The Pacific Coast market today is highly competitive. Price wars have been with us so long that depressed prices seem normal. Marketing margins are low. Refiners margins are seriously depressed. Eastern oil companies are seeking Pacific Coast outlets for their product. This contrasts with the stable Pacific Coast market of 10 years ago.

The turning point came at about the time of the Korean War. With the big Middle East oil strikes, productive capacity exceeded consumption. Combined with a surplus of tankers, a shift from production orientation to marketing was inevitable. Concurrently, petroleum companies have been seeeking greater efficiency in all phases of their operation.

For the next 20 years, California continues to have the greatest growth prospects in our market. Following 1980, a similar expansion is expected for the Pacific Northwest. Marketing prospects are virtually unlimited.

End_of_Article - Last_Page 130------------