THE ROLE OF THE INDEPENDENT OIL PRODUCER IN TODAY'S MARKET
             Should a poll be taken of the populace of our nation regarding the role of the independent oil producer in today's economy, the likelihood of negative feedback is highly probable. For, most Americans are disgruntled with the "high" price of gasoline and generally feel anyone remotely connected with the oil industry is quite wealth, to the point of being a "fat cat". In the few minutes I have today, please allow me to present an alternative view. Hopefully, you will agree with me that, not only is it is a much more accurate view but is also one in which you now can espouse.
             Granted, the price of gasoline has risen sharply in recent months to record levels. However, it has been less than five years that the price of a barrel of crude oil was approximately $10, a far cry from the current market. And, although I will deal with the pricing issue later in the presentation today, it should be a sensitive consideration due to the expense side of the ledger. For, the oil production related expenses have continued to escalate over the past several decades with no consideration for the available revenue. Within the last three decades alone, the intangible drilling costs of one prospective well has risen almost 300% to approximately $275,000. Thankfully, there is a tax incentive available whereby an explorer can write off those costs, but he is still out the money should the venture be a dry hole. The "lifting costs" of a stripper well in South Arkansas, the outlay to produce one barrel of crude oil into the stock tank, is approximately $20 per barrel. Further, continued environmental safeguards and preventive systems, continue to spiral. Although completely justified, those expenditures add nothing to the value of the crude produced, but are only ancillary expenses which must be absorbed.
             In regard to pricing, oil is an interna
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