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HARRY STENERSON
P e t r o l e u m i n d u s t r y c o n t i n u e s t o find n e w m a r k e t s for i t s c h e m i c a l p r o d u c t s . . . 1947 o u t p u t over 3 b i l l i o n p o u n d s . . · T a n k c a r a m m o n i a m a r k e t a t m i n i m u m o f $70 p e r t o n a s d e m a n d r e a c h e s record levels . · . S u p e r p h o s p h a t e p l a n t s r e s u m e p r o d u c t i o n *T*HE success of the petroleum industry ·•· in developing and marketing its nonfuel products should not be overlooked by those engaged in chemical research and manufacture. It has not been a meteoric expansion but one that has grown steadily with postwar industrial activity and gone far beyond the original alcohols. During 1947 the production of organic chemicals from petroleum and natural gas exceeded 3 billion pounds. The total was somewhat under the 3.5 billion pounds reported by the U. S. Tariff Commission for 1946, but this was due to the reduction which took place in the manufacture of butadiene for synthetic rubber. The latter dropped to 696 million pounds from 1 billion the year before. Actually, as pointed out by E. V. Murphree, president of the Standard Oil Development Co., the use of petroleum as a chemical raw material has expanded some five or six times over the amount consumed before the war. It is a growth, moreover, which probably will not be affected by future petroleum supplies as the 3 billion pounds of chemical materials so derived last year represented less than 1% of total petroleum and natural gas production. Among the aliphatic hydrocarbons derived from petroleum, ethylene, propane, propylene, and the rubber grade ' mtadiene are the most versatile in providing chemicals for industry. As a resiut, there has been an uninterrupted grov th during the past two decades in the alcohols, ketones, esters, ethers, and special hydrocarbons from cracked petroleum gases. Isopropyl alcohol, chief source for so-called synthetic acetone, was produced to the amount of only 25,000 gal. in 1921. Current production in this country is estimated at around 100 million gallons a year, all of it from petroleum. The price for isopropyl also has come down during that period from around $2 per gallon to about 40 cents per gallon. New Plasticizer
Chemical
Iso-octyl alcohol is one of the very newest chemical products to be obtained from petroleum, and it was announced by Standard only a fortnight ago that it is now available in tank car quantities. It enters the manufacture of plasticizers of the phthalate variety, and later the basic techniques employed in making iso-octyl alcohol may be employed in the produc-
tion of detergents, certain synthetic fibers, and resins. Butadiene obtained through the catalytic dehydrogenation of butylènes has displaced butadiene obtained from alcohol solely on a costs basis. The unit cost value of 1,3-butadiene sold last year was only 8 cents a pound. Still, there are industrial outlets for this chemical which are getting attention from the petroleum industry, in addition to Buna-type rubber. One is in the surface coating field where butadiene has been found satisfactory for the modification of paint and varnish resins. The research has gone beyond just resin modification, however, and Standard Oil Development makes known that despite the unsuccessful attempts in the past to synthesize drying oils, they have developed a product temporarily labeled C-oil which may be considered a complete varnish in itself—no resin and no natural oils are employed in its production. It is said to possess good abrasion and solvent resistance but thus far is not satisfactory for outdoor exposure. The naphthenic acids represent another large stake in chemicals for the petroleum companies. They are largely used to promote rapid paint drying after being processed with metals such as lead. During 1947 the production of naphthenic acids amounted to 19,830,000 a pound, and their sales unit cost averaged around 6 cents a pound. Government data are no longer issued for crude cresylic acid in order to prevent disclosure of individual company operations. The output of cresylic from both petroleum and coaltar sources during 1946 totaled 35,808,000 lb. last year.
Chemical Price Trends
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Advances CURRENT PREVIOUS
1 1 1 1 1
Ammonia, anhydrous. ton $70.00 $68.00 0.25»A Casein, Argentine, lb. 0.26Ϋ4 Menthol, lb. 9.25 9.15 1 Oil, corn, lb. 0.21 »/t 0.21 0.19 0.18 Oil, cottonseed, lb. 0.24 0.23 Oil, peanut, lb. 0.24 1 0.231/i Oil, rapeeeed, lb. 0.18 /* 0.17 Oil, soybean, l b . Decline· Acid, stearic, l b . $ 0.24>/t $ 0.26*/* Amyl acetate, ex fusel oil. lb. 0.29 0.25V» Butyl stéarate, lb. 0.43i/t 0.49 Dibutyl phthalate, lb. 0.37 0.33Ά Oil, red, lb. 0.18V« 0.20Vi Tributyl phosphate, lb. 0.67«/t 0.66 Turpentine, gum, lb. 0.38»/* 0.39V4
CHEMICAL
Butyl Derivatives Reflecting the recent sharp price decline for fermentation grade butyl alcohol and butyl acetate, lower prices are noted for stéarate, butyl plasticizers, and at least for one competing solvent. Although amyl acetate is derived from fusel oil, quotations for this product declined from 29 to 25.5 cents per pound, while tributyl phosphate dropped all the way from 66 to 57.5 cents per pound. Anhydrous ammonia also has been established at the higher price level of $70 per ton, tank cars, f.o.b. plant, freight equalized, following the initiative taken some time ago by a leading producer. Consumption of tank car ammonia remains at high levels. No changes have been made in cylinder ammonia quotations. Cylinder ammonia is normally a small percentage of total ammonia production but has many important commercial uses. Manufacturers are currently in a much better position to take care of this market than "they were a year ago due to increased production of cylinders. Part of the cylinder ammonia demand emanates from metallurgical plants and others who require hydrogen in their operations. The gas is obtained at a comparatively low cost by disassociating hydrogen and nitrogen in the ammonia. Special equipment is sold for this purpose. Ammonia. Demands Heavy Tank ca,r anhydrous ammonia mean while remains short for industrial uses and refrigeration owing to continued pressing demands for nitrogen fertilizers, solid and solution. At no time in the past has am monia demand been so heavy as at pres ent, according to the industry, and a number of manufacturers are engaged in expanding plant capacity. According to one report, the D u Pont Co. plans to transfer all of its methanol activities at Belle, W. Va.r to the newer operations at Orange, Tex., thus leaving the Belle works entirely on ammonia. Representatives of Du Pont at Wilming ton -were not able to confirm the story. Ammonia and nitrogen preparations are by tko means the only fertilizer materials showing an advancing tendency. Firmer prices are being named for superphosphate by some manufacturers in the Baltimore area, trade accounts state. Superphos phate slocks also have been reduced, and a number of plants which were suspended during tb.e summer and fall have resumed production. Purchases by the Army, ag gregating about 140,000 short tons, are understood to have been a factor in the redaction, of superphosphate stocks.
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