Thoughts on cooperative operation by Kenneth T. Derr, chairman of the board and chief executive officer of Chevron Corp., at the World Petroleum Congress Oct. 16, 1997, in Beijing:

"...Our industry seems to be making new deals as fast as we can in an atmosphere that`s both anxious and crowded.

"Clearly, choosing the right partners is more important than ever before. I understand the urgency for growth. But while oil and gas are commodities, long-term successful partnerships are not. Relationships in our business last for decades, and their enormous value and importance make them worthy of our most diligent considerations.

"Superior partnerships work because both sides invest the necessary time and resources to ensure that the marriage is a good fit. They emphasize a long-term perspective for both the relationship and the management of the assets. They make the best of any price situation, and they share experience, people, training, and technology.

"Superior partnerships understand that even a small error in a major field can make a big difference. They take every opportunity to earn more money for the partnership. And because they are more attractive to other future partners, they have an edge on additional growth opportunities. Superior partnerships also have an upside: a built-in chance to expand the relationship into chemicals, power generation, research, shipping, refining, or marketing.

"Lastly, superior partnerships understand the long-term business value of a quality reputation. As they link technology to business goals, they will link it also to reputation by finding new ways to make their operations consistently safer for employees and neighbors-and to make their products steadily cleaner for customers.

"By this process, superior partnerships will do much more than reward the partners. They will become a primary mechanism to help the oil industry reinvent its public image."