Shell buying Pennzoil-Quaker State

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What do you think about Shell buying Pennzoil-Quaker State? Interesting item to the deal--PZL has to sell its half interest in the Louisiana refinery that produces base oil, and can't sell to its partner ConocoPhillips. Also, Shell/PZL can't increase the amount of base oil it buys from ExxonMobil. Interesting that the FTC goes to such efforts to increase the competition in the base oil market. http://www.nytimes.com/2002/09/28/business/28SHEL.html?ex=1033876800&en=b3a3b01a1b7038a5&ei=5062&partner=GOOGLE http://www.hydrocarbons-technology.com/projects/westlake/ Ken
 
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Johnny hasn't posted here since Sept. 22. Hope he's on vacation and hasn't lost interest because he'd be missed. Anyway, I think he's commented favorably on the merger. Maybe he was giving us the company line, but I thought he said that more resources would be brought to bear. Unfortunately there's going to be a lot less companies in the future then there is now. At least the different brands and formulations will (hopefully) still be in play. Johnny-- If you're out there....
 
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williar: I hate to disagree with anyone, but I have to disagree with your statement about employees and shareholders and a step backwards. I have been an employee of Pennzoil for 20 years and this is a great thing to happen. For one, effective at 8:01 AM EST on October 1st, the value of my stock just tripled. That's good to me. I just inherited a better benifits package and retirement package. Over 94% of the PQS employees still have a job, and the one's who don't will be getting a very attractive package. To put the number 1 and 2 selling motor oils together with Royal Dutch Shell will lead to very good things to come. I will agree with you about the fat cats at the top of PQS getting wealthy off of this. That part is a shame.
 
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sprintman: They are working on a new synthetic formula now. Not sure when it will be introduced, maybe sometime this coming summer (2003). pepper32: The oil formula for Pennzoil and Quaker State will remain the same.
 
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Ken, Thanks for the post. Interesting the FTC would not allow Phillips/Conoco to purchase the other 1/2? Is that regulating or manipulating/controlling ? I just read this morning that Company will be the largest and most profitable in the World.I am not so sure this is a good thing for anyone other than those involved is my opinion. It seems one more step closer to the smaller oil Companies eventually will not be able to compete or stay up and fail and or be forced to sell out. So,being a relative newbie to all this,what does the FTC do that is good for the Industry? Now please don't get me wrong and I am new to this but I have not seen anything good from them yet,ie the Castrol and group III thing did not exactly protect the consumers imo now this effort to control who buys the refinery.Is this truely good for the Industry?
 

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It was the National Advertising Division (NAD) of the Council of Better Business Bureaus that heard the dispute between Mobil and Castrol about Syntec and Group III base oil. The FTC was the agency that shot down Castrol's hype about their gasoline additive. Basically, the more sources of supply (less oligoply) the better it is for consumers. If there are a very small number of suppliers, you take their product at their price, like it or not. An analogy might be the folks that live near an airport with many gates controlled by just one airline. High prices for the same flight mileage as other flights from airports with multiple carriers and lower prices. Ken
 
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Ken,Thanks for clarifying this. I was obviously way off on who was involved with this Synthetic ruling. I would like to read about it. Do you possibly have a link? Also "Basically, the more sources of supply (less oligoply) the better it is for consumers" At this point after the Dutch Shell purchase who are say the top Ten and how many Companies left are owned by Companies that are USA owned and operated? I am curious as to how many were USA owned and operated 20 years ago as well. The field was greatly narrowed it seems but who am I to question it in that I am not a stock holder in any oil company but am somewhat concernd being a American. Certainly they still employee USA folks,but?
 
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I agree about the FTC, they should just but out, but they were the ones that broke up Standard Oil 70 years ago. I to use to be concerned about foreign companies owning this and that, but now it is a global economy. I just saw an interview with the CEO of Mobil the other day, and found out that they are the largest producer and purchaser of crude from Saudi Arabia. So who know where the money and profits are going. I also just found out that State Farm Insurance was the single largest stock holder in Pennzoil stock. Everytime my stocks went down, my insurance went up. Talk about a screw up. I think it's time to retire. It is getting to complicated for me. Oh, I can't do that now, I have one for kid to get through college. Five more years and I will be a spectator. [Big Grin]
 

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quote:
Originally posted by dragboat: ...how many Companies left are owned by Companies that are USA owned and operated? I am curious as to how many were USA owned and operated 20 years ago as well. The field was greatly narrowed it seems but who am I to question it in that I am not a stock holder in any oil company but am somewhat concernd being a American. Certainly they still employee USA folks,but?
These come to mind, and I'm sure that I'm leaving several out: ChevronTexaco ExxonMobil ConocoPhillips ElPaso (including Coastal) (Omitting exploration companies like Unocal, etc.) Ken
 
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