Shell boss stumps for off-shore drilling

In Salt Lake City, he says development is a must to meet needs

Shell Oil president John Hofmeister says it is possible for this country to approach energy independence but to do so it must embrace new fuel technologies and rethink existing policies preventing additional oil and gas development.

Hofmeister was in Salt Lake City last week as he neared the tail end of a 50-city “listening tour” to address the public’s growing frustration and concern with high energy and gasoline prices, and record oil company profits.
He used the occasion to contend that there is an abundance of oil and gas resources available but public policy has declared it off-limits, noting that 85 percent of the outer continental shelf holding more than 100 billion barrels of oil and gas is closed to off-shore drilling.

“Right now, 66 percent of our daily [oil] consumption comes from imports, while we’re refused the opportunity to develop our own resources,” Hofmeister said. “And in denying access, it is causing us to be more dependent” on foreign sources of oil.

While acknowledging consumers’ anger over oil company profits, he argued that Shell is making good use of that money. Shell Oil’s parent company, the Hague-based Royal Dutch Shell, reported in late July that its income rose 18 percent in the second quarter of this year, to $8.7 billion, compared with $7.3 billion a year earlier.

Salt Lake Tribune