Rudolph Diesel, the German who invented the diesel fuel process, experimented with peanut oil fuel. His idea was that farmers could grow their own crops and run their engines on it.

He came over after World War II. He was in Germany learning from engineers when he was 16 years old. They taught him the method, and he did it for a while during the 1970s oil crisis. About a year and a half ago we were talking about the high prices and he said he might have to make his own fuel. I asked him what he was talking about, and he showed me how to do it. I did it for my family vehicles, and for friends, and it worked great. I thought I can actually teach people how to do this.

That's really optimistic. But it's the same thing as when we heard a president say we were going to go to the moon in a decade, and we did it.

The question is whether prices are sustained -- then the burden of oil subsidies comes under stronger focus. It needs careful political consideration to avoid a backlash.

The national oil companies still want to acquire some expertise so they will outsource more, but not totally.

Now that the baseline of demand has returned and (oil) prices returned to around $20 to $21 a barrel, the environment is such that there will be a return to exploration, and Schlumberger will be a big beneficiary.