By making mechanical and electrical modifications to five of its oil wells under a Motor Challenge Showcase Demonstration project, OXY USA (a subsidiary of Occidental Petroleum Corporation) reduced energy consumption by more than 12 percent and achieved total annual savings of$5,362. Other stories in the newsletter focus on the Compressed Air Challenge, a national initiative to promote efficient and effective industrial compressed air systems, a detailed discussion of what to believe--and what NOT to believe--about the efficiency numbers stamped on electric motor nameplates; and increasing international interest in establishing programs similar to Motor Challenge.