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TEXACO CEO ALFRED C. DeCRANE, JR., SAYS COMPANY'S PLANS BUILD ON COMPETITIVE STRENGTH

 Company Combines Solid Business Performance
 And Technological Innovation
 WHITE PLAINS, N.Y., May 11 /PRNewswire/ -- "Texaco has shaped its tactical and strategic plans to confirm and to advance its fully competitive position as a preferred provider of petroleum," said Chairman of the Board and Chief Executive Officer Alfred C. DeCrane, Jr., at the company's 92nd annual meeting.
 Despite a number of pressing global economic and environmental challenges, Texaco Inc. (NYSE: TX) has capitalized on its established strengths and a corporate culture of striving for continuous improvement, added DeCrane in his first annual meeting as CEO.
 Texaco's plans are based on a foundation emphasizing the company's fully competitive manufacturing and marketing system; demonstrated capability to add hydrocarbon reserves using innovative technologies; and the commitment of its empowered, well-trained and focused work force, said DeCrane.
 To meet the challenges ahead, DeCrane delineated how the company will implement its tactical and strategic plans, including:
 -- Continuing to add hydrocarbon reserves through promising prospects like those being drilled off the coasts of Myanmar and Malaysia;
 -- Enhancing its search for new reserves by applying innovative technologies like its subsea technology, now being installed in the North Sea Strathspey Field, and advances such as the company's proprietary vertical seismic cable system that gathers high-quality three-dimensional seismic data;
 -- Building on its experience and strength as a preferred partner, evidenced in the recent agreement with the Shanghai Petroleum Corporation for development of a high-potential gas producing area in the East China Sea; and
 -- Expanding the reach of its proven projects, like the unique Texaco Gasification Process and the company's more than 7,000 convenience stores at gasoline units around the world.
 "I set forth this bold and immodest litany of intentions with a full appreciation of the challenges and the competition we face -- and with full recognition of the strength of those competitors of ours and their redoubled efforts to unseat us," DeCrane said.
 He emphasized that such improvement does not just happen, but instead is driven by the financial and operational programs implemented in the last several years. Those measures have, in turn, translated to solid performance for the company, including:
 -- Net income for 1992, before special accounting changes, of $1.012 billion, or $3.53 per common share;
 -- A competitive $3.20 per share dividend on common stock;
 -- Hydrocarbon reserve replacement of 94 percent worldwide in 1992, and a 105 percent average for oil and gas over the last three years; and
 -- Texaco-branded gasoline sales in the U.S. that increased again in 1992, providing an increase in market share of 11 percent over the last four years, all in the face of sluggish market demand.
 DeCrane said this performance has been achieved through solid planning and the dedication of employees who are keeping expenses well under control.
 Texaco Vice Chairman of the Board and Chief Financial Officer Allen J. Krowe underscored Texaco's commitment to a strong financial foundation, citing the company's improved balance sheet and operating performance. That, he said, has resulted in a decrease in both the debt level and the average interest rate, and an increase in stockholders' equity in the past five years. Additionally, he added, the company has a strong A+ credit rating.
 "With this solid foundation, we are able to achieve a business balance: pursuing significant investments in attractive future growth opportunities, while maintaining our strong financial position," Krowe said.
 Texaco's planned growth will be challenged by the uncertain world economy, as well as a series of issues facing the U.S., including the Clinton Administration's proposals for general tax increases, coupled with special taxes on petroleum energy, noted DeCrane.
 "While significant growth continues to be experienced in much of the Pacific Rim and in many areas of Latin America, there is no strong and steady surge in economic activity across the United States; and Europe is best identified as stagnant," DeCrane said.
 Further, the Federal Administration is proposing an energy tax that would penalize liquid petroleum energy with a rate 2-1/3 times the rate of taxes on most other energy sources. The new charge is commonly referred to as a "BTU tax," because it would be levied on the heat content of individual energy sources as measured in British Thermal Units.
 "A particularly pernicious aspect of this tax program is its siphoning of funds through the penalty tax on our business, to fund competitive energy sources," he said. "Since oil products are so fundamental to economic growth, these added burdens will delay recovery, cost jobs and hurt American competitiveness worldwide."
 In pointing to federal legislation like the Clean Air Act of 1990, DeCrane called the country's current approach to environmental regulation a further threat to economic recovery and U.S. competitiveness. While Texaco seeks to achieve a cleaner, safer environment, he said, "as a nation we have become ensnared in a web of laws and regulations, which create enormous costs without providing commensurate environmental benefits."
 DeCrane cited the enormous costs of implementing the Clean Air Act Amendments, arguing that "far less expensive methods of accomplishing the same air quality goals and improvements are available." And, he said, "the command-and-control approach" inherent in so many major U.S. environmental laws explicitly prohibits or avoids appropriate cost- benefit analysis.
 But thanks in part to the company's progress over the past several years, Texaco is well-positioned to meet demands for rigorous environmental, safety and health standards, while satisfying the needs and interests of its customers everywhere, DeCrane said. That includes reemphasizing the ongoing commitment to its Star Quality Process and the pursuit of excellence through employee empowerment, he added.
 "I stand confident today, because, at Texaco, quality describes more than a process -- it describes the people of Texaco," DeCrane said in summation. "These Texaco people have committed to our vision of a company that is a leader in its industry."
 -0- 5/11/93
 /CONTACT: Dave Dickson, 914-253-4128; Jim Reisler, 914-253-4389; Jim Swords, 914-253-4103 or Cynthia Boyd, 914-253-4743, all of Texaco/
 (TX)


CO: Texaco Inc. ST: New York IN: OIL SU:

SB -- NY076 -- 7144 05/11/93 14:36 EDT
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Date:May 11, 1993
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