What is the situation which must be met? Because of economic pressure, the oil industry has made various adjustments. There have been mergers and re-organiza-tions. Exploration plans have been dropped, curtailed, or deferred. This is a simple, direct way to cut expenditures and improve the immediate profit picture. Exploration adds nothing to income for this year or next; perhaps it will be six or seven years before the exploration done this year will result in the profitable production of oil. Decreasing or deferring exploration is thus an obvious method of borrowing from the future.

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