ilar retreats in aromatics prices—for example, about 5 cents a gal in ben zene from about $1.50 for large lots in the U.S. spot market. Now that world oil prices are again rising, chemical prices could follow after a short lag. But this is not yet certain. A U.S. re cession, which many economists now think guaranteed by current eco nomic excesses, would change the picture again. Π
AFL-CIO begins "save OSHA" campaign Organized labor has launched its spring legislative offensive with a goal of saving the Occupational Safety & Health Administration (OSHA) from what it describes as attacks from the "radical right" threatening the exis tence of the agency. In announcing the campaign, AFL-CIO industrial union depart ment president Jacob Clayman de clared the labor lobbying drive to be a "holy crusade to save life." He con ceded, though, that the reason behind labor's renewed interest in job safety is that "the opposition has been outgunning us" and "OSHA is in danger. "This session of Congress will present the gravest challenge to OSHA since its birth," Clayman told trade unionists meeting in Washing ton, D.C. "The conservatives and the right wing mean to do in OSHA. They are almost hysterical in their bitter opposition to that agency." Whether OSHA is as critically ill as AFL-CIO believes is less than certain. But what is evident is that conserva tive groups have been successful re cently in trimming the job safety agency's broad powers over private industry. Last year, for example,
groups such as the American Con servative Union's Stop OSHA Project succeeded at the Supreme Court in limiting OSHA's warrantless inspec tion powers. Another Supreme Court case is pending over OSHA's power to set stringent workplace exposure limits for benzene, a suspected car cinogen. Given this backdrop, AFL-CIO's Oil, Chemical & Atomic Workers In ternational Union (OCAW) and the industrial union department of AFL-CIO have launched a major lobbying drive. Last week their members swarmed to Capitol Hill to sell members of Congress on the virtues of the agency. A major obstacle organized labor must overcome in its lobbying efforts is years of relative inactivity in the
safety area. After the Occupational Safety & Health Act was enacted in 1970, labor perceived that the job safety battle was largely over. Notes OCAW president Al Grospiron, "Ironically, we let this movement erode from view after passage of the act. This vacuum was filled by the industry lobbyist who successfully developed a line that [industry] was now the victim of an overwhelming government bureaucracy." But since few political observers believe that OSHA is in nearly the danger labor says it is, there may be another reason for AFL-CIO's re newed safety campaign. Labor hasn't won many battles on Capitol Hill lately. Even a small victory would give organized labor something positive to point to. •
White House shapes science policy
The White House prepared a 30-page message to Congress that amounts to a statement of the Administration's science and technology policy. The message—the first such policy state ment since one issued in 1972 by the Nixon Administration—seeks Con gressional support for science and technology programs in President Carter's 1980 budget. Science and technology receive strong support in the policy state ment, which articulates the Admin istration's approach in bringing science and technology to bear on six domestic objectives: stimulating in novation in industry; meeting energy, natural resource, and food needs; promoting better health; improving the regulatory process; expanding the beneficial use of space; and under standing the forces of nature, natural disasters, and changes induced by man. The policy's thesis is that "new technologies can aid in the solution of many of our nation's problems. These technologies in turn depend upon a fund of knowledge derived from basic research. The federal government , should therefore increase its support both for basic research and, where appropriate, for the application of new technologies." The policy statement also deals with science and technology in terms of international relations. It states the Administration's support for pro grams involving international coop eration, scientific exchanges that bridge national differences, aid to developing countries, and cooperation in management of technologies with global impact. National security also is considered, with Carter expressing concern over the declining support for Grospiron: let safety movement erode research and technology evinced in
the defense budgets early in the décade. As for the Administration's strategy for managing science and technology, the policy calls for renewed attention to the partnership between the federal government and universities. "We need to ensure accountability of research funds without stifling progress in research," Carter says. The policy also calls for a better awareness of partnership among the federal agencies and it cites a need for efforts to strengthen the universityindustry partnership. D
Corco write-down turns profit to loss It's almost as if Commonwealth Oil Refining could not stand a profit. After announcing its first year in the black since 1974, the Puerto Rican refiner has taken a write-down on carrying charges for three of its joint venture operations. This has turned an $11.1 million profit for 1978 into a $53.9 million loss. The announcement of the writedown, which totaled $65 million, was made by Corco president and chief executive officer C. Howard Hardesty Jr. following a meeting of the board of directors at the company's Penuelas, P.R., complex. The re-evaluation covered provisions for estimated impairment of Corco's 50% interest in Puerto Rico Olefins (PRO) and Oxochem Enterprises. The carrying value of the two companies was reduced from $86.2 million to $22.5 million. Corco also wrote off about $1.3 million invested in Caribe Isoprene. April 2, 1979 C&EN
7
The re-evaluation of Corco's joint venture investment, according to Hardesty, is primarily the result of the November 1978 shutdown of PRO by Corco's joint venture partner, PPG Industries. Closing of PRO caused Oxochem, a joint venture with W. R. Grace, to run out of propylene oxide feedstock and to shut down. Caribe Isoprene, in which Corco has a 6.7% interest, also lost most of its feedstock supply as a result of the PRO closing, according to Corco, but has continued to operate on a severely curtailed schedule by obtaining some feedstock from another supplier. Caribe Isoprene is jointly owned with two Japanese companies, Nippon Zeon and Mitsubishi. PPG already had taken a write-off on all of its Puerto Rican operations (including PRO) of $49 million in the fourth quarter of 1978 (C&EN, Nov. 20,1978, page 10). This is in addition to a $63.8 million write-down of all of its Puerto Rican operations in 1977. W. R. Grace also is prepared for the worst on its Oxochem investment. The company's annual report, which probably will be issued this week, says of Oxochem that "a charge of $15.8 million was made against 1978 results as a provision for possible loss on the divestment of this business if a per manent solution to the raw material supply problem is not found." Hardesty says that Corco has lost large sums from its involvement in both PRO and Oxochem because of operating difficulties, low operating rates, and disadvantageous long-term contracts. Corco's share of the losses from PRO through the years totals $60 million. And, although Oxochem's operations have been profit able, Corco lost $16.1 million in 1977 because of supplying the plant with feedstock at prices below Corco's own costs. Corco says that even after re cording its share of Oxochem's earn ings, the company still lost about $7 million from the venture in 1977. D
Canada pushes for natural gas pipeline Canada is anxious to get started on the Alaska natural gas pipeline or at least on part of it. Not even a month after Canadian Prime Minister Pierre Trudeau received assurances in Washington from President Carter of the U.S. commitment to the pipeline, Canadian corporate and energy offi cials showed up in Chicago for a con sulate-sponsored seminar on the project. Construction on the long-delayed pipeline to bring Alaskan natural gas into U.S. markets could start this 8
C&EN April 2, 1979
Alaska highway gas pipeline would stretch 4700 miles
year, if remaining institutional problems can be ironed out. Murray E. Stewart, executive vice president of Foothills Pipe Lines (Yukon) Ltd., which is scheduled to build the Ca nadian part of the pipelines, if and when it begins, blames delays in construction on regulatory impedi ments in the U.S. These might be re lieved, however, with Carter's immi nent proposal to Congress of a reor ganization plan that would establish the Office of the Federal Pipeline Inspector. More than 20 trillion cu ft of natu ral gas is currently available from the North Slope, and chances appear good that more will become available in the future. As presently proposed, the Alaska Highway Gas Pipeline would bring it south through Canada. The line from Prudhoe Bay would follow the right of way of the existing oil pipeline as far as Fairbanks. It would then turn east and enter Can ada near Whitehorse and run along the eastern side of the mountains to a point just north of Calgary. There it would branch into two legs. The western leg would proceed to Cali fornia and the eastern leg to the vi cinity of Chicago. Total length of the pipeline would be about 4700 miles, 2000 miles of it in Canada. A second feeder line from the Mackenzie Delta also could be included. Noting that the line will be carrying U.S. gas to U.S. markets, Stewart also points out the immediate Canadian interest in creating badly needed jobs
and income from equipment manu facturing. However, the Canadian stake in the pipeline likely will go well beyond the creation of jobs. Canadian officials at the seminar strongly suggested that they are anxious to sell surplus gas as soon as possible. One manifestation of this desire is a proposal to "prebuild" the Canadi an portion and lower U.S. portions immediately and let the rest of the pipeline develop in its own time. This would provide the Canadians with a dedicated pipeline to move Canadian gas. The question is how much gas would be available and at what price? Late in February, the National En ergy Board of Canada concluded that Canada had a surplus of about 2 tril lion cu ft of gas that could be exported over eight years. But the amount that would be for sale depends on what is now being called "deliverability," something that depends on future prices. Barry Mellon, deputy minister for energy resources for the province of Alberta, didn't hesitate at the semi nar to endorse "the notion of addi tional gas sales to Canadian and U.S. customers." But he offered no firm estimate of available volumes. Like wise, John G. Stabback, chairman of the National Energy Board, indicated a favorable response to both the pipeline and the "prebuild" project but hedged when it came to specify ing how much gas would be available for sale. Π
