Headline:   "Oil and Gas IT Investment Remains High, But More Operationally
Focused, Concludes an Industry Survey to Be Presented at Interactive Energy
Conference, Dec. 5"

HOUSTON, TEXAS, November 14, 2001 - After a period of widespread
shoot-at-anything-that-moves investment policy that followed the ERP, Y2K,
and e-business boom, oil and gas firms remain aggressive investors in
information technology (IT), but their selections are much more focused on
tangible results, according to the recent findings of researchers at Booz
Allen Hamilton and Zeus Development Corporation. The two firms have joined
in a research project to interview information officers at many of the
world's leading energy firms to understand how they are currently managing
IT investment.  A final report will be presented at Interactive Energy,
Wednesday, Dec. 5.

"Management are scrutinizing their IT investment opportunities more closely
to ensure they return short to medium-term positive cash flow," reports Bob
Nimocks, president of Zeus.   "For this reason, they're also very interested
in finding ways to extend current investments in ERP, e-procurement, data
warehouses and other recent applications."

The researchers have found that investment policies vary widely from sector
to sector.  In the oilfield services and exploration and production sector,
IT management have maintained or increased their capital budgets from last
year, continuing to look for technologies that can lead to large reserve
additions or improvements in production. 

"The impression is that there is still a lot to be gained from such
technologies as reservoir imaging, data integration, knowledge management
and inter-organizational collaboration," Nimocks said.  "The integrated
majors continue to spend significant resources in these areas." 

Downstream refining and petrochemical management, on the other hand, have no
choice but to cut their IT budgets in the face of very tight operating
margins.  "Anything more than a year, we don't even bother asking," said an
IT director at a large petrochemical processor.  "We're at the bottom of our
business cycle - at least I hope we are.  Out capital expenditure budgets
are down about 15% this year compared to last, and last year was down about
15% from the previous."

With deregulation, gas and power competitors are in the midst of one of the
most profound changes to their industry since its inception.  Management are
very interested in technology to improve their competitiveness within
wholesale and retail markets. However, the Enron financial crisis seems to
have spooked the industry for the time being.  

Researchers are finding differences cut across organizational sizes as well.
Smaller and mid-market firms have cut more quickly in reaction to downturns
in market conditions.  Larger firms remain more committed to long-term
plans.  Many larger firms have changed their governance systems to ensure
investments are made with direct benefits.

"A year ago we didn't have to worry about costs," reported one information
officer of a mid-sized independent with upstream and chemicals operations.
"Now we do."  She explained data warehousing remains a high priority for
both business units, but other new initiatives, such as wireless
implementations, have been reduced to small pilot studies.  

About the Survey
	Delegates of Interactive Energy will receive the full report of Booz
Allen Hamilton and Zeus Development Corporation's survey of information
technology (IT) development in the energy sector, including a review of the
applications where energy management are currently investing.  Staff are
working to interview energy-company information officers (CIOs) as well as
representatives from supplier firms and public sector organizations around
the world to determine priorities in IT development, changes in the levels
of capital spending, key trends, and innovations in governance.  
The results will be presented during a special presentation at the
conference on December 5th.  Interviewees who participated in the survey are
invited to attend the session to discuss the conclusions and meet other
participants.  

About Interactive Energy
Interactive Energy will be held at Houston's George R. Brown Convention
Center, Dec. 4-7.  The annual conference and exhibition covers information
technology (IT) advancements in the energy industry and features numerous
case studies of technology implementations, new software demonstrations,
business plans and special workshops.  Conference Sponsors of Interactive
Energy 2001 already include Enermetrix (www.enermetrix.com) SAIC
(www.saic.com), AT&T (www.att.com), Microsoft Corporation
(www.microsoft.com), Luminant Worldwide (www.luminant.com), Unisys
(www.unisys.com), Conchango (www.conchango.com), Proclarity
(www.proclarity.com), Silicon Energy (www.siliconenergy.com), Avocent
(www.pixelvision.com), Documentum (www.documentum.com), Appropria
(www.appropria.com) and Oracle (www.oracle.com).  Supporters include PR
Newswire, Energy Central, TIPRO, Techxans and the Houston Business Journal.

About Zeus Development Corporation: 
Celebrating its tenth year of incorporation, Zeus Development Corporation is
a privately owned research consultancy offering strategic and business
development information through reports, monthly periodicals, databases,
consulting services and conferences to the energy industry in the areas of
information technology and downstream natural gas development.  For more
information, contact Ms. Whitney Casso, 832-200-3718 or
wcasso@zeusdevelopment.com <mailto:wcasso@zeusdevelopment.com>.
Greg.Whalley@enron.com