Edward Cross, Chief Executive Officer, Illinois Oil & Gas Association
There are two popular views on the role of business. The first says the purpose of business is to make money and deliver investor value. The second says we should do those things, but in addition, in order to balance what by implication we are taking out of society in the form of profits, we should pursue a program of good works and philanthropy that is distinct from the business that we actually are doing: a program of “public relations.”
I think these ideas are too simple. First, I do not think a business that only generates money would be a good business. It would not develop people, ideas or markets. In short, it simply would not invest in the future. Business surely is about the long term and not just about tomorrow. Second, responsibility is not something to be added as an afterthought or as a public relations gloss.
Business is about something more complex. I believe a good, successful business is part of society and exists to meet society’s needs. That is the purpose of business at the highest level. Those in business need to make money to reward those who have trusted them with their investments. But they also need to be responsible. I think responsibility comes through what we do and the way we do it, not by adding some extra activity.
Those in business fulfill their purpose by supplying goods and services at prices people can afford and in manners that make the activity sustainable. That is complex, rather than simple, but it essentially is how business really works.
Illinois basin examples. Let me illustrate by discussing a few major oil and gas projects in the Illinois basin, Fig. 1. Two 3,500-ft St. Louis formation wildcat wells were permitted in Saline County, Ill, in early 2025. No other previous tests drilled in the section penetrated strata below 3,200 ft. This activity is ¾ mile east of production in Francis Mills field. Discovered in 1952, the Francis Mills structure has produced more than 500,000 bbl of oil from Mississippian strata above 3,100 ft.
Also, in early 2025, a permit was issued to drill a 6,490-ft Ordivician-Spechts Ferry wildcat well in Franklin County, Ill., Fig. 2. This activity is two 2 mi east of Whittington field. Discovered in 1939, the Whittington structure has produced 5.4 MMbbl of oil from Mississippian and Devonian strata above 4,900 ft.
Finally, three wells were permitted in early 2025 to drill 2,500-ft Ordovician Spechts Ferry wells in Sangamon County, Ill. This activity is one mile southeast of production in Dawson field. Discovered in 1971, Dawson field produces from Silurian carbonates.
The complexity of the process, from the beginning point to first oil production, for these three projects and oil and gas projects across the nation is remarkable, Fig. 3. Companies must manage not only the geology and engineering, all the associated technology of constructing an oil development, and market access, but also all the issues of landowner relations, environmental impact, workforce development, political challenges, and more.
These issues are not add-ons for the people developing these projects. They are not questions of public relations dressed up in language of good works and philanthropy. They are not something done for recognition or to win prizes. They are integral elements managed to make projects viable.
Sustainability is the key for major projects like these and others across the nation. Can companies invest in a manner that will endure over decades to come? Can companies develop and produce oil and gas, then bring them to market without damaging the environment, the people, or the local economies of the places in which they are working? Can companies work with all stakeholders on the basis of long-term, enduring mutual advantage?
The way we work is crucial. Our responsibility lies in our activity and the manner in which we pursue that activity. Responsibility is not additional; it is absolutely integral!
Why responsibility matters. In the oil and gas business, responsibility matters, because the world needs energy, and that energy is only going to be developed by business.
We will be able to maintain the flow of energy the world needs, only if companies responsibly explore, develop new paths in science, train people, and invest. Given the timescales involved, they can do that, only if they carry a degree of trust from the communities and societies of which they are part.
To understand why such trust is so important, it is necessary to look at the facts behind the focus on energy security that has developed in the United States.
First, the demand for energy is growing. Quite simply, global demand for energy will continue to increase dramatically, driven in large part by the desire of developing countries to achieve economic prosperity. Secure, affordable, accessible and ample supplies of energy are essential to both economic growth and a reasonable standard of living.
The U.S. Energy Information Administration (EIA) projects that by 2050, world energy demand will increase 24%, and 50% of that demand will be supplied by oil and natural gas. About 70% of the increase is going to be in developing countries, and those countries rely primarily on lower-cost fossil fuels. Given their convenience of use, oil and natural gas will be the most important.
Second, there are no viable alternatives to hydrocarbons. Alternative energy sources have important roles to play, and their use will grow in those specific areas where they are abundantly available, but none of the alternative energy sources will meet total energy needs.
Third, there are more than ample oil and gas resources available in the world to meet energy demands. However, these oil supplies are in areas that are not always friendly to the market. Nearly 70% of the world’s oil consumption is traded. The Asia/Pacific region, particularly China and India, accounts for a significant portion of global oil demand, with the region's share expected to continue growing. The Asia-Pacific region is the greatest consumer of oil and oil products globally. While the U.S. is the largest oil producing nation in the world, two areas account for a significant portion of global oil production: Russia and the Middle East with the Middle East, alone, accounting for nearly 32% of global oil production. The fact that the world depends on supplies from volatile countries makes consumers nervous.
All these factors are creating a sense of insecurity and anxiety. The evidence suggests consumers want energy supplies that are safe and secure.
Energy security strategy. How does the United States secure access to sufficient quantities of reliable, affordable energy in an environmentally responsible manner?
If our nation is to achieve energy security, and very importantly, maintain economic competitiveness and not let its standard of living slip, we need a well-reasoned, fact-based comprehensive energy strategy that is fully integrated and consistent with U.S. foreign policy.
Let me briefly outline what I believe are the major components of an energy security strategy. First, the cheapest and most plentiful form of new energy is efficiency and conservation. Reasonable progress has been made in the past. In fact, the U.S. economy has grown by more than 285% since the 1970s while the country’s energy use has increased only about 48%.
The second key component of an energy security strategy, in my opinion, is diversity of crude oil and natural gas supply. Here in the U.S., unconventional shale formations, such as the Bakken, Spraberry, Wolfcamp, Bone Spring, Barnett, Woodford, Marcellus, Haynesville, Fayetteville, and more, hold great potential. In Illinois and across the nation, smaller conventional discoveries continue to increase oil and natural gas output. Putting together long-term solutions to economically produce the multibillion-barrel, long-life reserves of newly discovered sources is how we will help meet America’s energy demand.
The third key component of a U.S. energy security strategy is technology. Technology is vitally important to increase the supply of energy, to moderate demand, and to protect the environment. Technological developments, such as 4-D seismic, horizontal drilling enhancements, and multistage frac improvements, are helping pave the way to finding and developing new oil and natural gas reserves in the U.S. and around thew world.
The fourth key component of an energy security strategy is investment. It is necessary to invest in as many sources of supply as possible, as well as to invest in the infrastructure to bring that supply to market. In both cases, it is important to develop diversity so that, as far as possible, no one relies on a single source of supply, delivered by a single route.
Finally, public policy is very important. State and federal governments should set the right incentives and enable the market to operate effectively. It simply makes no sense to further hinder industry’s ability to produce domestic oil and natural gas by restricting access to new areas, unfair taxation, regulation, or other restrictive policies. Governments should remove barriers to developing our substantial domestic oil and natural gas resources and to the flow of capital. The element of society that responds to incentives is business.
We are experiencing a time of dramatic and rapid change in the oil and natural gas industry. The pace and complexity of that change are sure to increase. But dramatic change in the oil and natural gas industry is touching everyone, because our country’s economic prosperity and competitiveness in large part depend on access to ample supplies of affordable, reliable energy.
We must continue to educate the public, media, and policymakers about our industry’s resolve to responsibly improve our nation’s energy security. As John D. Rockefeller once said, “Next to doing the right thing, the most important thing is to let people know you are doing the right thing.” WO
EDWARD CROSS is CEO of the Illinois Oil & Gas Association. He is also an executive board member of the Domestic Energy Producers Alliance and Partnering Society member of the Council for a Secure America. Mr. Cross is a licensed geologist and graduate of Southern Illinois University.