Despite all the protest blaming the oil companies for the price of oil, I can assure you they are not the problem. I work for a midsized oil and gas company, but I also run a small, family owned oil company. When the price of oil goes up, you would not believe how the industry and government reacts.

Here's an example: the cost to drill a well has in some places doubled and tripled since the commodity price has gone up. Why, because the oil service companies know they can get it. We simply have no choice.

Here is the best part though. The government is up in arms about the price of oil, but they hamper the domestic drilling through insane government intervention. In the last 4 months, our little family company has been decimated by the EPA with fines dating back years. They have decided to retroactively fine companies for laws passed 15 years ago which were never enforced. Why are they doing it? Simple, they believe all the oil men are rolling in cash and they want their share.

As a result of these actions, both companies have slowed their drilling and my little company is in the throws of being dissolved because of the hassle and expense. The closing will have little effect on the overall oil production in the states, but it doesn't help.

Just my thoughts,
Ed Hertel