BP Amoco puts its 250,000 bId Alliance, Louisiana
re-finery on the block with a sale likely before year's end.
The Alliance refmery isn't attractive since BP Amoco already has too much
capacity in a market where margins are already unacceptable. Browne said
that worldwide refining would be slashed by a third, but offered no par-ticulars
other than the Alliance site.
The BP Amoco CEO predicted a tough environment for refiners, citing the "exception" that global refining margins "will average little more than $1.00 bbl over the medium term." But he predicted solid growth potential for oil exploration and production, with only cheap OPEC oil as a threat to profitability.
Chevron Targets Tech
Chevron is targeting technology start-up companies with its newly formed subsidiary - Chevron Technology Ventures LLC. The new company will work over the next five years in selecting venture capital firms to make equity investments early in new technologies. Its primary focus, aimed at complementing Chevron's existing businesses and building new growth opportunities, will be on information technology, biotechnology and materials science.
Discount Gasoline Marketers Undercut the Competition
Rapidly expanding discount gasoline marketers are changing the way Americans fuel-up their cars and wreaking havoc on the bottom-lines of traditional gasoline outlets. WAWA and Sheetz, two Pennsylvania based c-store chains marketing gasoline at very tight margins, have a big edge over top major brand retailers throughout Delaware, New Jersey, and Pennsylvania, based on an exclusive survey performed by the Opis Retail Report. The survey of nearly 200 stations through the Mid-Atlantic region shows WAWA and Sheetz pricing gaso-line 10 cents to 16 cents per gallon below the state averages. The two retailers have as much as 19 cents per gallon edge over some major brands. In Pennsylvania, where Sheetz and WAWA market head4o-head, WAWA, on average, has a more competitive price by almost 4 cents per gallon.
First National "Super-jobbership" About to Take Off
A group of gasoline marketers, backed by invest-ment bankers and venture capitalists, is forming the nation's first "super-jobbership." Already negotiating with five firms moving 700-800 million gals/yr, the new company hopes to boost volumes to 1 billion gallons
roll-up company will be Tulsa jobber Bob Phillips,
president of SIGMA and a large fleet marketer. Long-
time marketer Jack Pester, just retired as a senior VP
of Coastal, is expected to become a director of the new
firm.
Score Card for an Evolving Channel
Consumer home shopping and -commerce internet
shopping is the most talked about business revolution
of the decade, regardless of whether it be for groceries
or restaurant meals. The USDA Economic Research
Service estimated that consumer purchased foods for
home delivery, including mail order, totaled more than
$10 billion for 1997. That is triple the market size of a
decade ago. Other sources (using more inclusive
definitions) indicate an even larger market. Growth is
estimated by most sources to exceed an average of
10% per year or more.
Changes in Travel and Tourism
Big changes are ahead for the U.S. travel and tourism
industry. Shifting demographics and consumer preferences
plus use of the Internet will reshape the $520 billion industries.Global
competition for international tourist is
heating up. Critical because foreign visitors spend about $100 billion in
the U.S.... nearly a fifth of U.S. tourism revenues. On average, overseas
visitors spend 10 times more traveling in the U.S. than vacationing Americans
do.
Demographics are altering the duration and timing of
vacations. More two-career families, year-round schools and children's busy
lives are making it tougher to schedule traditional two-week summer
vacations.
Shorter, more frequent getaways are spread through-out
the year. To take advantage, convention cities and centers, hotels, restaurants,
even airports, sell family appeal and help blend business with pleasure.
