During the 1980s, American oil companies acquired nonenergy companies (e.g., copper, auto components) in response to anticipated decreases in investment opportunities in oil.This type of diversification is referred to as

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Conglomerate integration involves diversifying into unrelated industries, which is what American oil companies did when they acquired nonenergy companies such as copper and auto components. Horizontal integration involves merging with or acquiring companies that operate in the same industry, while vertical integration involves merging with or acquiring companies that operate in different stages of the same supply chain (forward vertical integration involves merging with or acquiring companies that operate downstream, while backward vertical integration involves merging with or acquiring companies that operate upstream).

During the 1980s, American Oil Companies Acquired Nonenergy Companies (E