Ethan Manuel is with the U.S. Public Interest Research Group. Industry analyst Michael Lewis, with the Petroleum Finance Company, doesn't think prices will necessarily go up. But he, like many others, is curious about the timing of the deal. Plans for a Chevron Texaco merger fell apart in the past, so why announce a deal now, when oil prices are high and regulators and consumers are more likely to throw up hurdles. Lewis thinks Texaco, with its stock price floundering and major projects yet to pay off, needed the cash.
Analyst say it more efficient to combine operations to compete with other global giants.
Chevron Texaco also plans to cut 4000 jobs, or seven percent of the workforce. In NY, I'm Jessica Smith for Marketplace. You and I need to have a quick conversation about plumbing. Like plumbing, most of the subsystems that make the financial markets work aren't pretty. But they are important, a point that was emphasized today by the powerful chairman of the Federal Reserve.