Shell's Answer Man

Shell Oil President John Bookout rose through his firm's exploration and production division, earning his reputation for expertise in the search for oil and gas. But now, at the top, he spends some 60% of his time on public affairs, explaining energy matters to elected officials, Government regulators and skeptical consumers. The tall, slow-talking Louisianian recently discussed the global quest for new energy sources with TIME Correspondent Robert C. Wurmstedt. Excerpts from the conversation:

The Oil Exploration Outlook: We estimate that two-thirds of the remaining oil and gas to be discovered in the U.S. exists under the approximately 760 million acres onshore and the 500 million offshore acres that the Federal Government owns--something like 60 billion to 80 billion bbl. of oil and 300 trillion cu. ft. of gas. While other countries are leasing and exploring about 40% of all the coastal land outside the U.S., less than 5% of our own offshore land has been explored. We think the undiscovered oil off the shore of Alaska alone is equal to the entire known reserves of the U.S. today--about 27 billion bbl.

The problem is that the Administration's current lease sale schedule, which opens the land for exploration, is too little, too late. We are unable to go first to the areas we think have the greatest potential. Industry is pushed into intense competition for small deposits that will not really make the largest contributions toward solving our energy problems. Under the Administration's schedule, we will be producing 1 million bbl. per day from Alaska by 1995. But under our schedule, production would be 4 million bbl. by the same deadline. That would be more than half our current daily imports.

Environmental Concerns: It is certainly not accurate to portray me or the industry as anti-environmentalist. We are making a plea for proper balance between clean air and water, and the dire need for energy. I think the industry has a good record. The problems are brought about by a few obstructionists who have used environmental legislation in a manner never intended by the legislators. These obstructionists are basically antibusiness groups and "no-growth" theorists. Some have been appointed to influential Government jobs.

The public does not understand the alphabet soup of things that are strangling us. The Government, for example, drilled 60 holes while exploring in the federal petroleum reserve in Alaska. Nobody stopped it or interfered. But now that there is discussion about private industry's undertaking the job, there are all kinds of noises about the need for environmental impact statements. We do need Government control, but not this laborious paperwork and red tape that cause such delay.

Looking Ahead: Our vulnerability to OPEC imports in the year 2000 will depend on whether or not we very soon develop the national will and public policies that will permit us to do what's essential: to go after the energy in the U.S. There is still as much oil to be discovered in this country as has been produced in our entire history. But it takes money, it takes time, and it takes the freedom to go look for oil and gas.

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