The day I wrote this, the standard-bearers of the American oil industry strode into a Senate committee chamber to face the American people and justify their "outrageous profits." Their inquisitors asked why they were not drilling enough to supply the U.S., and why very high gasoline prices could not be stopped, with high heating bills to come. It's a volatile mix, much like throwing gasoline on a fire. Thanks to all the TV cameras present, the political posturing in the room far outweighed anything the executives of ExxonMobil, BP, Shell, Chevron and ConocoPhillips had to say. A couple of weeks before this hearing, the Pew Research Center for the People & the Press released its latest study of the public's views of the federal government, the media, the Republican and Democratic parties, the Department of Defense and other major U.S. institutions. Some 2,006 adults were polled in October. Only 20% of these people said they had a favorable view of oil companies-down from 32% in 2001. Well. If oil and gas demand is higher for longer, and prices are too, then what is the public to do? Look at the outcry from Main Street, Congress and the media just because the price of gasoline was a startling 38 cents per gallon higher in November than it was the same month a year earlier! A supposedly free-market-loving Congress will try to placate a spoiled and uninformed public that decries oil profits, but ignores the much higher profits at Citicorp and other huge investment banks. It doesn't help that industry does not speak uniformly about energy matters. The great, headline-grabbing debate on peak oil illustrates this all too well. Princeton guru and author Kenneth Deffeyes-a former colleague of M. King Hubbert of the famous "Hubbert Curve"-wrote in Time magazine last month that global output peaked around Thanksgiving. But in a press conference that got worldwide play, Saudi princes and ExxonMobil said there is plenty of oil for the next 50 years. We only need to make an upward reserve revision of 1.5% annually to replace production, according to Apache executive vice president Mike Bahorich, speaking at the annual meeting of the Society of Exploration Geophysicists recently. Less than 25% of new reserves come from discoveries, he said, with the balance from adjustments, revisions, extensions and new pools drilled in existing fields. University of Texas Bureau of Economic Geology head Scott Tinker made many of the same points at the IPAA's annual meeting a few weeks earlier, and cited the enormous potential of the U.S. oil shales and Canadian tar sands. Meanwhile, Americans are benefiting hugely through energy-company shares held directly or indirectly in personal investment accounts, retirement accounts, mutual funds, and insurance investments, points out Michelle Michot Foss, chief energy economist at the University of Texas. Energy-company profits have been sustaining general stock-market performance, adding positive returns to index funds. "At times like this, we are amortizing experiments in energy diversification," she says. "Everyone with a new, promising technology or process, whether for energy production and supply or energy efficiency and conservation, is getting a leg up on business planning. "We need periods of stronger profitability to lure new entrants into the energy sector and encourage risk-taking." When they take that risk, what commodity prices might they expect? Analyst Lloyd Byrne of Morgan Stanley & Co. Inc. says the firm recently raised projections for North American natural gas prices, both near-term and sustainably. "Our Henry Hub natural gas price expectations are $8.50 per thousand cubic feet in 2005 and 2006, $7 per Mcf in 2007, and a 'normal' (i.e. 2008 and beyond) price of $6.50 per Mcf." Colleague Doug Terreson raised his projection for crude oil as well. His new estimates are $55 per barrel for 2005 (up from $50), and $50 for 2006 (unchanged). Longer-term, he sees $45 for 2007, 2008 and beyond (up from $40 per barrel). The higher estimate for oil prices at normalized conditions reflects expectations of rising costs to find, develop and produce petroleum in coming years. Note that he cited costs of finding more supply, rather than mentioning rising demand. Of special note to the industry, Hart Energy Publishing has joined forces with Energy Central to provide new solutions for oil and gas employers and job-seekers. Additional information about our new joint venture is featured on oilandgasinvestor.com, in industry advertising and through other media. So, if you are looking for qualified personnel at all levels or seeking a new position, give us a try-www.energycentraljobs.com.