But this is more what we expect

Claiming that world demand for oil will vastly outstrip production, Exxon-Mobil CEO Lee Raymond this week told an OPEC meeting in Vienna that

[o]il producers' struggle to keep up with rampant global demand growth will only be won with access to oilfields now off-limits....

"The future need for petroleum energy will be such that restrictions in whatever form and wherever imposed, will jeopardize access to adequate energy supplies to world consumers," he said.

In other words, "let us drill any where we damn well want and hang the consequences or you're all screwed." And just in case you might think there is an alternative, Raymond not only called for the removal of all "restrictions" on oil production, he also slammed the idea of "energy independence."

"Calls for energy independence started around the Nixon administration. Energy independence was a flawed concept then and it is a flawed concept now," he said. "We should be focusing on energy interdependence."

Whatever that means. Of course, the idea of energy independence in any industrialized nation would require not new supplies of energy but more efficient use of existing supplies, development of renewables, and, overall, reduced consumption. Or, more bluntly, using a lot less of what Mr. Raymond makes his obese paycheck peddling. Could that have something to do with his attitude?

Perhaps. After all, he also said there is a problem of stretched refining capacity,

after companies shied away from the downstream sector marked by high costs and unreliable returns. Refineries across the globe are now running at near full steam to match rising consumption, though few new plants are in the works.

"The question is not what profit margins are today, but what will margins be like in 12 to 15 years?" Raymond said.

Consider that carefully. By Raymond's own argument, this is his argument remember, the oil industry can't meet coming demand because there aren't enough refineries to do the job with predictably disastrous economic consequences - but unless they can be guaranteed a fat enough profit not only now but 15 years down the line, they're not going to do a damned thing about it.

The efficiency of the free market at work.

Footnote: Some more "restrictions" I expect Mr. Raymond would wish to be free of:

Texas fined Exxon Mobil Corp. $150,462 this week for violations of air pollution regulations at the company's 363,000 barrel per day (bpd) refinery in Beaumont, Texas.

According to a statement issued by the Texas Commission on Environmental Quality the violations were discovered during investigations in 2002.

The commission said the violations include failure to limit emissions during refinery malfunctions, failure to repair and perform monitoring of equipment, recordkeeping failures and failure to install equipment.

Thanks to the Daily Grist for both items.