Released the same year as The Assassination Of Jesse James By The Coward Robert Ford and No Country For Old Men, There Will Be Blood proves American cinema is healthy and vibrant, which is reassuring considering the current CGI 3D obsession. In simplest terms, Paul Thomas Anderson's epic drama is The Treasure Of The Sierra Madre, as seen through the eyes of Robert Altman (the film is dedicated to him). It's a fascinating look at the American psyche, cold-hearted and serious, yet devilishly entertaining.

The story encompasses a lifetime of greed and will haunt you long after the credits role. Daniel Day Lewis plays Daniel Plainview and the story follows his development from miner to oil tycoon, with his son ("and partner...") H.W. (Dillon Freasier). It's a parable on capitalism, in conflict with religion (embodied by Paul Dano playing young preacher Eli Sunday).

Some may have found Anderson's previous films to be too obvious and rigid (Boogie Nights, Magnolia), but no-one could deny his skill behind the camera. There Will Be Blood feels like a natural growth from those earlier films, along with a welcome playfulness here, despite the cynical story (neither capitalism nor religion come out of it well!). It has an abstract nature throughout, frequently underlined by the incredible score from Jonny Greenwood. The music is organic and expressive, using all sorts of unusual sounds (one sequence of Daniel's growing oil field has a wonderful rhythm) to create a theme often abrasive and more akin to a horror film. The changing tone unusually brings your attention to that score and for good reason. Take the very opening scene, a shot of the mountains before focusing on Daniel, mining alone. It's accompanied by a horn that is almost a long shriek. If you knew nothing else about the story at this point, you might already consider Plainview a monster.

And he is a monster. Daniel Day Lewis is astonishing as Plainview. He seems to become him utterly, that every movement, every tick is beyond acting. You will especially note his distinct, measured tone of voice, based somewhat on John Huston, which is so hypnotic to the characters and us the viewer. Not only is he a monster, he is such an accomplished creation that the film, so centred on his performance, could be classed as Horror from a certain perspective.

A great performance needs able support and Paul Dano as Eli Sunday is fantastic. He is so much younger than Daniel Day Lewis, but he holds his own with a confident turn as the manipulative preacher. He is softly spoken, yet with a penchant for sermons where he appears possessed, full of fire and brimstone. The film hinges on their relationship over the years and it is fascinating to see them locked together. Both men are opposites, but both manipulative and see the hypocrisy in each other. Finally there is the boy, H.W., who represents an enigma in Daniel, in that this is the only person in the world he could possibly love and therefore is the only real source of redemption. Young Dillon Freasier is excellent. He and Day Lewis complement each other so well that the relationship is convincing.

It's pacier than you might expect, and a dark, epic plot, but beautiful. Paul Thomas Anderson's own screenplay, developed from the novel Oil! By Upton Sinclair is a nuanced masterpiece. While Daniel Day Lewis won the Academy Award for Best Actor, Anderson lost out on Best Adapted Screenplay to the Coen's No Country for Old Men. You can debate the choice, but it just goes to prove what an incredible year that was!

The film is perfectly realised visually. Some shots might stand out as being particularly breathtaking, but Robert Elswit's photography is consistently striking throughout, while Anderson's direction is subtle and focused. He wisely lets Daniel Plainview do all the talking and while there are uncompromising moments that pack a punch -like a oil drill bit to the head, literally(!)- he resists turning them into set-pieces and doesn't even resort to zooms, quick edits or slow motion. It's such a change from his usual style of bringing attention to the craft, though there isn't anything wrong with that approach. For example, Boogie Nights had a raw Scorcese feel about it and Magnolia even had a musical number to emphasise its story of shared fate. These are fine films and when I say There Will Be Blood is better, I mean only in a realisation of a larger ambition.

What few critics there are of There Will Be Blood seem to find the ending a challenge amongst other things, or even a betrayal of what has gone before. I argue they were not watching closely enough and the brilliance of that closing scene is in the contrasting absurdity. Well, if you do follow the theory this is a Horror film, consider that the best of that genre usually do have one moment of pure madness. It is a terrifying scene, yet you may laugh nervously, as the film is brought to a simple and effective close with a single line of dialogue. If you do find it odd, just let it simmer on your mind for a couple of days and hopefully you'll see what was intended; that all the threads of a life dedicated to obsession, hatred and existing on the edge of madness, are so beautifully tied off.

As I said before, The Treasure Of The Sierra Madre was a proud influence on Anderson, but it also bears a resemblance to Citizen Kane and occasionally has a Kubrick feel to it, though warmer. That this is indelibly Anderson's film and can stand to be compared with the very best, is testament to a visionary director who has clearly made his Masterpiece and struck black gold in possibly the best American film for 20 years.