About This Item

Share This Item

The AAPG/Datapages Combined Publications Database

AAPG Bulletin

Abstract


Volume: 55 (1971)

Issue: 1. (January)

First Page: 153

Last Page: 154

Title: Economics: Without Which--What?: ABSTRACT

Author(s): Michel T. Halbouty

Article Type: Meeting abstract

Abstract:

No organization or company with a product to sell can remain in the business of selling that product if the raw materials or parts which make up the product become unavailable. Nor can the company grow if the supply of inventory diminishes in the face of increasing sales ability and demand.

Basic to all such businesses, therefore, is the economics concerned with the availability of inventory, or raw materials. Without raw material for product, there is no business, and without business there can be no need for the economics of running a going concern.

The oil industry, like others, cannot continue to do business long without an adequate and reliable supply of inventory, namely large domestic reserves. Just as great copper reserves in foreign countries are being nationalized by those nations, it is possible that the huge foreign reserves on which the petroleum industry depends for much of its raw crude today may not be available to us someday.

It would be good economics for the domestic petroleum industry to insure its future by giving more consideration to finding domestic reserves. This would ensure a reliable future source of raw materials and would protect this nation from dependence on unreliable crude holdings in foreign countries.

Attainment of raw materials for the future will necessitate the use of economic wisdom in the exploratory search for reserves. For example, (1) exploration money should be used in favorable trends where profitable fields are likely to be found; (2) exploratory tools should be used effectively and efficiently and should supplement, rather than replace, fundamental geology and bold, creative, optimistic geologic thinking; (3) resources should not be placed in jeopardy because of undue risk (expensive drilling programs require partners in many cases); (4) manpower should be used to best advantage, and cooperation between the various disciplines should be stressed; and (5) management should encourage new ideas of exploration, especially those dealing with the search for paleogeomorphic an stratigraphic traps which probably contain the large, undiscovered reserves of the future.

These economic practices, combined with greatly increased domestic exploration and drilling, will satisfy

End_Page 153------------------------------

the basic economic need of the petroleum industry which, simply, is a reliable, adequate, and continuous source of raw materials through new, large, domestic reserves.

End_of_Article - Last_Page 154------------

Copyright 1997 American Association of Petroleum Geologists