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In past years, Forrest Garb usually prepared this article for World Oil. However, because he has cut back on his day-to-day involvement with our company, Forrest has decided that restoring Model T and Model A Ford cars is more fun than writing industry forecasts. Thus, he has passed the baton to me, and I will try to continue his tradition of assessing the E&P industry from a consultant’s viewpoint. As a first-time World Oil advisor, I will try to carry on Forrest’s tradition of using facts to bolster my opinion of recent events, as well as to shape a near-term outlook.
Forecasts normally assume that we are in a stable environment, both environmentally and politically. However, the recent terrorist events in the U.S. have caused all forecasts prepared before Sept. 11, 2001, to be obsolete. Instead of moving toward a world that would function as "one," countries will once again rely more heavily on their own internal capabilities.
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