James Hackett was named President and Chief Executive Officer of the Company in December 2003, and Chairman of the Board of the Company in January 2006. Prior to joining the Company, Mr. Hackett was the Chief Operating Officer of Devon Energy Corporation from April 2003 to December 2003, following Devon's merger with Ocean Energy, Inc. Mr. Hackett was President and Chief Executive Officer of Ocean Energy, Inc. from March 1999 to April 2003 and was Chairman of the Board from January 2000 to April 2003. He served as Chief Executive Officer and President of Seagull Energy Corporation from September 1998 until March 1999 and as Chairman of the Board from January 1999 to March 1999 prior to its merger with Ocean Energy. He currently serves as a Director of Fluor Corporation and Halliburton, and serves as Chairman of the Federal Reserve Bank of Dallas.
Question: How is technology changing the oil business?
Jim Hackett: Well, I think in terms of supply side in particular you have a great example of this is that, I think all of your listeners would know the natural gas is the cleanest burning hydro carbon fuels, so you actually want to find as much natural gas as you possibly can on the world. Turns out neither party has necessarily figured that out and I think they will by the time the election comes countered to the way I think it is regardless of who gets in, they will favor natural gas, because they need to, because it is made one of the few things that we can actually try to produce nautically that actually is clean burning. The deepest war in history the world, and it has been on discovery channel, national geography, we operate a platform that we least that land on from the Federal Government in the year 2001, we produce almost 1½ % of all the average daily gas demand in United States, natural gas demand in United States for one platform, you know what the size the platform is. It is 2/3rds of a football field on each side and 1/3rd of a football field in terms of it superstructure above the water and it has couple of pipes going down for wells and of sub-sea for installation at 80,300 feet of water and it is producing that kind of gas from that kind of environmental foot print. There is nothing on earth other than oil, gas and nuclear that can create that much energy from that small footprint. So when we talk about environmental, this is 150 miles plus of the coast of Louisiana, Mississippi and Florida. So, you cannot see it, you could not, it is an hour and half helicopter ride out there. That is what you want to have the world doing for you and that tell you what kind of technologies available. Couple of billion dollars, next one will be more than that, because costs have gone up. So, there is also gas to liquids technology, which is actually producing diesel fuel from natural gas, gas to liquid you are also producing gas from coal, which is a bad probably bad answer, it is reversing the efficiency curve I would guess. Gas to liquid is obviously going to be something that - excuse me called liquids kerosene should be another form of energy, but you have also got all sorts of things happening on the consumption side, that I think we continued advance and I think whether it is hybrid engines or smaller cars, stunningly, if we could actually start to think about not buying SUVs not necessarily buy pickup trucks, all that will start to affect that whole consumption equation. Same people have to just again prices are going to make a difference. People are going to start change in behaviors.
Recorded On: 3/24/08