PROMOTION: Oil's New Sell

Among the notable effects of the energy shortage is a radical change in oil-company advertising. Surprising as it may appear to readers and TV viewers who see a sudden gush of oil ads, few major oil firms have increased their advertising much, and many have cut back. But the ads that do run are not aimed at selling gasoline; they tend to be institutional ads that seek to explain the energy crisis and the companies' high profits. Says Paul Haynie, a Needham, Harper & Steers executive who handles advertising for Atlantic Richfield: "It didn't make sense to promote traffic into Arco stations when there wouldn't be enough gas to go around."

At first, the new ads were mostly treatises on the origins of the shortage or exhortations to conserve energy. Amoco, which last April dropped a $1 million product campaign aimed at luring vacationers into the company's gas stations, now runs print and TV "progress reports" on subjects such as "America's great natural-resources appetite." With cameras, Atlantic Richfield followed two overweight men around while they attempted to live without their cars. Each of them lost 35 pounds in three months of walking and watching their diets. Arco commercials now advise weight watchers: "Leave your car in the garage."

Harder Line. Lately the companies have been taking a harder line against criticism. Last month Texaco headlined full-page newspaper ads: "We're not holding back anything." The ad said that Texaco was supplying comprehensive statistics to federal officials that proved there was a genuine shortage of fuel. Mobil warned in newspapers: "Don't read these ads if you've made up your mind about oil profits." Justifying the corporation's 47% earnings increase in 1973, the ad said: "A company cannot continue for many years to make new investments unless it earns a satisfactory rate of return."

Many companies are spending less on energy-crisis ads than they did on their old product pitches. Oil firms tend to guard their advertising figures jealously. But Standard of California cut its advertising budget by 70% last year; Atlantic Richfield's 1974 ad budget is 40% lower than last year's. Standard of Indiana executives predict that in 1974 their advertising outlay will be less than half the $28 million it was in 1970. One of the few firms that plan to advertise more is Exxon, which anticipates a "substantial increase" over last year's expenditure.