Finance unit's challenge:

Parlay profits in financial marketsBy Marcia Meermans

Even during a time of low oil prices, there's morethan one way to turn a profit.That's the philosophy of the new Standard OilFinance unit, which came onstream in December.

The unit was organized to make money for the com-pany through financial trading in the U.S. and abroad.

Traders buy and sell foreign currency, as well asfixed-income securities (financial instruments like notesand bonds that enable a borrower to obtain a fixed rateof return on investment).

Standard Oil Finance also:• Plans and implements corporate and business

group financial strategies.

• Secures capital needed by the company.• Manages corporate pensions and insurance programs.• Maintains a good relationship with the investment

community.• Provides in-house banking services for efficient cash

management within business groups.The move into new financial markets was part of

recent plans to refocus on company strengths and buildon experience.

Also. Standard Oil was able to draw on the expertiseof E. John P Browne. company executive vice presidentand chief financial officer. who established the unit.

During his tenure as BP's group treasurer. Browneorganized a similar operation in 19i15. BP Finance

Turn to PARLAY, 4

Dear Colleagues:

As we all know, 1986 was a hectic year, but weaccomplished a great deal together and I thankeach of you for your fine efforts.

Our year-end earnings reflect the ups and downsof the industry. On one hand, we have seen dra-matically lower oil prices. On the other, we areseeing the first fruits of measures we have taken toimprove our performance.

We begin the new year with a strong balancesheet, well-positioned to take advantage of busi-ness opportunities. I am confident that, with yourhelp, the company faces a better year in 1987.

Sincerely,

W~/~Robert B. Horton

January/February 1987· Vol. 2, No.1

Exploration '87:smaller budget,narrow focusBy Jim Kosowski"8 tandard Oil's exploration effort

for 1987 is one of the com-pany's best-kept secrets," says

Tom M. Hamilton, senior vice president,Exploration for Standard Oil ProductionCompany (SOPC).

"We will participate in over 30 percentmore new wells in 1987 than in 1986,in some very exciting prospects."

"We have been more successful thanwe anticipated with our joint venturein British Columbia in western Canadaand will continue our efforts there.And we will likely announce more inter-national activities.

"All that on a smaller budget than in1986," Hamilton says.

SOPC Exploration was restructuredorganizationally and operationally in1986.

"The bottom line for any explorationprogram is how much it costs to findand develop oil and gas," explainsHamilton. ''The new organization of

Turn to EXPLORATION, 3

Kicking drugsand alcoholProgram helpsemployees pulllives togetherBy Colleen Walsh

Recent government studies point to agrowing problem facing corporateAmerica: drug and alcohol abusethat affects the workplace.

Standard Oil renewed its commitmentto help employees kick the drug andalcohol habit in its revised alcohol anddrug abuse policy released in February1986.

"The new policy reflects the growingawareness that alcohol and drug abuse isa significant issue in industry," saysChristopher M. Farage, clinical psycholo-gist and manager, corporate MentalHealth and Behavioral Services.

"It also reflects our concern for theemployee, and our willingness to helpsubstance abusers recover," he adds.

Standard Oil is not alone in its fightagainst alcohol and drug abuse. Govern-ment reports estimate that 7 to 10 percentof the American population regularlyuses illegal drugs.

Translating that figure into the U.S.

Turn to PROGRAM, 5

Ceramics group woos high·tech market

Photo by Ki Ho Park

Service pinsrevampedKathy Cooke, who cele-brates 25 years withStandard Oil in February,shows the redesigned 25-year service pin, Cookeis a cash operations andcontrol clerk for Sohio Oil.

The 25-year pin includestwo diamonds - one foreach decade, and a blue5-year stone. For acloserlook, and more on all theredesigned service pins,turn to page 8.

"Now that manufacturers know sub-strates can be made of better materials,they can't get their hands on them fastenough," says Betsy Poole, manager,Prototype Fabrication, ElectronicCeramics. Turn to CERAMICS, 8

today, aluminum oxide.Heat is a problem of increasing concern

to the electronics industry as circuitsare made smaller and closer together.Heat can damage a circuit if not effectivelydissipated through a su bstrate.

By Jim Marino

Technology breakthroughs atStandard Oil Engineered MaterialsCompany have led to the creation ofthe Electronic Ceramics division.

Its goal is to broaden Standard Oil'spresence in the electronics industry andto establish the company as an importantsupplier of key components to segmentsof that industry.

, David L. Schultz has been named vicepresident and general manager of thenew division, headquartered in NiagaraFalls,N.Y.

The division will invest Sil.S million intwo facilities to produce specialtymaterials for the microelectronicsindustry. specifically substrates andplanar diffusion sources.

Substrates - the tiny support platformsfor silicon chips on circuit boards usedin products like calculators, radios. andtelevision sets - will be made of siliconcarbide and aluminum nitride.

Both substances shed heat more quicklythan the most common substrate material

II Trading roomopens door to inter-national finance

D Washingtonupdate: issues in '87

EJ Who leads packin world oil production?

Earnings up for quarter, down for yearFinancial Highlights Three Months Ended Twelve Months Ended

December 31 December 31

Dollars in Millions 1986 1985 1986 1985

Revenues 52,264 53,688 510,022 513.818

Income before unusual items,interest. income taxes, and 5 232 5 610 5 713 5 2,874extraordinary item

Net income (loss) 5 31 5 (771) 5 (345) S 308

Per share of common stock (in dollars)Net income (loss) 5 .13 5(3.29) 5 ( 1.47) $ 1.31Cash dividends 5 .70 S .70 5 2.80 5 2.80

Capital expenditures 5 414 5 561 5 1,651 5 2.484

S30-million charge explained

As part of a long-term debt restructuring plan,Standard Oil took an after-tax, S30-millionextraordinary charge against 1986 fourth-quarterearnings.

The charge covers a premium paid by thecompany to retire some of its high-interest, long-term debt.

While the charge reduces earnings in the currentquarter, Standard Oil will save about 515 millionin aftertax interest in 1987 with additional savingsin later years.

An extraordinary charge is a nonrecurring costto a company.

The restructuring was financed with proceedsfrom sales of certain coal, copper and industrialproducts properties; the issuance of new, lower-cost debt, and by converting some short-termsecurities into cash.

Earnings for the first three quarters of 1986will be restated to reflect the effects of debtrestructuring.

Fourth-quarter 1986 showed anet income of 531 million, butthe year had losses of 5345million. Excluding the company'sextraordinary item and specialcharges from both periods, fourth-quarter earnings were 567 millionand the year's earnings were 5499million. These results are well below1985 primarily due to lower oil prices.

Standard Oil's special charges forthe year accounted for the disposalof certain oil and gas explorationleases, metals mining properties, coalreserves, and industrial productscompanies.

"Putting behind us these significantspecial charges and the resultinglosses has prepared Standard Oil wellfor the energy environment we expectin the next few years," Standard OilChairman Robert B. Horton said.

"As a result:' he added, "the com-pany should perform better in 1987 ifoil prices only average the same asin 1986.

"We have positioned the companyto concentrate on its core businesseswhile working from a strong

balance sheet with good liquidityand reliable cash flow."

What's on tap in D.C. this year?TRW president joins board

Joseph T. Gorman, presi-dent and chief operatingofficer of Cleveland-basedTRW Inc., has been elec-ted to Standard Oil's boardof directors.

Gorman, who also serveson the boards of directorsat Society Corp. and

Gorman Society National Bank ofCleveland, joined TRW in 1968.

During his tenure with the company, Gormanheld previous positions as executive vicepresident, responsible for the Industrial &Energy Sector, and vice president and generalcounsel of the firm.

Endicott on scheduleWork is 'proceeding on schedule for StandardAlaska Production Company's Endicott oilfieldproject. located offshore in Alaska's BeaufortSea.

The Base Operations Camp. where about150 employees will live and work, was scheduledfor completion January 31. A February construc-tion start is expected on a 24-mile pipelineto carry crude oil from the gravel Endicottisland to the trans-Alaska pipeline onshore.

Fourteen of the island's planned 100 wellshave been drilled.

Construction on Endicott's 45-acre MainProduction Island began in March 1985. AllEndicott production facilities are scheduled tobe finished in late 1987. The field is expectedto yield some 350 million barrels of oil.

Lisburne oil flowsThe lisburne Field on Alaska's North Slopebegan producing oil in mid-December.

Standard Oil Production Company (SOPe),which has a 20-percent interest in the field,joined forces in August with AReO AlaskaInc. (the operators) and Exxon Co. USA onthe $l.7-billion project.

The lisburne Field contains an estimated325 million barrels of recoverable oil. SOPC'sshare of net reserves will amount to about 57million barrels.

StandardOilNowStandard Oil Now is published bimon~ly for employees andretirees of The Standard Oil Company and its subsidiaries.

All contents copyright ~ 1987, The Standard Oil Company.

For permission to reprint or adapt editorial matler.address correspondence to Editor, Standard Oil Now.200 Public Square 35-J. Cleveland. Ohio 44114-2375.Phone: (216) 586-5100.

Editor Staff WriterMarcia Meermans Colleen Walsh

Staff Associate Editorial AssistantJim Marino Diane Rodgers

Standard Oil is an equal employment opportunity/affirmativeaction employer.

2 Standard Oil Now' January/February

Standard Oil Now is pleased tolaunch this "Issues Update"column to keep you better in-formed about legislation as itaffects the company.

By Bill Rountree

1986 elections that gave theDemocrats control of theSenate will significantly alterReagan Administration. plans forthe rest of the Presidential term.The oil industry will feel the im-pact of some of these changes.

The 100th Congress, whichconvened Jan. 6, faces several criti-cal national policy decisions in1987.

Issues that specifically affectStandard Oil include: taxes, oil.exploration incentives, access toFederal land, the environment,trade and foreign policy, anddomestic regulatory policies.

• On the Federal budget &taxes: The 1987 budget deficitapproaches 5170 billion, yet theGramm-Rudman-Hollings lawrequires Congress to meet a bud-get target of SI08 billion. TheAd mi nistra tion favors budget-deficit reductions and budgetcuts, and remains adamantlyopposed to tax increases for away to balance the budget.

Congress will not initiate taxincreases unless urged by the Presi-dent. However, Democrats aretraditionally reluctant to cut theFederal government budget.

There is a good possibility thatthe company will face an increasein corporate taxes, an oil importfee. or other energy taxes. Anational sales tax on all purchasesmay also be considered.

In addition. the company willbegin to feel the effects ofthe 1986 Tax Reform Act. (See"Tax bill: mixed effects onStandard Oil," November/Decem-ber Standard Oil Now.)

• On oil exploration incentives:The oil industry continues to reelfrom OPEC pricing policies.Crude oil prices are depressed to

a point where domestic explora-tion and production are substan-tially impaired.

Both Congress and the execu-tive branch are evaluating possiblegovernment actions to help theoil industry. These include an oilimport fee and tax credits.

The company actively seekslegislation to provide tax creditsfor exploration and productionactivities in deepwater and hostileenvironmental areas. such asAlaska.

• On Federal land access: Thecompany is leading a total oilindustry and general businesscommunity effort to enact legis-lation permitting exploration.development, and production onthe coastal plain of the ArcticNational Wildlife Refuge in Alaska.

Many geologists- inside andoutside the company - agree thearea has significant oil and gaspotential. If true, U.S. relianceon imported crude oil could bedramatically reduced.

• On environmental issues:Standard Oil Production Com-pany could face billion-dollarcosts if legislation is passed thatclassifies cuttings (fragments ofrock dislodged by a drill bit) anddrilling mud (liquid - sometimeschemically based - used to floatcuttings to the surface of a well-bore) as hazardous wastes.

If enacted, the company couldpay more than SI billion the firstyear, and 565 million annually.Part of the high costs could re-sult from expenses to package andtransport oil field waste fromAlaska to approved sites in theLower 48.

Other environmental issuesfacing the company include im-plementation of the recentlypassed Superfund legislation.(See SUPERFUND, 4.)

Acid rain legislation understudy could place severe restric-tions on the use of high-sulfurcoal. Restrictions on high-sulfurcoal could cause Old Ben CoalCompany to lose many of its util-ity customers.

The legislation could also meanadded environmental costs atKennecott's smelter operationsand for Sohio Oil because of re-finery emissions and the possibleneed to desulferize diesel oil.

Subsidence is another issue fac-ing Old Ben in '87. When a coalseam is mined underground, theearth's surface above that areamay drop, or subside. Environ-mentalists are lobbying to change

Federal policies on longwall min-ing - a type of mining in whichsubsidence occurs shortly aftercoal is mined.

• On trade and foreign policy:With a continuing trade deficitof more than SI20 billion. andincreasing foreign competitionproblems in the American steel,textiles, and oil industries, weexpect Congress to seriously con-sider more protectionist tradelegislation early in 1987.

This raises the specter of aphilosophical confrontation withthe free-market approaches ofthe Reagan Administration.

The outcome of any trade legis-lation or sanctions could affectseveral Standard Oil businesses,including QIT-Fer et Titane,Kennecott. and Standard OilChemical Company.

QIT, for example, is the world'slargest single supplier of titaniumfeedstock for pigments (used inpaint, paper and plastics). In addi-tion, QIT has interests in SouthAfrica.

Kennecott has been hit by tradeimbalances, triggered by over-production of copper in third-world countries. When moderni-zation of the Bingham Canyonmine in Utah is complete. Kenne-cott expects to be one of thelowest-cost domestic copperproducers. This should enable thecompany to better compete withforeign imports.

And operations at Standard OilChemical would be influenced byany new trade regulations sincethe company licenses its acrylo-nitrile process to many foreigncountries.

• On domestic regulatory poli-cies: Proponents of retail divorce-ment will get a push from theDemocratic-controlled Senate.A bill will emerge in the Senateearly in the year. and may gainsteam in the House. Divorcementwould prohibit or restrict refinersfrom operating retail servicestations with their own employees,versus independent operators.

Also, our expanded financialactivities mean the company willbe more inVOlved in Securitiesand Exchange Commission regula-tory policies and anticipatedchanges in banking laws.

1987 will prove to be a busieryear than usual in Washingtonfor the company.

William C. Rountree is vice presi-dent, Federal Government Affairsin Washington.

Exploration '87: smaller budget, narrow focusContinued from page l.the Exploration Department will betterallow us to take advantage of oppor-tunities and lower exploration costs intoday's environment of depressed oilprices."

Organizationally, SOPC's worldwideexploration program now is conductedfrom Houston.

The Frontier & International Division(FlO) is responsible for exploration inAlaska, the western coast of the UnitedStates and all foreign locations.

The new Continental & OffshoreDivision (COD) is responsible for explor-ation in the Lower 48 states. COD is acombination of the former ContinentalDivision in Dallas and the Gulf CoastDivision in Houston.

Operationally, the exploration budgetwill be IS percent lower in 1987 than in1986, when it was 60 percent lower thanin 1985.

Fewer layersToday there are about 300 employeesin Exploration-about half the number of

employees in June 1982.Hamilton says one advantage of the staff

cut is fewer levels of management."We have streamlined the organization

by four levels of management in some areas."Because our Exploration staff is located

in Houston, we have much greater flexi-bility with our employees. As we developnew areas of exploration activity, wewill move people onto those projects andoff projects that are winding downwithout having to relocate them from cityto city. That means we can focus muchmore quickly on areas of interest withouthaving to uproot our employees.

"Our objective is to be profitable,"Hamilton says, "not replace Prudhoe Bayproduction, which is expected to startits decline in 1988.

"To do that we are concentrating on ex-ploration areas where we are among theleaders in technical expertise and aregenerally well-positioned competitively."

Leases that did not fit those criteriawere released in 1986 in a major writeoffof assets.

SOPC has reduced the number of leased

acres from about 4 million to about2 million.

"By releasing leases we gained tax bene-fits and we will save the yearly rental thatwe would have to pay if we kept them,"Hamilton says. .

He notes that SOPC also has reducedits drilling costs substantially.

"We expect drilling costs to be aboutS2.2-to-52.3 million per well in 1987,down from about 54 million in 1986 andmore than $5 million in 1985."

The lower costs are due to a combin-ation of factors:• Drilling costs are down industrywide.• SOPC is exploring in areas that areshallower and easier to drill.• SOPC is drilling wells faster and morecost-effectively than ever before.

Appraisal group formedA new concept for SOPC involves theNorth American Appraisal Group (NAAG),formed during the restructuring and partof FID.

The group of 21 professionals is chargedTurn to EXPLORATION, 8 Hamilton

Where the action is: exploration recapStandard Oil Production Company-(SOPC) has a full slate of knownattractive "prospects" to explore in 1987and in several years to come.

A brief synopsis of current andplanned activities follows.

• Alaska - SOPC is participatingin a Tenneco-operated well currentlydrilling in the Beaufort Sea, northwestof Prudhoe Bay.

Standard Oil, along with BritishPetroleum and Chevron, has drilled awell on Arctic Slope Regional Corp.land in the Kaktovik area of the ArcticNational Wildlife Refuge (ANWR).

ANWR holds the potential for largecrude oil discoveries. Future drillingand potential development of ANWRis now an issue in the Federal govern-mentand before Congress. Environ-mentalists are lobbying against ANWRdevelopment, despite the industry'sproven record in developing similar

Arctic oilfields."sorc is a leader in Alaska, thanks

to our exploration and production tech-nology and our strong geologic infor-mation base," says Tom Hamilton, SOPCsenior. vice president, Exploration.

• Gulf of Mexico- SOPC plans toparticipate in 13 well starts in the Gulfin 1987. Most of those will be in thePlio-Pliestocene or "flexure" trend inwater more than 600 feet deep.

"The Gulf is probably the mostactive offshore basin anywhere in theworld. The flexure trend is the hottestoil play in the industry right now andwe are one of the leading companiesin that trend.

"In addition to the 'f1ex' trend. wewill drill one well in the Norphlet trenp,off Alabama's coast near Mobil.e Bay,·where we have already announced onesignificant gas discovery.

"The Norphlet has the potential to

yield several major gas fields and over-all is the highest potential gas playpresently underway in the U.S.,"Hamilton says.

• Lower 48-0nshore, SOPC willparticipate fully or in part in 27 wells:in states along the Gulf Coast, inOklahoma in the Ouachita Overthrust,in Wyoming's Wind River Basin, in theMagic Area near the New Mexico-Arizona border, and in California'ssouthern San Joaquin Valley.

In addition, SOPC will participatein Gulf Coast states in 53 wells withQuintana Petroleum Corp. in a jointventure. Quintana is the operator.

"Our Quintana joint venture hasheen very successful since it began inJanuarY'J984," Hamilton notes. "We.will continue to look for:other strongindependent operators for possiblejoint ventures:'

• Canada-SOPC will participate in

as many as 16 wells with CanadianHunter in the gas-prone Deep Basinof British Columbia.

"Our joint venture with CanadianHunter has been technically moresuccessful than we anticipated,"Hamilton says. "Although it is still veryearly, it appears that the amount ofproducible gas we are discovering ishigher than we anticipated:'

• Jnternational- In 1987, SOPC willdrill its first two to four wells in theArabian Gulf, offshore Qatar. The com-pany reached its production-sharingagreement with Qatar in 1985 encom-passing 3 million offshore acres.

"Our ability to find extremely largeoil and gas reservoirs in North Americais limited," Hamihon says. "O'urinterniltional effort gives us an oppor-tunity to look at bigger targets withminimal upfront costs to sope'

Boards blend management skills

Chemicals: four new markets?

Busi~ess boards that will blendsenIor management expertIsefrom various husiness groups were setup Jan. I at Standard Oil ProductionCompany and Sohio Oil Company.

The boards, which report to theManagement Committee, areresponsible for the overall conductand development of their respectivebusinesses.

Similar boards are being consideredfor the company's other businessgroups.

Board members will help formulatestrategies, set objectives, au thorizemanagement actions, monitorbusiness group performance, andensure management accountablility.

Members include:

Standard Oil ProductionCompany (SOPC)

Richard A. Braybusiness board chairmancorporate executive vice president

E. John P. Brownecorporate executive vice president

William J. Johnsoncorporate senior vice presidentand president, SOPC

Jerry D. Bullocksenior vice president, SOPCProduction

Thomas M. Hamiltonsenior vice president, SOPCExploration

Charles H. Bowmanpresident, Old Ben Coal

Michael W. Presssenior vice president. Sohio OilCrude Trading & Transportation

Sohio Oil Company

Frank E. Mosierbusiness board chairmanpresident & chief operating officer

J. Colin E. Webstercorporate executive vice president

John G. McDonaldcorporate senior vice presidentpresident, Sohio Oil Company

Ronald A. McGimpseysenior vice president, Sohio OilPetroleum Products & Refining

Michael W. Presssenior vice president, Sohio OilCrude Trading & Transportation

Thomas M. Hamilton, SOPCsenior vice president, Exploration

Donald B. Anthonyvice presidentResearch & Development

Robert R. Mesel, vice president.Corporate Control holds ex officiostatus on each board. John G.McDonald and William J. Johnsonhold ex officio status on the SOPCand Sohio Oil boards, respectively.

By Jim Marino

Standard Oil Chemical Company hasreached agreement on an exclusiveoption to acquire technology fromDavy Corp. p.l.c .. of London. The agree-ment permits Standard Oil Chemical tocombine its proprietary maleic anhydridetechnology with Davy technology toproduce maleic anhydride as well as threespecialty chemicals: gamma-butyro-lactone IGBL), tetra-hydrofuran (THFl.and l.4-butanediol.

Maleic anhydride is used in syntheticresins. lube oil additives. and chemicalfeedstocks. GBL is used as a solvent andin production of personal-care products:THF !!oes into elastic fibers such asLycra~and Spandex; butanediol is used inplaslics for metals replacement.

A final recommendation will bepresented to Standard Oil's board of

Old BencompletesmoveJames F. Campbell, geo-logist, starts to unpackand settle into his newoffice in Standard Oil'sheadquarters building.

Campbell is one ofabout 100 Old Benemployees who relocatedfrom Lexington, Ky., toCleveland in December.

Photo by Paul Tepley

directors for approval after the remainingengineering and marketing studies arecompleted. As part of the option. afterfinal approval. Standard Oil will con-tract with Davy to build the chemical-processing plant in Green Lake, Tex ..where Standard Oil has a major acryloni-trile facility.

The new investment would produceover 200 million pounds per year ofcombined products.

Market growth projections see annualdemand for maleic anhydride up 3-4percent; butanediol up 6-8 percent:GBL up 5-6 percent. and THF up 4-10percent.

"This agreement presents a uniqueopportunity to enter four new marketsusing advantaged technology to meet agrowing demand for these chemicals."says Douglas Campbell. Standard OilChemical president.

Standard Oil Now' January/February 3

Finance unit's challenge:

Parlay profits in financial markets

Traders specialize in international finance

On atypical day in Standard Oil's new trading room you'll find Andrew R. Morrison,director, Financial Trading; Paula D. Garner, position clerk; Steve A. Kovach,investment analyst, and Marty Fleischman, manager, Fixed-income Trading.

Superfund tax tab starts climb

Continued from page 1.International, which made 532 million inprofits its first year.

Standard Oil's newest unit alreadyhas a number of innovative financialach ievemen ts.

During fourth quarter 1986, StandardOil Finance completed a major debtrestructuring, which prepaid SI.3 billionof long-term debt.

Early retirement of high-interest debtcould save the company $15 millionaftertax dollars in 1987.

The largest move involved buying back,in conjunction with The British PetroleumCompany p.l.c., trans-Alaska pipelinenotes due in the 1990's, which carriedhigh interest rates. Standard Oil's shareof the buy-back amounted to 5779 millionworth of notes.

Standard Oil Finance also issued during1986 51.1 billion of long-term debtincluding:

• The sale of $300 million in oil indexedunits (securities with value tied to futureoil prices).

• Debt in the Japanese capital market- the first such financing by an Americanindustrial corporation.

• 590 million in Swiss Franc notes withdetachable warrants to purchase gold at$565 an ounce.

The unit also arranged 55.5 billion incredit for business opportunities as theyarise and opened a state-of-the-art finan-cial trading room in Cleveland (seeTRADERS, this page).

While fast-paced financial trading doeshave an element of risk, the right peopleand equipment can minimize concern.

"Volatility is a fact of life in financialmarkets," says Browne.

"We had to increase the financialexpertise available to the company toprotect it and its component businessesin these volatile markets:'

Edward P. Campbell, vice president,Finance, heads the new unit. He explainshow foreign currency is traded for profit.

"Frequently, we may see one foreigncurrency undervalued relative to another.In this situation, we would buy the under-valued currency - Deutsche marks. forinstance - and sell it later (often withinminutes) at a higher price to turn a profit.

"Banks do this sort of thing routinely.It's fairly new for a large U.S. corporationto engage in financial trading for profit.But I wouldn't say it's an exceptionally riskyventure," Campbell adds.

"Foreign market expertise helps usidentify attractive opportunities toarrange long-term debt. Our Japanesefinancing is a recent example. While theworld is becoming a single financialmarket, there are times when it is attractiveto borrow dollars abroad. During the pastyear we have put in place all the toolsnecessary to operate in a truly inter-national fashion:'

Stand~rd Oil's a~.nual tax paymentsInto Superfund - the Federalgovernment's 58.5 billion pool topay for cleanup of abandoned, hazardous-waste disposal sites - jump this yearfrom more than $7 million to over 535million.

That's because Congress reauthorizedSuperfund last fall at a higher fundinglevel. The renewed program includes amore than tenfold increase in oil taxesand taps oil and chemical companies formore than half the taxes that make upthe Superfund pool.

The cleanup is important. says StandardOil Corporate Environmental AffairsManager Kenneth E. Blower, but oiland chemical companies argued thatSuperfund should rely less on oil-chemicaltaxes and more on taxes from a broaderrange of sources.

Officially labeled the ComprehensiveEnvironmental Response Compensationand Liability Act (CERCLAl. Superfundwas first enacted in 1980.

The act set up a 51.6 billion pool ofmoney to pay for cleanup of toxic waste

4 Standard Oil Now· January/February

The unit's refinancing actions are bestsummed-up by Peter S. Hellman, treasurer:

"We have been refinancing the company,much like individual homeowners havebeen refinancing their home mortgages.

"We've bought back our old debt,which was issued at high interest rates-some exceeding 13 percent- using the

By Jim Marino

I t's known by some as the "WarRoom:' Panels of computer consoles,multicolored keyboards, and lines oftelephones stand at the ready.

The watchful eyes of the operators

dumps when companies responsiblecould not be determined or had escapedpaying, or when sites demanded immediateattention.

Congress reauthorized Superfund lastOctober at the 58.5 billion level. At thesame time, Congress established anadditional 5500 million fund to pay forreplacement of leaking undergroundstorage tanks at service stations. The fundis to be paid by a l-cent-per-gallon Federaltax on gasoline.

Under the Superfund bill. 52.7:' billionwill come from a tax on crude oil. paidby refiners. A mix of taxes on chemicalfeedstocks, corporations. and identifiablecompanies responsible for dump sitesalso will contribute to the fund. 51.25billion will come from general Treasuryrevenues. The government determineshow to use taxes in the pool to clean upspecific sites.

"During Congressional debate onSuperfund, the company argued for abroader tax approach." says Blower.

"In the dump sites Superfund is intendedto clean up, there's more \\"aste left

proceeds from sales of coal. copper,industrial products, and financial assets,and issued new lower cost debt, most atlevels below 8 percent.

The new unit reflects a change inattitudes at Standard Oil.

"Setting up Standard Oil Finance isboth a philosophical change and an

dart up one column of computer dataand down another.

You can almost imagine it as thenerve center of a military command.

Actually it's the nerve center forStandard Oil's newest business unit,Standard Oil Finance.

by industries other than oil and chemicals- from auto manufacturers to foodpackagers- than the tax formula suggests.And they're old sites where no one canpoint to a responsible company.

"So it's more a societal problem thanone that can clearly be laid at the feet ofspecific industries. It would make senseto use more money from general funds.

"Singling out the petroleum industryfor a large tax on crude oil is unfortunate."adds Blower. "Our industry has done agood job of waste treatment and disposal.

"While Standard Oil's Superfund shareis substantial. alternative tax plans whichhad been under consideration wouldhave been much more costly."

Sohio Oil Company refineries andStandard Oil Chemical Company plantscurrently dispose of wastes according toenvironmentally acceptable procedures,Blower points out. And Sohio Oil is inthe sixth year of an eight-year, 567-millionprogram to install corrosion-resistantgasoline storage tanks at its retail outlets.

organizational change," says Campbell."We're becoming proactive in our

financial affairs - anticipating the marketand basing decisions on those expec-tations. We are putting the managementof the risks in one central place wherewe can put the highest level of financialexpertise."

The financial trading room was in-stalled on the 37th floor of StandardOil's headquarters in Cleveland andstarted operating Dec. I.

It supports the company's move intointernational financial markets, astraders buy and sell foreign currencyand fixed-income securities.

Financial traders are in by 7 eachmorning, reviewing opening quotesin the major national and internationalfinancial markets.

Market news is continually flashedto them from three major sources:Reuters, Telerate, and Market Master.Telephones give them direct lines tobanks, investment houses, and othermarket participants. A satellite dishreceives data on markets.

Despite the high-tech help, thetrading room's success will dependon the business judgment of the peoplewho staff the consoles.

Traders explore financial markets,looking for opportunities: Is the priceof this security right? Is this a-betteruse of corporate dollars than anotherdeal?

"When our traders see a good op-portunity, we expect them to pick upa phone and lock it in," says Andrew R.Morrison, director, Financial Trading,Standard Oil Finance.

Standard Oil recruited experiencedtraders, who now work beside thecompany's own experts.

"We have a good cadre of peoplewho are already known in the marketsin which they deal. The skills theybring to the job will allow smoothentry into this new field for StandardOil," says Morrison.

Such in-house investment depart-ments are still fairly new to corporateAmerica, he adds.

The new unit will trade more than$10 billion in foreign exchange annually,and manage the company's sizableinvestment portfolio.

How Superfundis funded

• 52.75 billion - from a tax oncrude oil ($1.25 billion from atax on domestic oil at 8.2 centsper barrel. 51.5 billion fromimported oil taxed at 11.7 centsper barrel).

• 51.4 billion- tax on certainchemical feedstocks, paid by theproducing chemical companies.

• $2.5 billion - broad-based taxon corporations (including oiland chemical companies) havingtaxable income of at least $2million a year.

• $600 million - charged to com-panies identified after cleanupas responsible for waste sites,and from interest on money inthe fund.

• 51.25 billion - general Treasuryrevenues.

Kicking drngs, alcohol

Program helps employees pull lives together

Standard Oil's corporate policy againstdrug and alcohol abuse reads: "TheCompany prohibits the use, possession,or sale of illicit drugs in the workplaceor when conducting Company business,and requires its employees to be freefrom illicit drugs and to be free from theinfluence of alcohol, in order to assurethe safety of its operations, employees,and communities in which it operates,and to protect the Company's assets."

~I !,illegal drug use. Farage expects othercompany businesses to come out withtheir own program guidelines soon.

He also stresses that, while grouptesting of employees is permitted underthe corporate policy, none has been doneand there are no plans to do so.

Recent news articles that question theaccuracy of testing for the presence ofdrugs and alcohol prompted StandardOil's search for a high-quality lab.

"After an extensive review process,we contracted with a company that usesstate-of-the-art testing methods,and we have virtually eliminated theproblem of false results," Farage says.

Any urine sample that tests "positive"for drugs is re-tested, using threedifferent methods, to guarantee accurateresults, he adds.

All aspects of the company alcoholand drug abuse program, from pre-employment testing to opportunities forrehabilitation, not only help the company,but help employees help themselves.

"Employees who have undergonerehabilitation have often expressedgratitude to the company," says Farage.

Testing proves accurateSohio Oil, the first business to implementa program, calls for such measures astermination of the pre-employmentprocess if testing provides evidence of

beginning, he adds.From that "umbrella" policy, each

Standard Oil business group must developand implement its own alcohol/drug abuseprogram.

Farage developed a "model program"for the businesses to use as a guide,but each business is free to personalizeits program. The Occupational HealthDivision reviews the medical aspects ofeach program prior to implementation.

The model program:• Includes biological testing for the

presence of drugs at pre-employmenthealth evaluations; for cause (if anemployee shows signs of drug/alcoholabuse at work); for surveillance afterrehabilitation; and to assure safeoperation (testing for employee drug useon a group basis, following suspicions thata drug problem exists within that group).

• Educates employees about drugs, andencourages them voluntarily to seekassistance through EAP's.

• Trains supervisors to recognize andconfront employees about job perfor-mance problems. Managers would betaught to be increasingly sensitive towork performance problems, and suggestemployees seek help on their own, orrefer them to a Standard Oil EAP.

• Allows employees time off from workfor drug or alcohol rehabilitation.

• Disciplines employees who report towork under the influence of alcohol orwho are found to use/sell illegal drugs,especially when on company business.

• Investigates illicit drug activities inthe workplace or associated with theconduct of company business.

co-workers at risk for serious accidents,"says Farage.

"A chemical plant worker, for instance,may have trouble reading a gauge on avalve. Those who work with heavymachinery could lose their sense ofbalance and cause an accident," heexplains.

Illegal drug use also costs companiesmoney.

Government statistics say drug abusecosts industry about 5140 billion a year,more than dou bJe the 1977 figure.Included in those costs are losses fromemployee theft - from the company orfrom co-workers- to support theiraddiction.

Other costs may be more difficult tomeasure, ranging from poor job per-formance, to high absenteeism, to theincreased chance of costly mistakes andon-the-job injuries.

Employee drug abuse is not onlydangerous and expensive, it can affectother employees' morale, and encouragesecretiveness in the workplace.

To combat this, many companies-about 30 percent of the FORTUNE 500largest industrial corporations - haveestablished employee assistance programs(EAP's), according to a Time magazinestory last spring.

Standard Oil has its own EAP's in manvof its businesses throughout the country(see adjacent list). EAP's make it easy-and confid.ential- for an employee with aproblem to call for help.

"If a company attempts to reach out toits employees, those with problems willnot be as hesitant to come forward,"Farage explains.

Model program createdThe company's own alcohol and drugabuse policy spells out Standard Oil'santi-drug stand, but that is only the

Anchorage Marcus Hook(907) 562-0876 (Pa.)

1-800-223-7050Cleveland(216) 267-9377 Moundsville

(W.Va)Dallas (304) 845-3000(214) 651-7176

Niagara FallsGreen Lake (Tex.) (NY)(512) 572-0043 (716) 282-1228

Houston Oklahoma City(713) 993-0599 (405) 842-4435

Lima (Ohio) Toledo (Ohio)(419) 228-6856 (419) 244-5511

Help hotlineStandard Oil Employee AssistancePrograms include "hotline"numbers that employees can callfor confidential help in copingwith drug or alcohol problems.

Drugs threaten safetyWhy the need for a war against employeedrug abuse'l

"Employees 'under the influence' canhave poor coordination and perceptionproblems, and place themselves and their

Continued from page I.workforce, the government says about 10million employees could be drug users.Recent news articles have cited hundredsof companies across the country that areinstituting or revising their corporatedrug/alcohol abuse policies to respondto the problem.

RETIREMENTS .

• CorporateWebb M. Alspaugh (Jan. I),Human Resources vice president.Employed 1950.

• Sohio Oil CompanyMiriam M. Elliott (Sept. 1),restaurant cashier, Truck Stop250, Ashland, Ohio.Employed 1979.David O. Fisher (Oct. I), fillingplant operator, Lima (Ohio)Distribution Center.Employed 1978.William V. Herman (Oct. 1), BPTerminal senior clerk, TremleyPoint, N.J. Employed 1955.Edna Tisoski (Sept. 1), clerk, BPMarketing, Philadelphia.Employed 1982.

At Lima (Ohio) Refinerv:Marshall L. Reiff (Oct. 'I),brick mason/carpen ter.Employed 1947.

Clarence A. Zimmerman(Nov. I), emulsion plantoperator. Employed 1950.

At Marcus Hook (Pa.) Refinery:Commodore S. Harris (Nov. I),counter & receivable clerk.Employed 1946.William S. Harrison (Oct. I),truck driver. Employed 1948.John J. Metzler (Nov. I), pipe-fitter 1st class. Employed 1951.Benny Momot (Oct. I), carpenter1st class. Employed 1946.Howard D. Profitt (Oct. I),boilermaker 1st class.Employed 1948.

In Retail Marketing, Rafford E.Babb (July 1), gas-only shiftsupervisor, Dayton, Ohio.Em ployed 1962.W. D. Berndt (Oct. 1), car washmanager, Dover, Ohio.Employed 1943.Donald R. Geason (Sept. 1).

gas-only manager, Toledo, Ohio.Employed 1983.John H. Mcintosh (Oct. I),gas-only shift supervisor.Columbus, Ohio. Employed 1950.Luther E. Wilcoxon (Oct. 1),car wash manager, Dayton,Ohio. Employed 1971.Betty M. Wilhoite (Sept. I),self-serve cashier, Dayton, Ohio.Employed 1983.

In Wholesale Marketing,Michael Glowacky (Nov. 1),mechanic, BP Marketing, TremleyPoint. N.J. Employed 1955.

• Standard Oil ChemicalCompany

Juan P. Cosico (May I), engineer1. Filon, Hawthorne, Calif.Employed 1984.William D. Timmons (Oct. 1),maintenance mechanic, Lima.Ohio. Employed 1955.

• Standard Oil ProductionCompany

B. J. Barbosa (Sept. 1), generaloffice clerk, Dallas. Employed1981.Scotty Crone (Sept. 1), techni-cian, Prudhoe Bay, Alaska.Employed 1978.John S. Eyres (Sept. 1), staffgeophysicist I, Dallas.Employed 1981.Ralph S. Johnson (Sept. 1), staffproduction engineer II, Dallas.Employed 1981.George D. Mason (Sept. 1),technician, Anchorage.Employed 1978.Mary J. Naugle (Sept. 1), clerk,Dallas. Employed 1985.Peggy Papadakis (Nov. I), bondanalyst and quality coordinator,Houston. Employed 1980.Kodell Parker (Oct. 1), areaplanner, Anchorage.Employed 1977.

Edith Weber (Nov. I), seniorsecretary, Houston.Employed 1982.

• Old Ben Coal CompanyEverett L. Birchfield (Oct. I),office supervisor I, Thacker,W.Va. Employed 1970.

At Kitt Energy Corporation:Leo R. Gregory (Nov. I),administrative coordinator,Meadow Lands, Pa. Employed1979.

At Standard Oil AlternateEnergy Company:Joseph D'Intino (Nov. I),research chemist-slurry,Bridgeport N.J. Employed 1984.John W. Heyman (Nov. 1),operations technician,Bridgeport, N.J. Employed 1981.Donald C. Reynolds (Nov. 1),operations technician, Bridge-port, N.J. Employed 1985.

IN MEMORIAM

• EmployeesJohn Conley, 64, Old Ben CoalCompany. Oakland City, Ind.Employed 1978.Roger L. Davis, 50, Columbus(Ohio) Division. Employed 1983.Gerald D. Filipiak, 48, Toledo(Ohio) Refinery. Employed 1966.Brad D. Langellier, 29, Gulf OilCorporation, Lake Charles, La.Employed 1980.Ronald J. Oatley, 52, Toledo(Ohio) Refinery. Employed 1966.Samuel J. Scott, 42, Kitt EnergyCorporation, Meadow Lands,Pa. Employed 1984.William M. Shannon, 61, Truck-stops of America, Roanoke, Va.Employed 1980.

• RetireesCharles W. Brady, 61, BP OilMarketing, Washington.Retired 1976.Alfonso B. Caldwell, 93,Cincinnati Division.Retired 1958.Alexander J. Cummings, 71,Marcus Hook (Pa.) Refinery.Retired 1978.Margaret M. DeMouth, 75, BPMarketing, Bronx, N.Y.Retired 1971.Phillip J. Fredrick, 89, HomeOffice Finance. Retired 1961.William H. Gwynn, 83, CincinnatiDivision. Retired 1967.James O. Haggard, 61, Sohio

Chemical Company, Lima, Ohio.Reti red 1984.James R. Hamilton, 62, SohioPetroleum Company, OklahomaCity. Retired 1985.Charles J. Hennie, 86, HomeOffice Packaged Products.Retired 1963.RusseU C. Hughes, 62, WholesaleMarketing, Paulsboro, N.J.Retired 1984.Homer E. Jackson, 77, StandardOil Petroleum Company,Oklahoma City. Retired 1971.John P. Lanciotti, 60. ClevelandDivision. Retired 1984.Francis E. Michel, 68. BPTerminals, Syracuse. N.Y.Retired 1973.

Don A. Murry, 79, Sohio PipeLine Company, Transportation,Mooresville, Ind. Retired 1967.James E. Norris Jr., 64, MarcusHook (Pa.) Refinery" Retired 1982.Elmer J. Parsons Jr., 68, MarcusHook (Pa.) Refinery. Retired 1978.James A. Rohman, 57, Toledo(Ohio) Refinery. Retired 1985.Umbert A. San Antonio, 73,Research & Development,Warrensville, Ohio. Retired 1977.Arthur F. Schaab, 86, ClevelandDivision. Retired 1964.Alphonse Sledz, 76, Home OfficeAccounting. Retired 1975.Glenn N. Smith, 72, Old BenCoal Company. Benton, Ill.Retired 1979.

Harold R. VanGilder, 86, SohioPetroleum Company, Casper,Wyo. Retired 1960.Vernon VanNostrand, 70, BPMarketing, Englewood Cliffs, N.J.Reti red 1973.Willis R. White, 76, Sohio PipeLine Company, Norris City, Ill.Retired 1970.Charles R. Wilson, 68, Old BenCoal Company, Norton, Va.Retired 1977.

Standard Oil Now' January/February 5

Homer and Adam Brown warm up the paddles for a father-son malch.

Andy Roberts and Matt Schwebs took a crack at cricket during their secondment at BP.

H arry E. Griffith has skied since he wasfive, progressing from "the bunnyhill" to U.S. Ski Team member, to ski coach.

Once eighth-rated in the U.S. indownhill ski racing, Griffith, a productmanager for Sohio Oil's Tires, Batteriesand Accessories, is teaching teens howto race.

"I'm coaching because I want othersto get as much out of the sport as I did,"Griffith says.

He also enjoys volunteer coachingbecause it keeps him on the slopes andin shape.

A former coach for Holiday Valley(N.Y.) Ski Team, Griffith works withskiers aged 13 and up, preparing themfor slalom, giant slalom and downhillevents. This year, he is coaching at AlpineValley, a ski area near Cleveland.

"I force myself to work out, and I budgetmy time so I can do this."

Photo by Denise Hunter

the benefits. The hobby is a changeof pace from his job as a maintenancemechanic for the AcrylonitrileMaintenance Division, and it's nowonder he has a lot of friends.

"I take a pie in to work every sooften, just to be sociable," he explains.

Raabe, whose mother taught himher baking secrets, sells some piesand contracts to bake for specialoccasions.

"I don't make a killing- 1 covermy expenses and am putting a little

away for a bigger oven."

Ken Raabe bakes up to60 pies a day.

Ski champturns coach

Cricket players use a ball and flat bat.The sport is played almost entirely belowthe knees, as opposed to the great dealof upper body movement used in baseball.

Roberts, former program manager forthe Asphalt Ridge project at the formerSohio Shale Oil Company in Salt LakeCity, awaits reassignment in Standard Oil.

He is currently working on new hydro-carbon recovery techniques, and computercost-estimating techniq ues for minerals.

Schwebs, former project leader withCorporate Engineering at the WarrensvilleResearch & Development Center nearCleveland, is doing coal-water slurry andfluidized bed research.

W ander into his kitchen onbaking day and you'll findKen Raabe up to his elbows in piecrusts and fillings.

His specialty is a deep dish Dutchapple pie, but this Standard OilChemical Company employee fromLima, Ohio, can whip up any kind ofpie. And not just a few, either.

"At times 1 do run into a smallproblem, trying to bake40, SO or 60 pies inmy 30-inch oven,"Raabe admits.

But theproblems areminimized by

A slice of life...

W hen in England, do as the Englishdo. That's the motto of F. AndyRoberts and Matt R. Schwebs, "seconded"from Standard Oil to British Petroleum'sEngineering and Technical Centre inLondon.

Secondment is a method of sharingexpertise between companies throughtemporary employee relocation.

The two will return home in Marchafter completing an 18-month assignmentwith BP; but not without taking a crackat cricket, England's national sport.

"It's a lot different than baseball, butit was a lot of fun:' says Schwebs,describing a special game arranged forthem by co-workers.

Cricket, anyone?

age group at the Tennessee Junior Olympicchampionships in early 1986. He wenton to place seventh in the national com-petition held in St. Louis in August.

Adam's age group, by the way, is "Boys9 and Under." He is only 5 years old.

He became interested in the sport at14 months, and started volleying whenhe was 3. His father encouraged theyoungster's fervor hy building a platform,enabling Adam to see over the edge ofthe table.

Harry Griffith, skicoach at AlpineValley nearCleveland andformer U.S. SkiTeam member, in hiscompetitive yearson the slopes.

Like father,like son

y ou can call it table tennis. You can callit Ping-Pong. But whatever you call it,

Homer G. Brown and his son, Adam,call it the hottest sport going.

Brown, manager, Retail Training Centerfor Sohio Oil Company in Akron, haswon five national table tennis champion-ships since he started playing in college.

Back then, the fast-paced action of thegame intrigued him. Today, the really bignews is the little guy, who is coached byhis father.

Adam placed first in the sport in his

6 Standard Oil Now' January/February

o NTH E M 0 V E

Felice

At Hawthorne, Calif.: Robin L.Daskin is promoted to seniorchemist at the Silmar Plant.

At Warrensville: Thomas W.Krucek transfers as seniorchemist from Chase Brass &Copper Company in Euclid, Ohio.

Promotions include Steven C.DeSutter, Irrigation SchedulingProject manager; Ralph Feliceto Engineering ResearchTechnology Division groupleader; and Ajit Sane,research associate.

• Standard Oil EngineeredMaterials Company

• Chase Brass &Copper Company

Dennis R. Winfield is promotedto division controller at theSheet Division in Euclid, Ohio.

Pepera

• Standard OilResearch & Development

At Cleveland: Yancey R.Williams is promoted to commer-cial associate from Anchorage.

Michael G. Mower is an inter-company transfer as Venturemanager.

At Warrensville: Marc A. Peperatransfers from Pleasant ValleyLaboratory as senior chemist.

Christopher J. Clark, EngineeringResearch Group manager onsecondment from BP London.

Promotions include George D.Bibel, senior technical specialist;Roman Loza, senior researchspecialist; and Neal F. Magri,senior chemist.

Scott R. Bryan starts as seniorchemist.

In Planning, promotions includePaul L. Fowler, director,Business Plans; Thomas M.Majcher, director, StrategicStudies from Lexington, Ky.;and Heather L. Ross, director,Environmental Forecastingfrom London.

Donald A. Nyberg transfers toBP London as Operations DivisionGroup Control Departmentmanager from Cleveland.

In Tax, James F. Gilliland ispromoted to Tax InformationSystems Management supervisor.

Thomas R. Heindenthal transfersas senior Tax analyst-Miningfrom Lexington, Ky.

Delores Del Balso and PatrickO'Malley start as Income &Franchise Tax accountants.

In Advanced Fuels Technology,promotions include Carl E.Eckman, senior project manager;Maganlal L. Patel, engineerIV; and Joseph Schenk, marketresearch associate.

GillilandRossman

In Finance, promotions includeKathleen A. Ferry, FinancialPlanning associate; Steve A.Kovach, Financial Tradingassociate; and Peter J.Manuguerra, Treasury Operationsmanager.

In Human Resources, promotionsinclude Sheilarayne Moore-Hewitt, senior Benefits analyst;Sidney R. Robertson, vicepresident, Human Resources;and Elizabeth A. Rossman,Benefits Control manager.

In Information Management,Carol L. Hart is promoted toCorporate Data Administrationmanager.

ManuguerraKovach

At Cleveland: Promotions includeAlan D. Gillie, senior industrialhygienist; Michele M. Shamblin,Executive Staff coordinator; andStephen K. Simon, systemsspecialist II-Commercial.

Gas Task Force transfers includeKenyon C. Gilson, generalmanager from British PetroleumCompany at London; Donald J.Halter, special assignmentfrom Sohio Oil Company atCleveland; and John J. Yurkanin,special assignment fromCleveland.

In Audit, Bruce W. Hoefs ispromoted to senior auditor.

In Control. John C. Bordeauxtransfers as Capital ExpenditureControl manager fromAnchorage.

• Corporate

• Sohio Oil CompanyAt Lima (Ohio) Refinery: JohnM. Green transfers as Main-tenance Planning Analysismanager from Prudhoe Bay,Alaska.

Promotions include Larry J.Vonderembse, senior main-tenance planner; and ChristopherW. Yetman, Personnel Admini-stration supervisor.

At Marcus Hook (Pa.) Refinery:Intercompany promotions includeKevin Blaine, lead engineer-project; George J. Burns,William M. Dougherty, andRonald Williams, maintenancesupervisors-Section; Ronald D.Corbit, Glenn C. Kayta Sr.,Joseph P. McMenamin, andEdward Wojciechowski main-tenance supervisors; and MichaelJ. Zacher, process supervisor II.

At Toledo (Ohio) Refinery: MarkE. Frena transfers as engineeringspecialist-Control Systemsfrom Cleveland.

Benjamin H. Davis is promotedto operating supervisor.

At Detroit: John C. Goetz trans-fers as construction engineerfrom Longview, Tex.

At Nashville, William M. GivenJr. starts as engineer projects& environment coordinator.

At Cleveland: In WholesaleMarketing & Distribution, pro-motions include Ronald L.Colvin, senior control analyst;and Donald L. Flessner, controlcoordinator.

Transfers include Donald F.Kautzman, manager, LubesAccounting from Research &Development; E. T. Korb,director, Technical & AnalyticalServices from Lima (Ohio)Refinery; and Donald R.Langshaw, project engineer IVfrom Headquarters BuildingProject Team.

At Mechanicsburg, Pa.: RandallS. Roberts is promoted to terminalmanager IV from Paulsboro, N.J.

Intercompany promotionsinclude Christopher J. Spragg,engineering specialist-ControlSystems.

In Retail Marketing, promotionsinclude Lisa A. Galehouse, Tires,Batteries, & Accessories pro-motional programs specialist;Linda M. Laszcz, promotionalprograms specialist; Mary E.O'Neill, project leader, RetailSystems; Marla J. Rupena,project leader- Retail Systems;and Anne M. Staitirr, seniorBudgets & Planning analyst.

Rajan M. Khosla is promoted toOperations Control managerfrom Toledo, Ohio.

Daniel J. Losby transfers asadministrative & project engineerfrom Longview, Tex.

Judith A. Cunningham starts asproject leader-Retail Systems;and Daniel E. Lewis, informationspecialist-level II.

At Atlanta: Kerry T. Lienbergeris promoted to merchandising andtraining supervisor fromCleveland.

Losby

Constance E. Forrester, seniorInformation Systems consultant;and Humberto Vainieri, manager.Operations Planning.

Dennis R. Jonke is an inter-company transfer as Carbo~Products general manager.

In Refining, promotions includeDavid A. Aebi, senior technicalspecialist-Computerizationfrom Research & Development;William M. Downey, Safety,Health & Conservation specialistfrom Toledo (Ohio) Refinery;Bruce A. Gansner, StrategicOperations manager from MarcusHook (Pa.) Refinery: and BruceM. Spacer, engineering specialist,Control Systems from Lima(Ohio) Refinery.

O'NeillGalehouseJonke

At Cleveland: Intercompanypromotions include Richard L.Mercer, Systems Migrationmanager: and Donna M.Meister, Business Performanceanalyst.

William M. Morris transfers assenior Information Servicesspecialist from Lexington, Ky.

In Crude Trading &Transportation, promotionsinclude Nancy M. Carter, CrudeOil Operations general manager;and Daniel A. Huczko, manager,Lease Purchases.

In Petroleum Products & Refining,promotions include Francis H.Beam III, financial analyst;

• Standard Oil Production Company

Mildred R. James has written a217-page book, continuing a legacythat began more than a century ago.

James, a 1977 retiree from theformer Sohio Process Control division,has been interested in genealogysince she was achild. Her handwrittenbook is a chronicle of that interest,tracing her family back to 1572 inintricate detail.

"My grandfather, who was bornbefore the Civil War, wrote about theearly history of the family. In hisbook, he asked future generations tocontinue the story. That's what I'mtrying to do," says James, anOlmsted Township, Ohio, resident.

The search has meant hours inlibraries, dozens of letters to obscuretown halls, and personal contact withmany distant relatives, James says.

Family chronicleupholds tradition

At Anchorage: Christopher J.Lewis joins as reservoirengineer III.

Transfers include Douglas D.Handyside, senior reservoirengineer J from Dallas; and GaryNeville, reservoir engineer IVfrom BP at Aberdeen. Scotland.

At Houston: Transfers includeJoe Hurliman Jr., seniorreservoir engineer I fromAnchorage; Norman J. Powell,executive consultant engineerfrom Cleveland; and PhilTolbert, Exploration & Produc-tion General Audit managerfrom Dallas.

John R. Klein is appointedassistant controller.

• Standard Oil Chemical CompanyJames K. Yuann is promoted toLicensing director, Cleveland.Rimvydas (Ray) L. Cepulistransfers from Standard OilProduction Company at Warrens-ville as Research and Develop-ment senior chemist.

Tolbert

At Dallas: Promotions includeFouad Y. Michael, staffgeophysicist II; and Paul T.Treece, staff computer scienceI-Exploration & ProductionPlanning/Analysis.

Transfers include Greg C. Cooke,project construction engineer atNew Iberia, La. from Anchorage.

Photo by Dan Morgan

Standard Oil Now· January/February 7

John Jurkowski, senior technician in the new Electronic Ceramics division, works withsilicon wafers. Silicon chips, made from the wafers, are used in products like calculators,radios, and television sets.

Ceramics goes high-tech

after Jan. 1, replace the previousoval-shaped pins with theSohio logo.

The pins are lO-carat gold.Small diamonds mark each 10years of service with StandardOil, while a blue stone honorseach five years of service (at 5,15,25,35, and 45 years).

of acquiring and analyzing seismic data.That edge is one tool the AppraisalGroup will use to develop new explorationplays for SOPC."

Once the Appraisal Group develops anew play, that group will move to an oper-ating division, such as FlO or COD, to"work" the play by acquiring additionalseismic information. lease rights, andfinally drilling prospects.

The NAAG is anaJyzing the undiscoveredresource potential of the Lower 48 states.The assessment is a long-range planningtool for SOPC. However, it already hasidentified several basins that could becomenew exploration plays for SOrc.

'The goal of the Appraisal Group is toidentify one new play in 1987 and two orthree new plays each year after that,"Hamilton says.

Employee service-awardpins - honoring eachfive years of service with thecompany - have been updated toreflect Standard Oil's new cor-porate logo, redesigned in 1986.

The rectangular pins, awardedto employees with companyanniversary dates occurring

Service pinsrevamped, feature

new logo

Continued from page 3.with developing new exploration areas,or "plays," for SOPC.

''Although the U.S. is the most-drilledarea in the world, underexplored and afew unexplored areas still exist,"Hamilton says.

The oil industry develops about onesuccessful new play in the U.S. every twoyears. In many cases, these areas involvedeeper geologic structures in basinsalready producing oil and gas, or in areaswhere surface rocks have "hidden"underlying prospects.

"Our own innovations in seismic pro-cessing and interpretation, coupled witha detailed understanding of the geology,led to our success in Oklahoma's deepAnadarko Basin," Hamilton says.

"SOPC is a leader in the technology

Exploration focus on'exciting prospects'in 1987

Amherst, N.Y, to produce boron nitride.The Electronic Ceramics Division

plans to establish a laboratory in California'sSilicon Valley sometime this year, whereStandard Oil researchers can work directlywith customers on specific problems.

Luiz F Kahl, Engineered Materialspresident, says these product lines sharecommon raw materials, manufacturingprocesses and markets. The new divisionblends expertise from product develop-ment. marketing, control, and manu-facturing.

Continued from page 1.A refurbished plant in Sanborn, N. Y,

will manufacture the silicon carbidesubstrates.

The new division will also supplyplanar diffusion sources, such as boronnitride, for a special vaporizing processknown as "doping" silicon wafers. Thewafers are the material from whichsilicon chips are made. Doping is thecontrolled transfer of impurities tosilicon.

The company is equipping a plant in

HQ policy limits light-up areas, 'protects' nonsmokersAclean indoor-air policy that prohibitssmoking in much of Standard Oil'sheadquarters building in Clevelandhas gone into effect.

The policy may become a model forother Cleveland-area locat~ns. accordingto Christopher M. Farage, clinical psy-chologist and manager, corporate MentalHealth and Behavioral Services.

Other Standard Oil facilities have avariety of clean-air policies, taking into

account local circumstances. and healthand safety rules.

Standard Oil's headquarters policybans smoking in all areas of the buildingexcept: designated areas of the cafeteria.certain "smoking-permitted" rooms onseveral floors, individual hardwall offices.and public and loading dock areas.

Supervisors and department heads willenforce the restriction. As a guideline,however, the policy reads: "The pre-

ference of the nonsmoker to protect hisor her health and comfort shall takeprecedence over an employee's desireto smoke."

The policy. announced Nov. JO. wentinto effect Jan . .5.

Farage says Standard Oil joins severalother corporations across the nation inlimiting exposure to "sidestream" smokein the workplace and public areas.

Sidestream smoke is smoke inhaled by

people sitting close to a smoker."Our policy was drafted after careful

review of medical evidence which suggestspotentially harmful health effects onnonsmokers from passive, or sidestreamsmoke." Farage says.

The U.S. Surgeon General reported inmid-December that passive smoke couldcause lung cancer and other diseases,and recommended that immediate stepsbe taken to protect nonsmokers.

12I

I ,

10 11I I

9I

8I

I I

" "'

7I

6I

5I

" I ,

(In thousands of barrels/day)

4I

• Includes condensates: about 140,000 barrels/dayfor Venezuela, and 50,000 barrels/day for Nigeria.

Source: PetrOleum Intelligence WeeklyDec. l!i. 1986

3I

Top 10 World Oil Producers

2I

[I I •

~1I11

l ,I I R I •

Hmm' III I I •I t M R ~

mm', I I" IUElElBH::Jl:::!l=j

..-o

.::a

II

Standard Oil Now· January/February 8