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Exhibit IV

Trends: How The Rapid Spread Of Independents Into Foreign Operations Affects The Global Oil IndustryAnd Who Are The New International Operators

Traditionally, the field of foreign oil operations has been considered the preserve of a relatively limited group of large international oil companies. A fairly substantial number of small concerns, both American and British, endeavored to compete in the search for and development of oil abroad—especially during the first 30 years of the century. But most of them floundered for lack of adequate capitalization to meet the exorbitant costs involved. Some became discouraged in the face of unexpected and difficult problems. Others had their properties expropriated, or just tired of trying to cope with unreasonable political and legal handicaps. They chose to return to the less spectacular but more profitable profits obtainable from development of domestic United States reserves. Even the successful few subsequently sold their holdings to the majors.

Today, however, there is an entirely unprecedented interest and activity abroad by independent American operators—and, to a lesser extent, by others from such countries as Belgium, France, Germany, Italy, and even Japan. In each instance, the stimulation has been the relatively poor discovery rates at home—-and the prospect of strengthening their competitive status by discovery and development of relatively low-cost crude supplies in more prolific foreign oil lands. While the cost of overseas operations today is greater than ever, the relative risk has been reduced substantially by improved oil exploration technology. Furthermore, the investment has been made more attractive by the faster rate at which positive results are obtained with modern survey techniques and high-speed portable drilling equipment. This reduces the time factor on dead-rent payments. The economy of house-trailer camps and mobile workshop is another redeeming feature of the new era, whereas in the old days little could be salvaged from an unsuccessful venture.

This entry of new blood into the international oil fraternity is becoming recognized as a healthy trend by traditionalists as well as the more liberal-minded, although some have viewed the development with trepidation. There is little need for undue alarm on the part of the vested interests, however, because predictable growth of oil consumption indicates the future demand for i>etroleum will be so great as to leave plenty of scope for expansion by all.

A British Petroleum Co., Ltd., official, D. C. Ion (exploration manager of BP's Canadian subsidiary. Triad Oil Co., Ltd.), not long ago called the attention of the Institute of Petroleum in England to the important expansion of American oil interests outside of the United States, not only by majors but by many independents. He said that the activity is important because—

(1) These independents do not carry the cartel stigma by which the majors have been labeled.

(2) There will inevitably result an added awareness of the responsible role of the petroleum industry in underdeveloped nations.

(3) The necessary role of wildcatters will progressively be taken over by independents <as is the case in the United States of America) while the majors will develop their concessions.

Global oil output by producing regions
(Figures in thousand barrels per day)

[table]

Mr. Ion foresees a virtual doubling of free world demand in 1965 at 26 million barrels per day (11,400,000 barrels per day in the United States alone) — outstripping last year's optimistic forecast of Chase Manhattan Bank by 1,200,000 barrels per day. He sees demand climbing to 40,700,000 barrels per day (15 million barrels per day in the United States) by 1975.

Assuming political conditions are no less stable in the future than they have been in recent years, his forecast as to the geographical pattern that production growth is likely to follow in coming decades conforms to the general concensus of industry economists. Mr. Ion anticipates that by 197") Middle Eastern output will reach almost 3 times the present United Stntes rate of production, compared currently with little more than half the American level. This would require the drilling of 3,200 to 7,000 additional wells in that area during the next 20 years, at the rate of perhaps about 2 million feet of hole yearly. Second most-important area for expansion would be the Caribbean region of South America, while Canada would continue to play a part of growing significance. He anticipated United States output would level off in 1965 at a plateau of 9 million barrels per day, less than 50 percent more than current levels.

223 UNITED STATES OPERATORS NOW ACTIVE IN 51 COUNTRIES

A new worldwide survey being developed by International Oilman reveals an astoundingly active and broadened interest in overseas oil operations by a lengthening list of United States independent oilmen. Returns, which are still coming in, reveal already that some 223 independent oil operators are engaged in, or actively launching, exploration and development programs in 51 countries outside of the United States.

Latin American countries are attracting the largest following among the independents, followed by the Middle East, other North America, West Europe and the Far East. Approximately H8 percent of all independents represented in these worldwide operations are relatively small operators, while 12 percent are in the category of semimajor companies. The survey does not include the major, integrated companies.

Until a few years ago, international oil operations were confined primarily to a handful of large, integrated oil companies. Today, however, the capital risks involved in the search for oil and gas in every part of the world are eagerly being shared by the independents as well ns the so-called majors. Underlying this anomaly is the growing conviction of many governments that the encouragement of private capital offers the most satisfactory means of converting untapped natural resources into tangible assets.

Revisions of petroleum laws, which previously discouraged investments of outside, private capital, are opening new international horizons that spell economic and social progress for millions of people in many parts of the world. The entry of United States independent oilmen into many other countries may perhaps be a golden key that will open many more doors to improved international relationships. Furthermore, these changing developments may bring about a more universal understanding of the fundamental principles of democracy and freedom in the pursuit of private initiative and individual enterprise.

The accompanying list of United States oil operators, and the respective countries in which they arc active, is presented here to show bow extensively independent oilmen are engaging in international operations. Names of far-off countries, that were legendary a few years ago, are today becoming as familiar to independent oil operators ns Texas. Louisiana, and California. Prospective oil lands in the frozen wastes of Alaska, the deserts of the Middle East, or the steaming jungles of Central and South America, are identified with names of United States oil operators. United States independents are no longer strangers in the capitals of Europe, South America, the Middle East, or even in the Far East. As new concessions are offered in various countries, more and more independent oil operators are reportedly successful in obtaining such rights.

Canada has at least 62 representative United States independents, followed by Venezuela with 55, Cuba with 24. Guatemala and Panama with 18 each, Honduras and Iran with 17 each, Bolivia with 13, and Colombia and the neutral '■one with 11 each. Independent oil operators are also reported active in Alaska iind Mexico, and have entered 19 Central and South American countries, 22 countries of the Middle East and Africa, 4 west European countries and 3 Far Eastern areas. Quite a few small as well as large independents have extended their interests and investments to embrace several countries, some of which are widely separated geographically. Los Nietos Co., Los Angeles, Calif.—Cnnada

More than 65 percent of the world's oil production is presently controlled by United States oil interests, both major companies and independent operators. As the benefits of oil discovery and development are realized by a growing number of nations, there appears to be more universal approval of the American system of free enterprise and the encouragement of private capital investments. This is indeed a hopeful sign, which must ultimately improve the economic and social welfare of a growing number of the world's underprivileged people.

Independent Oil, Companies

J. S. Abercrombie, Houston, Tex.—Mexico, Iran, neutral zone

Aluminum Corporation of America, Pittsburgh, Pa.—Panama

American Greek Oil Co., St. Louis, Mo.—Greece.

American Independent Oil Co., San Francisco, Calif.—Mexico, Venezuela, Iran,

neutral zone American Maracaibo Oil Co., New York, N. Y.—Canada, Colombia, Honduras,

Venezuela
American Northland Oil Co., San Francisco, Calif—Canada
Americuba Corp.—Cuba
Amurex Oil Co., El Dorado, Ark.—Canada
Anchorage Oil & Gas Co., Houston, Tex.—Alaska
Mark E. Andrews, Houston, Tex.—Haiti
An-Son Petroleum Corp., Oklahoma City, Okla.—Colombia
Argus Petroleum Corp., Cody, Wyo.—Guatemala
Atlas Corp., New York, N. Y.—Dominican Republic
Bahama National Oil Co., Los Angeles, Calif.—Bahamas
Bandini Petroleum Corp., I,os Angeles, Calif.—Guatemala
Barium Steel Co.—Bolivia

Barnwell Offshore, Inc., Shreveport, La.—Honduras
Barry & Reiner, Inc., Tulsa, Okla.—Bolivia
Bay Petroleum Corp., Houston, Tex.—Canada
Bear Sterns & Co., New York, N. Y.—Spain
Benedum & Trees, Pittsburgh, Pa.—Canada, Colombia, Cuba
Bishop Oil Co., San Francisco. Calif.—Canada
John H. Blaffer, Houston, Tex.—Haiti
Boger Oil Co., Houston, Tex.—Venezuela
Bolsa Chica Oil Co., Los Angeles, Calif.—Turkey
Britalta Petroleum, Ltd., New York. N. Y.—Canada
Brooks-Scanlon Oil Co.—Alaska

J. T. Buckley Estate, Houston, Tex.—Canada, Ecuador, Guatemala
D. Harold Byrd, Dallas, Tex.—Honduras
Caracas Petroleum Co., New York, N. Y.—Venezuela
Caribbean American Petroleum Corp. of Panama, Midland, Tex.—Panama
Cataract Mining Corp., New York, N. Y.—Panama
Central American Oil and Mining Co.—Guatemala
Champlin Oil & Refining Co., Fort Worth. Tex.—Canada
Ernest Cockrell, Houston, Tex.—Honduras

Colorado Oil & Gas Corp., Colorado Springs, Colo.—Alaska, Canada
Columbus Texall Co., Long Beach, Calif.—Panama, Venezuela
Commerce Corp., New York, N. Y.—Panama
Cia Petrolera del Golfo del Darien, New York, N. Y.—Panama
W. B. Cleary, Inc.—Canada

Climax Molybdenum Co., New York. N. Y.—Canada
Cole. Howard S., Houston, Tex.—Dominican Republic
Commonwealth Oil Co., Houston, Tex.—Haiti
Consolidated American Industries, Inc.—Panama
Consolidated Cuban Oil Co.—Cuba
Coro Petroleum Co.—Venezuela
Frank H. Crerie, Houston, Tex.—Puerto Rico
Crosby Oil Corp.—Canada
Cuban American Oil Co., Dallas, Tex.—Cuba
Cuban Canadian Oil Co.—Cuba
Dade Petroleum Co., Houston, Tex.—Venezuela

Ralph K. Davies, San Francisco, Calif.—Iran, Mexico, neutral zone

Deep Rock Oil Co., Chicago, 111.—Canada, Iran, Mexico, neutral zone

DeGolyer & MacXaughton, Dallas, Tex.—Spain

Delhi-Taylor Oil Co., Dallas, Tex.—Texas—Canada, Panama

H. L. Dillon and Co., New York, N. Y.—Syria

Douglas Oil Co., Los Angeles, Calif.—Peru

W. B. Duce, Beverly Hills, Calif.—Cuba

Drilling & Exploration Co., Dallas, Tex.—Canada. Bolivia, France

El Paso Natural Gas Co.. El Paso, Tex.—Venezuela

Empire Trust Co., New York, N. Y.—Canada

Esperanza Petroleum Corp., New York—Venezuela

Ralph E. Fair, Inc., San Antonio, Tex.—Egypt

Falcon Petroleum Corp., Houston, Tex.—Venezuela

Fargo Oils, Inc., Dallas, Tex.—Canada

Fay, Albert Bell, Houston, Tex.—Dominican Republic

D. D. Feldman, Dallas, Tex.—France, Turkey
Felmont Oil Corp., New York, N. YT.—Canada

E. E. Fogelson, Dallas, Tex.—Spain

Lester Foran and Lynn S. Holmes, Corpus Christi, Tex.—Honduras

Forest Oil Corp., Bradford, Pa.—Colombia, Cyprus

Franco Wyoming Oil Co., Cheyenne, Wyo.—France

Frankfort Oil Co.—Alaska

General American Oil Co.. Dallas. Tex.—Canada, Spain. West Africa

Georeseareh, Inc., Dallas, Tex.—Honduras

Getty Oil Co., Los Angeles, Calif.—Iran. Kuwait neutral zone, Canada

Gilliland Oil Co., Los Angeles, Calif.—Peru, Turkey

Globe Oil & Gas Corp., Owensboro, Ky.—Mexico

Globe Oil & Refining Co., Wichita. Kans.—Canada, Mexico, Iran

Haddock Oil Co., Los Angeles, Calif.—Venezuela

Hancock Oil Company of California, Long Beach, Calif.—Bolivia, Venezuela,

Iran, Kuwait neutral zone
Havenstrite Oil Co., Los Angeles, Calif.—Alaska
Heathman-Seeligson Drilling Co., Wichita, Kans. (Molasse Oil Explorations) —

France
Lynn S. Holmes, Corpus Christi, Tex.—Honduras
Honolulu Oil Corp., San Francisco. Calif.—Canada
Hudson Oil & Gas Co., Shreveport, La.—Cuba
Hunt International Petroleum, Dallas, Tex.—Pakistan

Nelson Bunker Hunt, Dallas, Tex.—Libya

Husky Oil Co., Cody, Wyo.—Canada, Guatemala, Israel, Turkey

Harvey H. Hutchins, Jackson, Miss.—Jordan

Hydroil of Houston. Houston, Tex.—Panama

Illinois-Wyoming Oil Co., Chicago, III.—Canada

Independent Exploration Co., Los Angeles, Calif.—Mexico

Iniskin Unit Operators—Canada

International Oil & Metals Corp., San Francisco, Calif.—Panama

International Oil & Minerals Corp.. Seattle, Wash.—Panama

International Products Corp., New York, N. Y'.—Bolivia

Israel-Mediterranean Petroleum—Canada, Ecuador, Guatemala, Israel

Story Jones, Houston, Tex.—Guatemala

Jupiter Oils, Ltd., New York, N. Y.—Canada

Justiss-Mears Oil Co., Dallas, Tex.—Honduras

Keljikan Commercial Corp., New York, N. Y.—Bolivia

Kerr-McGee Oil Industries, Inc., Oklahoma City. Okla.—Cuba. Panama

Kewanee Oil Co., Philadelphia, Pa.—Cuba

Kimberley Oil Exploration Syndicate, Philadelphia, Pa.—Australia

King-Mill Oil Co.—Venezuela

Kirby Production Co., Houston, Tex.—Canada, Venezuela

Kirkwood Drilling Co., Dallas, Tex.—Haiti

I-apidoth-Israel Petroleum Co.. Ltd.. New York. N. Y.—Israel

Lario Oil& Gas Co., Wichita, Kans.—Mexico, Iran, Neutral Zone

Lee Oil Co., Tulsa, Okla.—Cuba

Lehman Corp.. New York, N. Y.—Canada

Lion Oil Co., El Dorado, Ark.—Venezuela, Sicily, Spain

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MacMillan Petroleum Co., Los Angeles, Calif.—Sicily

Maracaibo Oil Exploration Co., Dallas, Tex.—Venezuela

Marmora Petroleum Corp., Cody, Wyo.—Turkey

Marts Oil Co., Bartlesville, Okla — Surinam

C. H. Maury—Venezuela

Mayflower Properties, Inc., (Societe De Forage Mayflower Texas Pour Le Maroc) —Morocco

McBride Oil & Gas Corp., San Antonio, Tex.—British Guiana

McCarty & Coleman, Wichita Falls, Tex.—Canada

David C. McCord, Dallas, Tex.—Honduras

McDermott, J. Ray & Co., Houston, Tex.—Nicaragua

McRae Oil & Gas Corp., Denver, Colo.—Honduras

John W. Meeom, Houston, Tex.—Colombia, Haiti, Honduras

J. W. MenHall, MenHall Exploration Co., Benton, 111.—Syria

Middle Petroleum Co., Houston, Tex.—Israel

Mountain Valley Oil Corp., Denver, Colo.—Cuba

Murmac Oil Co., Dallas, Tex.—Venezuela

Murphy Corp.—Venezuela

Xadel and Gussman, Tulsa, Okla.—Israel

National Petroleum Corporation of Cuba—Cuba

Newmont Mining Corp., New York, N. Y.—Algeria

Northern Natural Gas Co., Omaha, Neb.—Canada

Oil & Gas Property Management, Inc., Dallas, Tex.—Honduras, Yemen

Pantepec Oil, C. A., Houston, Tex.—Ecuador

Edwin W. Pauley, Los Angeles, Calif.—Dominican Republic, Mexico, Jordan

I'etrolex of Panama Corp., Houston, Tex.—Panama

Placid Oil Co., Shreveport, La.—Canada

Plymouth Oil Co., Pittsburgh, Pa.—Guatemala, West Africa

Pyramid Oil Co., New York, N. Y.—Israel

Reiter-Foster Oil Co., New York, N. Y.—Cuba, Venezuela

Rimrock Tidelands, Inc., Shreveport, La.—Israel

San Jacinto Petroleum Corp., Houston, Tex.—Venezuela, Iran

San Jose Oil Co.—Philippines

San Juan Exploration Co., Dallas, Tex.—Canada

Santa Fe Oil Co., Miami, Fla.—Cuba

Santiago Petroleum Corp., Houston, Tex.—Canada, Ecuador, Guatemala

Scurry-Rainbow Oil, Ltd., Cleveland, Ohio—Canada

Seaboard Oil Co., Dallas, Tex.—Canada, Venezuela

O. R. Seagraves, Dallas, Tex.—Honduras

Seismograph Service Corp., Tulsa, Okla.—Bolivia

Sharpies Oil Co., Denver, Colo.—Mexico, Venezuela

Siboney-Caribbean Petroleum Co., Tulsa, Okla.—Cuba

C. J. Simpson—Cuba

Skiles Oil Corp., Mt. Carmel, 111.—Peru.

Sloane Exploration Co., Houston, Tex.—Guatemala

L. Sonneborn & Sons. New York, N. Y.—Israel

Southern California Petroleum Corp., Los Angeles, Calif.—Venezuela, Egypt

Southern Products Co., Fort Worth, Tex.—Canada

Southland Royalty Co., Fort Worth, Tex.—Panama

Star Oil Co., Dallas, Tex.—Venezuela

Sullivan & Garnett, Corpus Christi, Tex.—Honduras

Sunray Mid-Continent Petroleum Corp., Tulsa, Okla.—Alaska, Canada, Venezuela, Iran

Sunset International, Los Angeles, Calif.—Canada

Talon Petroleum Co., Houston, Tex.—Venezuela

Tennessee Gas Transmission Co., Houston, Tex.—Canada, Bolivia, Venezuela

Texas Alberta Oil Corp., Midland, Tex.—Canada

Texas American Oil Co., Midland, Tex.—Panama

Texas Calgary Co., Abilene, Tex.—Canada

Texas Gulf Producing Co., Houston, Tex.—Ecuador, Peru, Venezuela, Libya

Texota Oil Co.—Alaska, Liberia

Transcontinental Oil Corp., Dallas, Tex.—Cuba

Robert W. Tyson, Jackson, Miss.—Jordan

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