press release

Texaco Press Release - Texaco Opposes Crude Oil Anti-Dumping Petition

FOR IMMEDIATE RELEASE: WEDNESDAY, JULY 14, 1999.

WHITE PLAINS, N.Y., July 14 - Texaco today filed comments with the Department of Commerce opposing the anti-dumping and countervailing duty petitions recently filed by a coalition of U.S. oil producers against Iraq, Mexico, Saudi Arabia, and Venezuela. The petitions allege that the four major oil producing countries materially injured U.S. producers by selling crude in the U.S. Gulf Coast and the Midwest below fair market value in 1998 and early 1999.

In a separate letter to Secretary of Commerce William M. Daley, Texaco Chairman and Chief Executive Officer, Peter I. Bijur noted that Texaco has been a vocal proponent of tax and regulatory reforms to maintain the competitiveness of American firms, but that the petitions are counterproductive to these efforts.

"Measures like those sought by the petitioners will only force higher consumer costs, introduce new instability into the marketplace and hurt job growth, while having no material positive impact on U.S. petroleum production," said Bijur.

"There is no doubt that a viable domestic petroleum industry is in the best interest of the United States," Bijur added. "However, the world oil market has dramatically changed since the early 1980's. The market for oil is truly global, with the price of this commodity determined by world supply and demand."

The U.S. oil industry, along with Texaco, has had to cope with extremely difficult business conditions during a period of low crude oil prices of the recent past. These challenges are an inherent part of any commodity based industry, and consumers benefit from the intensely competitive nature of the worldwide crude oil marketplace. To remain competitive, Texaco has initiated plans to contain costs, apply new technology and adjust business activities to operate in this ever changing global business environment while providing customers with reliable and affordable energy.

Texaco believes the increased taxes resulting from these petitions would place an unnecessary burden on consumers and the U.S. economy as a whole, and urges the Department of Commerce to dismiss the petitions.

Updated: July 1999