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COSTLY REGULATION PUSHING U.S. INDUSTRY OVERSEAS

 COSTLY REGULATION PUSHING U.S. INDUSTRY OVERSEAS
 WASHINGTON, Oct. 5 /PRNewswire -- The harsh regulations imposed on


domestic oil and gas exploration and production may help expedite globalization of the nation's petroleum industry, the chairman of Amoco Corporation (NYSE: AN) said here today.
 "The current regulatory climate in our country is hostile to domestic exploration and production and plays no small part in the all- out drive toward globalization," H. Laurance Fuller told a meeting of the Society of Petroleum Engineers.
 "But the other side of the coin is that while this process of globalization may be expedited by adverse domestic external considerations, it is also being encouraged by unprecedented opportunities throughout the emerging new world," Fuller said.
 He cited opportunities in Russia and its former satellite nations "undreamed of three years ago;" also in Asia, China, the Pacific Rim countries, parts of Africa, Mexico, Venezuela, and much of Latin America.
 In Latin America, Fuller said, "the possibilities are unlimited, with the promise of exciting new possibilities in this hemisphere that have never been fully explored. Our industry will play a major role in developing these possibilities."
 Fuller said the first step in the process has been completed with the signing of the North American Free Trade Agreement (NAFTA), which will establish a free trade zone among the United States, Canada, and Mexico.
 "When completed, this free trade area will bind more than 350 million people together into a $6 trillion economy, more than 25 percent larger than the European Community," Fuller said.
 "The ultimate goal beyond the NAFTA agreement is a concept of a hemispheric free trade zone stretching, as President Bush has put it, 'from Alaska to Yucatan.'" establish positions in the emerging post-Cold War world, the search for capital has never been more intense -- or more competitive.
 He said this is particularly true for the petroleum industry, which faces sluggish product demand, low oil and gas prices, and fierce and unprecedented worldwide competition.
 Further, he said, the industry -- because it is still profitable has been targeted for punitive tax rules, severe restrictions on domestic exploration and drilling; and misguided regulations that are based on bad science, ignore costs, and rely on a rigid bureaucratic command-and- control system for implementation.
 Fuller cited as an example the impact of current regulations on Amoco's Yorktown Refinery, the site of the recently completed two-year pollution prevention study that involved more than 200 people and 35 organizations, including the Federal Environmental Protection Agency.
 "Amoco will spend about $54 million over the next four years to reduce hydrocarbon emissions from the refinery as required by existing regulations," Fuller said.
 "But the study found that Amoco could reduce emissions by the same amount for only $10 million if it was allowed to implement scientifically sound alternatives."
 -0- 10/5/92
 /CONTACT: Jim Fair, 312-856-5566, or Mary Milnamow, 312-856-6066, both of Amoco Corporation/
 (AN) CO: Amoco Corporation ST: Illinois IN: OIL SU:


BM -- CL008 -- 6740 10/05/92 16:19 EDT
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Oct 5, 1992
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