The real risk in the E&P industry is the same as always-failure or the fear of failure-says Tracy Krohn, founder, chairman, chief executive and president of W&T Offshore Inc.

"The way to minimize real risk is to determine how big, how often or how badly you can tolerate the failure," he told Houston Producers' Forum members at a recent gathering.

Krohn cited several perceived industry risks, such as economic ruin-"Fortunately, going broke or bankrupt is no longer a crime," he added-and misperception. For example, the U.S. government prohibits development of new nuclear power plants and has made it nearly impossible to build a new refinery. Yet, Americans "then proclaim it is all (oil and gas producers') fault, a conspiracy to drive up oil prices," he said.

He was asked why he took the Gulf of Mexico-focused company public. "I'm crazy. I'm just nuts," he quipped. Instead, he said, it was a means to access public capital to fund deepwater and deep-shelf opportunities.

Krohn started W&T Offshore in 1983 with $12,000.

Comments