Acts of Terrorism Will Bring Changes, Impact To Industry

AAPG Leaders Respond

This report is being written on Attack Day plus three. An already fast-moving world began changing at warp speed on 9/11.

By the time you read this, shock waves of history will have already caused ripples that will affect virtually all of our lives in some way.

In these early hours of the shock, the EXPLORER asked several well-known AAPG leaders what may be considered an unfair question: What kinds of change are facing petroleum geologists?

Some we asked to respond could not be reached because of being stranded by travel limitations. Others couldn't respond due to company restrictions on public comments. Others couldn't respond perhaps even because of personal safety concerns due to their location.

But those who did may give us an early insight as to what we might be facing in the early 2000s.

♦   Robbie Gries, AAPG President.

I have been receiving a constant stream of messages from members around the world -- Christians, Muslims, Hindus, Buddhist alike, all express shock and sympathy.

Their heartfelt horror echoes our own. This was truly an evil and Godless act.

We will bear this with our indomitable love of humanity and justice.


I think we've seen a very stable reaction with only a small blip in prices. If there is a warlike retaliation, our business will be directly affected by higher oil prices.

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This report is being written on Attack Day plus three. An already fast-moving world began changing at warp speed on 9/11.

By the time you read this, shock waves of history will have already caused ripples that will affect virtually all of our lives in some way.

In these early hours of the shock, the EXPLORER asked several well-known AAPG leaders what may be considered an unfair question: What kinds of change are facing petroleum geologists?

Some we asked to respond could not be reached because of being stranded by travel limitations. Others couldn't respond due to company restrictions on public comments. Others couldn't respond perhaps even because of personal safety concerns due to their location.

But those who did may give us an early insight as to what we might be facing in the early 2000s.

♦   Robbie Gries, AAPG President.

I have been receiving a constant stream of messages from members around the world -- Christians, Muslims, Hindus, Buddhist alike, all express shock and sympathy.

Their heartfelt horror echoes our own. This was truly an evil and Godless act.

We will bear this with our indomitable love of humanity and justice.


I think we've seen a very stable reaction with only a small blip in prices. If there is a warlike retaliation, our business will be directly affected by higher oil prices.

♦   Larry Funkhouser, AAPG Foundation Trustee Emeritus, past AAPG president.

It's too early to predict what effect the terrorist attacks will have on the exploration industry. So much will depend on the nature and location of the retaliatory attacks that are sure to come.

Since it's likely that the retaliation will be directed primarily toward certain countries in the Middle East plus Afghanistan, there may be some disruption in worldwide oil supplies. Certainly, any exploration work in the countries affected will need to be suspended.

Perhaps one primary action affecting domestic exploration could be a stimulus to pass legislation opening up areas of high potential for new oil and gas production that are now in moratorium. Domestic supply should become a more serious concern for the United States public. An early decision to open up those areas is important because of the lead times required to bring on frontier production.

Hopefully, this terrible calamity will help to put aside the political differences that have impeded the industry's ability to provide a more secure source of petroleum for the United States.

♦   Marlan Downey, past AAPG president.

I would suggest that the significance of the Word Trade Center attack is that it demonstrates that the entire world has become a potential target area for fanatics. With an American economy that depends on fossil energy, it means that we should review the security of those few sites which if harmed might most gravely damage us.

Those of us in the energy business are familiar with a few of these "choke points" in our energy supply and usage; I would suggest that the Valdez terminal is one such vulnerable site, and I hope its security is under review.

♦   William L. Fisher, AAPG Foundation Trustee, past AAPG president.

The events of Sept. 11 clearly put this nation on a war footing -- and not without implications in areas of the world on which we are increasingly dependent for oil supplies. And so the nation's justified demand for reprisals must be done in a way that maintains some reasonable degree of stability in the areas on which we depend -- a pretty tough challenge for the president and the administration.

I suspect this tragic event will make the United States a little more isolationist, and that may well translate into broader public support for domestic energy production. Just like the concerns of the 1970s tipped the scales for the Alaska pipeline, this may well secure the opening of ANWR and other prospective areas.

♦   James A. Gibbs, AAPG Foundation Trustee, past AAPG president.

I believe that it reminds us that much of oil that the United States increasingly depends on is located in countries where citizens intensely hate the U.S. and what it represents.

It should refocus attention at the highest levels that development of all U.S. energy sources -- including solar, wind and nuclear as well as oil and gas resources -- should be encouraged and supported.

It will add impetus to arguments for relaxing restrictions of development of ANWR, offshore areas and other public lands.

It should cause the United States to work to strengthen economic and cultural ties to other Western Hemisphere petroleum producers.

Diplomatically, my hope is it will cause the United States to begin to work proactively to help resolve the Palestinian problem, which many believe is the root cause of the anti-U.S. emotions throughout the Middle East. Had the United States lobbied as hard to help create a Palestinian homeland for those dispossessed when Israel was created in 1948 as it did to establish Israel, Tuesday's events probably would not have occurred.

♦   Andrew R. Scott, Energy Minerals Division president.

  1. The United States must continue to develop and expand unconventional oil and gas resources.
  2. We need to get more support, through government tax incentives and government-funded research, in order to ensure that smaller operators will continue to lead the exploration and development of domestic energy supplies.
  3. Similarly, the United States should focus on developing domestic natural gas rather than depending on foreign oil.

  4. Acknowledge that the nation's energy supply, particularly pipelines and refineries, are also vulnerable to terrorist activities, and take actions to make sure that our energy supply is not disrupted.
  5. AAPG and the oil industry must do whatever is possible to make sure that individual gas station owners and distributors do not take advantage of crisis situations to increase the price of gasoline. These actions are deplorable and are exactly what gives the oil industry a black eye in the public view.

♦   Lee Gerhard, DPA Government Affairs Committee.

Everything is different today. Yesterday morning when I woke, the nation's energy picture was rosy, international collaboration in petroleum E&P was the norm and interest in a national energy policy was waning along with natural gas and oil prices. Today, we had better get back to the drawing board. We are at war.

Those who have argued so forcefully and successfully for increasing imports of energy rather than accessing domestic resources "until necessary" must take some responsibility for the death toll of yesterday's bombings.

Failure to act in the earlier embassy bombings because of fear of exporter's reaction to strong and deserved action was simply Chamberlainian appeasement. We know how effective that turned out to be. We reap those benefits in New York City and in Washington.

Energy policy must, absolutely must, include access to the domestic resource base, with whatever caveats are necessary to meet real environmental standards. Those standards must be scientifically valid, ecologically sophisticated, and economically rational. It may be that to become politically acceptable, the Arctic coastal plain development will be accomplished through contracts with E&P companies rather than standard leases. With the government having to pay the costs of risk and environmental standards -- but with a commensurate reward -- we would have the ability to extend production schedules to lengthen the life of the resource.

Elsewhere, national security needs must force open now-closed access to national forests and offshore our three coasts, where closures have no rational basis. Those who have denigrated the national security issue must now realize how in error they have been.

International E&P operations will continue, but under a cloud of increasing hostility between cultures. We cannot permit our Western culture of democracy to be held hostage by a culture of religious dictatorship and terrorist bombings. Because of that, international resources may be regarded as "interruptible" sources until these issues are resolved.

While South American and Central American resources appear to be accessible, the Caspian Sea, all former USSR, the Middle East and Southeast Asia resources form the bulk of present and future imports. None of these can be regarded as fully dependable after yesterday. I do not choose to be dependent on those who celebrated American deaths in their streets.

We had better get to work here at home.

♦   Robert Countryman, Membership Committee chairman.

Perhaps my words sound a bit trite but I hope that this act of terrorism doesn't fundamentally alter our society and how we interact with the world. We need to remain engaged and open to all of the diverse cultures, countries and peoples of the globe while encouraging them to do likewise. I hope that AAPG is able to continue to do these things as well.

We are currently going through a trying time and will be undergoing a great deal of reflection on the causes and the future results of this act of terrorism. The purpose of terrorism is to demoralize the target population and to cause them to fundamentally change the way they live and conduct their lives.

The best thing we can do, as a nation and as individuals, is to continue our current policies and to continue to live our lives the way we always have. Although we will have to increase our vigilance and may have to accept some security inconveniences, we must continue to be an open welcoming society and to continue to be engaged throughout the world.

To do otherwise would allow the perpetrators of this crime to have truly achieved their victory.

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