INDUSTRY & BUSINESS
Arctic oil, gas lure chemical industry Enormous Arctic feedstock supply will change chemical map— giant complexes on East Seaboard, Chicago area, Far West Mention of North America's Arctic area usually evokes visions of barren, snow-covered lands, frozen oceans, and possibly polar bears and a few Eskimos. The next decade, however, promises a dramatic change in this stereotyped picture: oil derricks breaking the monotonous white expanse, huge oil tankers piercing the treacherous icejammed seas, and oil and gas pipe lines plunging southward. Behind these changes lie the enor mous oil reserves found to exist in the Far North, a discovery bound to have far-reaching effects on the U.S. chemical industry. Oil experts agree that the discovery of petroleum at Prudhoe Bay on Alaska's North Slope has already had a dramatic impact on the chemical industry. It has, for example, set back by about five years
the commercialization of processes for making liquid hydrocarbons from coal; dimmed, but not eliminated, the chem ical industry's hopes for increased oil import quotas; and caused a realign ment in priorities for shale oil, tar sands, and nuclear energy projects. The Alaska oil discovery has also spurred development of new tech nologies required to extract and con vey petroleum and natural gas from a region that is exposed to tempera tures as low as —70° F. C&EN asked chemical executives, U.S. and Canadian government offi cials, and management consultants to discuss the possible impact of Arctic oil on the chemical industry. Most of these persons queried note that the impact is extremely difficult to estimate because no decisions have
been made on prices for the crude oil or on the final route by which the oil will reach the market. Pending changes in U.S. foreign oil import quotas and free trade zones further complicate such estimates for the im mediate future. In general, however, Arctic oil and, more particularly, natural gas beckon as a seemingly endless feedstock supply for the North American chem ical industry. A slow evolution should bring about the development of giant chemical complexes along the North east Seaboard of the U.S. and Canada, the Chicago area, and the Far West. As William J. Haude, president of Northern Petrochemical Co., puts it, "North is the direction the U.S. chem ical industry must turn." He believes that the Chicago area will be first to
Oilmen look for routes to move Alaskan oil to world markets
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develop a chemical industry based on Alaskan and Canadian hydrocarbons. Northern Petrochemical, for example, already plans to build a $200 million polyolefm complex at Joliet, 111. Other corporations plan additional invest ments in the area totaling $150 mil lion. Mr. Haude is quick to point out that Joliet will become the largest petrochemical complex outside the Gulf Coast. He notes that the Gulf Coast has enjoyed a "virtual monop oly" in petrochemical production be cause of its proximity to low-cost hydrocarbons. "The discovery of ma jor petroleum reserves in western Canada and Alaska prefaces a gradual shift in petrochemical production facil ities to the upper Midwest area," he notes. Questions. Before the petrochem ical industry begins a northern migra tion, however, a great many questions will have to be answered. For one thing, more definite estimates of the oil and gas reserves in Alaska and Canada will be required. Recoverable reserves in the Prudhoe Bay area of Alaska are placed at 5 billion to 10 billion barrels. All of Alaska's North Slope may prove to hold some 45 billion barrels of oil and 270 trillion cu. ft. of gas. For Canada (which
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Before y o u w r a p u p t h a t resin project of yours, investigate TYZOK organic titanates. T h i s coupon will b r i n g y o u a n application bulletin.
w i t h w h a t resin. W e k n o w it h a s done r e m a r k a b l e jobs w i t h epoxies, polyesters, alkyds, silicones, olefins, p h e n o l formaldehydes, polycarbonates a n d polylactones.
Du Pont Company Organic Chemicals Dept. Room 7742, CEN911 Wilmington, Del. 19898 Please send me a technical bulletin which describes the plastic and resin applications of TYZOR organic titanates. Name_ Title Company Address City _Zip_
State
Oil Mill· T) TYZOR* organic titanates "EG. U.S. PAT.Off.
Circle No. 2 on Readers' Service Card
NOV. 10, 1969 C&EN 19
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