Cooperation & Development and established in 1974. IEA says the study represents the first attempt by a group of nations to focus on which new technologies could contribute most to IEA energy needs of the next 40 years. Under the business-as-usual approach, IEA countries' oil imports could be as high as 28 million bbl per day, the study says. If the accelerated proposal were implemented, oil imports could be as low as 22 million bbl per day. Among other conclusions: • High priority must be given to R&D efforts that support coal and nuclear power use—efforts such as technology to minimize pollution from coal, nuclear safety, and waste management. • R&D efforts should focus on the most promising renewable technologies: residential and commercial solar heating and cooling, geothermal energy, and fuels from biomass. • Conservation measures can help reduce significantly IEA countries' total oil consumption over the next 20 years, and in some countries even surpass the contribution from new supply technologies. • Residential and commercial solar heating, fuels from biomass, and geothermal energy will compete economically with oil imports before the year 2000. IEA expects the group strategy to serve as a guide for individual IEA country national energy R&D programs. IEA, headquartered in Paris, includes Australia, Austria, Belgium, Canada, Denmark, West Germany, Greece, Ireland, Italy, Japan, Luxembourg, the Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the U.K., and the U.S. •
U.S. plastics recovery is moving rapidly Confirming earlier hints from plastics producers (C&EN, Oct. 6, page 10), official industry data show a strong bounce in U.S. plastics production from the deep low point of midsummer. The gain is so strong that it's clear that plastics are past the business downturn and into a new cycle. Plastics' new-found vigor is good news for the U.S. chemical industry in several ways. Plastics are important in themselves to the industry's financial health as one of the fastestgrowing major product groups. But they are also an advanced warning group for many basic chemicals, whose fortunes trail polymers by a few months. 8
C&EN Nov. 17, 1980
Leading resins' recovery is just past halfway Millions of lb
Low-density polyethylene Polyvinyl chloride High-density polyethylene Polystyrene Polypropylene Phenolics Urea Polyesters TOTAL
1980 production March July September
598 463 351 292 278 129 98 84 2293
470 317 301 213 235 102 81 67 1786
% decline March-July
678 599 438 371 351 141 117 92 2787
31% 47 31 43 33 28 31 27 36%
% recovery of decline July-Septi
62% 52 36 50 37 69 47 68 51%
Source: Compiled by Ernst & Whinney for the committee on resin statistics of the Society of the Plastics Industry
September brought a second thermoset plastics. Phenolics output marked upturn in plastics production has recovered 69% of the recessionary and sales after an initial big upswing drop, polyester 68%, and urea resins in August, according to the Society of 47%. the Plastics Industry's committee on Overall, plastics production is still resins statistics from data compiled running behind sales (including capby accountants Ernst & Whinney. tive use) as it has since June, the low Just two months of production gains month for sales. This indicates that have made up half of the 36% re- inventories, which swelled considercessionary drop between a March ably this spring and in late 1979, are peak and a July trough. being cut down. Specifically, low-density polyethAnd total plastics production is still ylene, the top-volume polymer in the running behind that of 1979, with a U.S., has recovered the most among shortfall of 12% in September and thermoplastics with a 62% recovery. 13% for the year to date. But these Other large advances have occurred figures are much better than the with hard-hit polyvinyl chloride, with year-to-year decline of 31% in the dog production back up to 52% of the days of July. Sales have improved March peak, and with polystyrene, even more, from a 31% year-to-year whose production has gained 50% of decline at their low point in June to the peak. Trailing are polypropylene just a 3% decrease in September. with a 37% recovery and high-density Cumulative sales to date in 1980 are polyethylene with a 36% recovery. still 13% less than in the first nine • Signs of life also are coming from months of 1979.
Ashland tries to acquire U.S. Filter In a major acquisition attempt, Ash- I stock, about 35% of all the company's land Oil has started a two-phase voting stock is held in the form of purchase aimed at buying all common convertible preferred stock in a trust stock of U.S. Filter. Total transaction for the benefit of the Flick Group of Dusseldorf, West Germany. Ashland value would be up to $260 million. Ashland Oil has agreed to acquire says it expects these shares to remain initially more than 2 million shares of outstanding. According to Ashland, it eventually common stock of U.S. Filter at a price of $33 per share. This would give may offer to sell to Flick, at Ashland's Ashland about 26% of U.S. Filter cost, a portion of the shares of stock it shares outstanding and about 17% of will acquire under the proposed tenthe voting shares. This part of the der offer. Flick, however, has made no deal would have a value of about $68.9 commitment to purchase any million. Ashland says that it intends shares. If Flick does buy some of the to make a cash tender offer for all of the remaining shares of common shares, Ashland says that it does not expect that the West German comstock at $33 per share. U.S. Filter, whose 1979 sales were pany's interest would exceed 50% of about $611 million, provides engi- the voting shares of U.S. Filter. At a special meeting last week, the neering services for energy industries, produces water treatment and puri- U.S. Filter board of directors decided fication chemicals, manufactures air not to oppose or endorse the offer by and water pollution control equip- Ashland. However, a statement by ment, and makes chemical carriers U.S. Filter says, "A majority of the used in production of cracking cata- directors have indicated an intention to accept the offer with respect to lysts and adsorbents. • Beyond U.S. Filter's common I their own common shares."
