Carbide gives capital spending a hard look - C&EN Global Enterprise

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be developed. Oil reserves amount to about 310 million metric tons. Reserves of gas are put at 320 billion cu m. Until the recent problem, some 350,000 bbl of oil were flowing from the field daily through a 220-mile pipeline that connected with a terminal on the Tees Estuary on England's east coast. A 275-mile pipeline shortly will bring gas to a terminal at Emden, West Germany. •

Diamond Shamrock drops polypropylene In a surprise move in the middle of a rapid buildup in production capacity, Diamond Shamrock is letting go of its polypropylene business. Last week, the company disclosed it had sold its polypropylene complex in La Porte, Tex., near Houston, to ARCO Polymers subsidiary of Atlantic Richfield for about $150 million. The sale will bring Diamond an after-tax gain of about 40 cents per share or roughly $15 million in the second quarter. Diamond currently is expanding the La Porte polypropylene plant from 160 million lb per year to 400 million lb by late this year. The new capacity would be about 12% of total U.S. capacity for this thermoplastic resin. The capacity addition at La Porte comes after substantial earlier expansions by Diamond at this site. Behind the big divestment is a two-part story. On one hand, Diamond Shamrock became concerned that polypropylene's popularity was drawing too many well-heeled, feedstock-rich oil company producers into the picture. By the end of the 1970's, Diamond envisioned itself at a possible disadvantage in competing with these oil giants. The reason is that the oil producers would have abundant supplies of their own feedstock propylene for polypropylene production, whereas Diamond would have to obtain much of its propylene needs outside the company. By contrast, Diamond has arranged a good source of future ethylene supplies for its polyvinyl chloride production through a tolling agreement with Phillips Petroleum. Diamond will pipe the ethane-propane mixture from Amarillo, Tex., to the Houston area, where Phillips will convert these light feedstocks to ethylene at its new plant being built at Sweeny. Diamond will then use the ethylene for vinyl chloride and solvents production near Houston. The tolling deal with Phillips apparently will not be a good enough source of propylene, a coproduct with ethylene. ARCO has been looking at poly-

propylene as a possible addition to its plastics line for some time. A year ago, in a C&EN interview, ARCO Chemical president Robert D. Bent said that the company had looked into polypropylene and might get in. However, Bent also noted the possibility of industry overbuilding in polypropylene (C&EN, March 15,1976, page 14). Apparently, ARCO now weighs the positives in polypropylene as more important than the negatives. Certainly, ARCO will have adequate propylene feedstocks for polypropylene from its two big new steam crackers at Channelview, Tex., outside Houston. Indeed, having a captive polypropylene outlet may be a good economic safeguard for these two crackers. D

Carbide gives capital spending a hard look Union Carbide has cut its capital spending program for 1977 about 10% from the $1 billion projected last fall (C&EN, Nov. 29,1976, page 10) and the company is exercising greater selectivity as to where it puts its money. However, Carbide is still actively investing in pioneer projects such as its advanced cracking reactor prototype to produce ethylene directly from crude oil, announced last week. Carbide has warned repeatedly that it might reduce its capital spending programs if either the economy faltered or the company's performance fell below expectations. Chairman William S. Sneath now

says that 1977 construction expenditures will be closely monitored. It appears that capital spending will fall in the $900 million range. Sneath says that the heavy construction program generates high preliminary operating expenses that affect earnings adversely before the new facilities are fully operational. However, in the future Carbide will plan these investments carefully to hold the short-term penalty to an acceptable level while strengthening the company's long-term potential. Carbide will begin construction next year of its long-awaited prototype advanced cracking reactor (ACR) (C&EN, April 21, 1975, page 37). Feedstock flexibility also allows production from a wide range of petroleum feedstocks including both foreign and domestic crude. The unit will be built at Carbide's Seadrift, Tex., petrochemical site at a cost of about $15 million. Completion is slated for 1979. The new unit will recover up to 70% of the contents of a barrel of crude oil as ethylene and other chemical intermediates, including acetylene, propylene, and butadiene. Conventional petroleum cracking operations give only about 40% maximum chemical yield, according to Carbide. The company expects to price its ethylene output about 3 cents per lb less than that produced by conventional methods. The demonstration unit is an outgrowth of Carbide's codevelopment and licensing agreement with the Japanese firms of Kureha Chemical

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May 2, 1977 C&EN

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Industry Co. and Chiyoda Chemical Engineering & Construction. The prototype will be used to carry out scaled-up feasibility studies that could lead to the construction of a world-scale commercial unit in the mid-1980's. •

NAS starts drive on human rights In a move demonstrating escalating concern by U.S. scientists over mistreatment of colleagues abroad, the National Academy of Sciences last week publicly launched a "sustained effort" oh behalf of foreign scientists whose human rights are violated, at a press conference attended by major media representatives. First step in the effort is a campaign by NAS's new Committee on Human Rights on behalf of eight scientists in three countries— "all victims of grave official harassment for political reasons." An ongoing, institutionalized, and public effort in support of scientists' human rights—already enlisting participation of 258 NAS members— is a new departure for NAS, whose past efforts have consisted mainly of "quiet diplomacy," in an "occasional and frankly sporadic" manner. Cause of the stepped-up effort: increased concern within NAS, and perhaps reaction to criticism from without at NAS's "not speaking out." As well as serving as a focus for NAS members' efforts, the committee will urge action by individual scientists, scientific societies, and governments in the U.S. and abroad. Two scientists on the current list are leading Soviet human rights activists—Dr. Yuriy Orlov and Dr. Sergei Kovalev. A distinguished high-energy physicist, Orlov was arrested in February during an apparent crackdown on the Soviet human rights movement, but no charges have yet been filed and his whereabouts are unknown. Kovalev, a biologist who has done "pioneering" work, is now serving a seven-year sentence at hard labor for allegedly circulating a forbidden publication, and is reported to be ill. Five Argentinian physicists also are on the list—Federico Alvarez Rojas, Gabriela Carabelli, Dr. Juan Carlos Gallardb, Dr. Antonio Misetich, and Eduardo Pasquini. Each disappeared under mysterious circumstances in 1976, and there is concern for their lives. Several have been accused by Argentinian authorities of association with "subversive" or "guerrilla" groups. The NAS committee also will act 8

C&ENMay2, 1977

on behalf of Dr. Jose Luis Massera of Uruguay, considered one of Latin America's top mathematicians. A leading member of Uruguay's Communist Party—outlawed in 1973— Massera was arrested in October 1975, reportedly was tortured, and now is being tried for "subversive association." The committee will try to obtain full information on the eight cases, and through its activities and those of other scientists to press for an end to their mistreatment. For example, it will seek commutation of Kovalev's sentence on humanitarian grounds and resumption of his career. •

New NAS members include 13 chemists At its annual meeting in Washington, D.C., last week the National Academy of Sciences elected 60 new members in recognition of their distinguished continuing achievements in original research. Included in this number are 13 chemists. The new members bring total membership in the 114-year-old organization to 1219. The chemists elected to the academy include: Dr. Samuel Epstein, professor of geochemistry, California Institute of Technology. Dr. Norman B. Hannay, vice president of research and patents, Bell Laboratories. Dr. George H. Hitchings, president, Burroughs Wellcome Fund Research Laboratories. Dr. Israel R. Lehman, professor and chairman, department of biochemistry, Stanford University. Dr. Seymour Lieberman, professor of biochemistry, Columbia University. Dr. Elizabeth F. Neufeld, chief, section on intermediary metabolism, National Institutes of Health. Dr. Richard M. Noyes, professor of chemistry, University of Oregon. Dr. Charles N. Reilley, Kenan Professor of Chemistry, University of North Carolina, Chapel Hill. Dr. Howard Reiss, professor of chemistry, University of California, Los Angeles. Dr. Lewis H. Sarett, president, Merck Sharp & Dohme Research Laboratories. Dr. Philip S. Skell, professor of chemistry, Pennsylvania State University. Dr. Herbert Tabor, chief, laboratory of biochemical pharmacology, National Institutes of Health. Dr. George R. Tilton, professor of geochemistry, University of California, Santa Barbara. •

Scientist emigration to U.S. has declined Between 1966 and 1975 about 100,000 scientists and engineers emigrated to the U.S. Although it's uncertain whether these persons all decided to ply their trade once here, 62,000 of the immigrants entered the U.S. to stay, according to a newly released National Science Foundation survey. NSF's data show that immigration took place in two distinct patterns because of changes in U.S. immigration policies. Between 1966 and 1972, according to Immigration Service figures, an average of 11,500 scientists and engineers entered the U.S., many from European countries. During this period Immigration Service regulations gave preference to technically trained persons from abroad, as well as to relatives of immigrants already living in the U.S. But in the early 1970's immigration policies were changed and scientists and engineers were no longer considered to be in short supply. By 1973 immigration of scientists had declined, according to NSF, and from 1973 to 1975 the average inflow was 6500 per year. Yet in the 10 years from 1966 to 1975 the average number of all immigrants did not vary greatly. The reasons for immigration, says NSF, were largely economic. One half of the immigrant scientists and engineers increased their annual income more than 200% above the salary they received at home. In some cases other reasons were present, such as a hostile political climate in the home country or limited research opportunities. As a group, chemists represented the largest number of scientists entering the U.S., although they generally accounted for only about 10% of all scientists entering each year. Chemical engineers, on the other hand, made up about 5 to 6% of all engineers emigrating to the U.S., well behind the number of civil and electrical engineers. Altogether, about two engineers entered the U.S. for every scientist. •

Chemists are small fraction of immigrant scientists Total scientists and engineers Total scientists Chemists Total engineers Chemical engineers

1966

1974

1975

7205

5969 6931

2290 2103 2283 874 592 675 4915 3866 4648 325 333 438

Source: National Science Foundation