In 1996, we accelerated our deepwater Gulf of Mexico program with aggressive lease acquisitions. And we moved swiftly to acquire an interest in Venezuela's Hamaca heavy oil project when that significant hydrocarbon region opened to private investment. But we also have the fiscal discipline to keep firm control of costs and to balance growth opportunities with execution of our strategic plans. On that score, we are continuing our discussions with Shell Oil Company to form a major alliance to operate some combination of our U.S. downstream businesses with synergy and cost savings that will add to earnings and cash flow for both companies. We hope to conclude a letter of intent during the first quarter of 1997.
Technology continues to change the competitive landscape and the marketplace.
Technology expands and accelerates the capacity of the mind to comprehend and create. Its value is in its speedy application. Showing the World our Value One of the things we hold in highest esteem at Texaco is our company's image and reputation, and that of our industry. A strong reputation is registered in the pride of employees and their commitment to uphold the integrity of that reputation. Our industry's image is vital to our business as well, particularly since the vast majority of hydrocarbons worldwide still fall under some form of government control.