Show f BUSINESS and the tha STOCK MARKET by BABSON'S DABSON'S REPORTS INC 1971 1911 ANOTHER LOOK AT PETROLEUM Petroleum Issues have been lacking In vitality for some time even while the reassessment phase that took over for the better part of September This wen weakness weakness weak weak- ness in oils has been caused by a anum number number num num- ber of domestic and international events The petroleum companies with substantial substantial foreign interests have been particularly particularly par par- ar hard hit Natural Natura gas producers had been attracting attracting attract attract- ing investor buying interest on the strength of more realistic setting rate de but even these Issues have lost some of their luster since the establishment establishment establish establish- ment of the emergency price sage freeze It is difficult to segregate oil and gas stocks per se so since these two resources are arc found in similar geological formations formations forma forma- with one well often orten producing both sl Rambunctious Opec Group The major foreign producing oil-producing nations na na- na having having tasted success in negotiations negotiations over recent years especially where there have been aggressive regimes such as now exist in Libya Indonesia and Venezuela Venezuela have have become increasingly militant in their against the international oil companies operating in these oil fertile lands To strengthen their bargaining power even further eleven ele ele- ven yen of these nations nations banded banded together as the Organization of Petroleum Exporting Countries OPEC OPEC have have taken a more demanding position on a broad front Meeting in Vienna last July the group formed committees to blueprint plans for foran foran foran an outright ownership share in existing oil concessions An interest of 20 percent percent percent per per- cent appears to be the Ute initial objective The date for reporting back was set for September 22 but the urgency of OPEC's position was highlighted when the date was advanced to August 27 Results will probably not be known for some time As the dollar doUar faltered during the summer summer sum sum- mer OPEC expressed further concern concern since oil revenues to member nations are largely in dollars In addition to possible pos sible compensation for current revaluation revaluation revaluation tion negotiations for an adjusting index tied to world inflation may come under consideration Negotiations will undoubtedly undoubtedly edly be prolonged and it is more mor than possible OPEC PEC will vil prevail in m most t of of-it- of its demands The Freeze Some of President Nixons Nixon's economic controls will also aiso have an effect on the industry depending on the final degree of implementation For instance gas rates are apparently frozen but if this turns out to be a deterrent to exploration and production an all exception could be granted Natural gas firms have been making progress with |