Vol 2, PW 24 (23 Dec 98) News in Brief

Peter Gaffney, senior partner at Gaffney Cline & Associates, is advising oil companies hit by low prices not to sacrifice exploration budgets.

Gaffney, speaking at the SEAPEX Exploration Conference in Singapore, attended by over 200 delegates, said 80% of current oil and gas production is obtained from wells drilled in the last 5 years. He added that companies have lost access to good ideas because they are possessed by technology and criticised the control placed on the oil industry by "29 year old fund managers who jump ship depending on their own personal performance".

Gaffney urged oil companies to move away from "the mentality of Management By Head Count (MBHC) and Management By Analyst Comment (MBAC)".