Page 34: of Maritime Reporter Magazine (November 1998)

A vibration-free vessel begins with a precision-straightened AQUAMETT boat shaft from Western Branch Metals. We can straighten shafts up to 8" in diameter and up to 35 feet in length to exacting tolerances.

Over the past 22 years, Western Branch Metals has grown to become the largest stocking distributor of AQUAMET boat shafting in the world.

We are committed to providing quality, availability and competitive pricing with an added touch of personal service.

Talk to the company who knows boat shafting, Western Branch!

To learn more, call: 800.446.8133 www. aquamet. com

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GULF COAST REPORT

E&P Spending

Projected To Drop

Analysts predict spending cuts for the oil majors, as oil prices have fallen to the lowest levels in 12 years, resulting in considerably lower third quar- ter earnings. Spending on exploration and development, the key to future production growth, seems the most likely area to feel the effects of dimin- ished investment.

Amoco Corp. said return on capital in the first nine months of 1998 was 8.8 percent, down from 13.3 percent in the year- ago period, or little more than three percentage points more than it could get from investing in the relatively risk-free U.S. 30-year bond. In August, Amoco and British Petroleum Co. Pic announced plans to merge.

Amoco's third-quarter earn- ings fell to $295 million from $635 million in the year-ago period.

Analysts say even at Exxon

Corp., the world's largest and publicly traded oil major, returns on capital have fallen to some 10 percent from a histori- cal rate of 14 percent to 16 per- cent, in the past nine months.

Exxon reported third-quarter net income fell to $1.4 billion from $1.82 billion in the same quarter last year.

For Texaco Inc., which saw third-quarter earnings drop 56 percent, the focus for the future remains one of bearing down hard on costs at its ailing

Caltex Asian refining and mar- keting venture with Chevron

Corp.

Texaco reported third-quar- ter net income slid to $215 mil- lion from $490 million in the year-ago period.

The company says it is going to keep a cautious eye on its capital spending plans, which stood at almost $2.8 billion in the first nine months of this year. Past spending enabled

Texaco to increase oil and gas output by nine percent from a year ago. Both U.S. and inter- national exploration and devel- opment spending at Texaco slowed in the third quarter as large projects were completed. "Texaco continues carefully to assess investment projects, given the current and projected industry environment.

Adjustments in spending have

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Fax: 65-296-0451 www.tano.com 32 Maritime Reporter/Engineering News