, officials publicly admit to the problem — it's difficult to hide when the best known place to score drugs is a rehabilitation clinic and a top anti-drug official is accused of complicity. Having acknowledged the problem, the Kuwaitis and the United Arab Emirates, which has begun a public anti-drug education program, argue that their neighbors must do the same. Saudi Arabia, so far, has been silent on the matter.

However, the hottest drug on the Saudi market isn't mind altering anyway. The real money maker is — you guessed it — Viagra. Seems this libido-enhancing drug is in huge demand, going for as much as $80 per pill in the "under the dishdash" market. The extremely conservative Saudis frown at the situation, but since the medication is not classed as a narcotic, authorities usually ignore its importation.

Not so fast. Just a few months ago, an outfit in Houston called Pitts and Spitts of Texas announced that it was going into the oil equipment manufacturing business. It is changing its name to Energy Drilling Industries since business has expanded from just making upscale barbecue pits to making metal products for the petroleum industry.

Actually, it's getting back into the business. The company was founded 25 years ago as Har-Whit Inc. and was primarily involved with oil and gas when the bust of the 1980s hit. Company engineers came up with the idea of manufacturing first class cooking grills as a means of surviving.

The company said it planned to expand its manufacturing plant by 100% and was looking at buying two companies. Considering the current state of things, we hope that either: a) they haven't signed the plant expansion contract yet, b) they've got rock-solid, non-cancelable orders for equipment, or c) know where they can sell twice as many barbecue pits.

Copyright © 1999 World Oil
Copyright © 1999 Gulf Publishing Company