ABSTRACT

Since 1966, funded oil and gas programs have supplied more than a billion dollars of much needed capital to the oil and gas industry. Although precise figures are not available, I think it is safe to say that at least 25,000 wells have resulted from the activity of funded drilling programs since 1966. This is a significant portion of the total of 138,666 wells drilled in that period.

This nation is in dire need of both oil and gas reserves and productive capacity. We have no way to determine how much oil and gas have been found and developed by funded programs since 1966, but even a pessimistic view of their cost for finding and development indicates at least 500 million barrels of oil or gas equivalent. A continuation of this new source of capital is vital if we are to close the gap between the 100 billion dollars needed for exploration and development in the next decade and the estimated 50 billion dollars the oil industry can generate internally.

A survey of mine indicates that more than 800 petroleum geologists are now employed full-time by drilling programs, either as employees or consultants. In addition, other professionals such as landmen, attorneys, petroleum engineers, add at least another 1500 people. If we add the usual complement of staff, it is probable that at least 5,000 people are being employed today by the oil and gas programs.