Big Oil's Housecleaning

Diversify! That was the buzzword in Big Oil boardrooms during the 1970s, when the companies were trying to stash away their megaprofits in ventures that would pay off in leaner times. But now, just when the investments should be ripening, many have turned up sour. Last week Exxon said that it is trying to find a buyer for its moribund office-equipment division, an enterprise that has cost the company some $100 million. When Exxon challenged Xerox, IBM and Wang by introducing its Vydec word processors, Qyx typewriters and Qwip facsimile transmitters in the late 1970s, the innovative machines drew praise. But the oil company failed to follow up with more breakthroughs, and its business-equipment sales never took off.

Two other oil companies last week disclosed major house-cleaning steps, partly the result of an 18-month slide in oil prices. Texaco announced plans to take a $765 million write-off on its fourth-quarter earnings, partly to reflect the decreased value of several underused refineries and oil tankers. California's Chevron, which merged with Gulf this year, said it may have to lay off some 10,000 workers and sell Gulfs Pittsburgh headquarters.