The Chemical World This Week
REFINERS MOVE TO AVERT CAPACITY CRISIS Plans for petroleum refinery expansions in the U.S. are suddenly turning from an almost dried-up trickle to a flood. And it's a flood that's apparently coming none too soon as U.S. refining capacity has been in danger of dropping critically short of product demand. The largest of recent expansions disclosed so far is Exxon's 350,000 barrel-a-day addition to domestic refining capacity at a cost of more than $400 million. Clark Oil & Refining, Mobil Oil, and Standard Oil Co. of California also have revealed plans within the past month to ex-
The remainder of Exxon's expansion will be at refineries in Baton Rouge, La., andBayway, N.J. Clark will add 45,000 barrels a day of new crude capacity to its Wood River, 111., refinery along with additions and modifications to other refining units. The Wood River expanded capacity will be 80,000 barrels a day. Mobil will add 150,000 barrels a day to its Paulsboro, N.J., refinery, bringing the crude capacity to 250,000 barrels a day. Foster Wheeler Corp. will do the engineering and construction. This addition follows closely the startup of Mobil's Joliet, 111., refinery (daily capacity of 160,000 barrels), the last new large refinery built in the U.S. in several years. Much of the refinery additions planned by California Standard are aimed at handling high-sulfur imported crude oils, as will the other expansions. The capacity of its Perth Amboy, N.J., refinery will be increased by 75,000 barrels a day to 150,000 barrels a day, and capacity of its Richmond, Calif., refinery will be increased by 175,000 barrels a day. At the company's refineries in El Segundo, Calif., and Pascagoula,
Miss., additions include desulfurization units, sulfur recovery units, storage, and other facilities. Most of these companies' refinery capacity expansions will not come on stream until late in 1976. As a result, the supply-demand crush on refined products will not lessen anytime soon without more imports of refined products. That more expansion of refining capacity is needed has become a general view. The National Petroleum Council, in a summary report just issued, estimates that at least 9 million barrels per calendar day of refining capacity must be added by 1985 to meet projected petroleum product requirements. Meanwhile, various methods are being used to meet demands from existing refineries. Currently, U.S. refineries are averaging operating rates of about 90% of rated capacity. The rate varies some depending on availability of crude oil and mechanical problems in the refinery. Even if the crude oil were available, operating refineries at 91 to 92% of capacity for the next two years would be difficult, if not impossible, according to some company spokesmen.
Progress on cleaner a to engines probed Exxon's Baytown, Tex., refinery
pand capacity and to add units to handle crude oils with higher sulfur contents than they now usually refine. These capacity expansions combined total some 800,000 barrels a day—nearly 6% of the 13.6 million barrels a day the American Petroleum Institute estimates are in place in the U.S. today. These expansion plans bode well for petrochemicals. Even though chemicals take only a small fraction of total crude oil demand, any addition to refining capacity helps maintain a steady flow of chemical raw materials. Most of Exxon's additions— 250,000 barrels a day—will go in the Baytown, Tex., refinery. Fluor Engineers and Constructors, Inc., has received the contract to do the work. When on stream in late 1976, the Baytown refinery capacity will reach some 600,000 barrels a day. 4
C&EN May 21,,1973
Just days after Detroit's major auto makers said they will not take the Government to court over interim exhaust standards set for 1975 models, two Senate panels scrutinized the industry's R&D efforts on cleaner engines, with an eye toward further federal prodding if necessary. Much of the scrutiny concerned the cost of developing such cleaner auto engine systems and on who should pay the cost of developing them. At a meeting of the Senate Subcommittee on the Environment last week, an official of the Environmental Protection Agency voiced its disapproval of stepped-up funding of federal R&D on alternatives to the internal combustion engine. Robert L. Sansom, EPA assistant administrator for air and water programs, told the panel that stringent federal standards, rather than more federal money, are the key to better industry efforts. He also pointed out that the spending of three major firms on emission control develop-
ment was well over $1 billion last year and this year. However, EPA will continue its modest developmental program on the Rankine cycle engine and gas turbine engine. Dissatisfied with the EPA position, Sen. John V. Tunney (D.-Calif.), the panel chairman, is expected to press for action on his bill, S. 1055, which calls for expanded auto R&D by EPA. More federal funds for alternative auto technologies is also among the recommendations of Dr. Philip Handler, president of the National Academy of Sciences. Testifying last week before the Senate Subcommittee on Air and Water Pollution chaired by Sen. Edmund S. Muskie (D.-Me.), Dr. Handler hastened to point out that he was't advocating direct support to major auto makers but assistance to smaller firms and universities. Another R&D need to be tackled by EPA, he adds, is accelerated development of diagnostic instruments for emissions.
in Briel: Both Dr. Handler and Dr. Ed ward L. Ginzton, chairman of the NAS panel on auto emissions, criticized catalytic control devices— the system judged most likely to be available by 1976. The dual-catalyst system, which will boost auto re tail prices $290 above 1973 vehicle prices, is the "most disadvantageous with respect of first cost, fuel econ-
Several oil companies are increasing refining capacity, and none too soon as U.S. capacity has dropped dangerously short of product demand. Leading the expansion surge is Exxon, with a 350,000 barrel-a-day addi tion. (Facing page) Auto makers' R&D efforts on cleaner engines are scrutinized by two Senate panels—with an eye toward further federal prod ding if necessary. Catalytic control devices draw some highlevel criticism. (Facing page) Ethylene oxide and propylene oxide face serious problems for the next few years as feed stocks become scarce and higher priced. Both oxides are in short supply even though output spurted last year. (Page 8)
Handler: more auto R&D
omy, maintainability, and durabil ity" among control systems, Dr. Ginzton claims. The "most-promis ing" system—the carbureted stratified-charge engine—is superior on all these points, but it may not be available in large numbers by 1976. Dr. Handler also brought out the high consumer costs involved in emission control systems. He pointed out to the panel that na tional spending on such systems could vary "by ranges of upward of $15 billion annually," depending on the technology chosen. More im portant, he points out, there has been no adequate cost and risk/benefit analysis. There are no hard data to estimate with the desired precision the costs for depletion of fuel stocks or mineral reserves, nor to understand the effect on the economy or employment. Similarly, there has been no adequate assess ment of the health benefits, he says. The NAS president also questions whether car sales will follow past growth curves, contending that pre vious extrapolations "will prove ex cessive." Sales patterns should also be changed, he believes, by impos ing taxes on cars by weight and horsepower and by raising taxes on gasoline.
Container board users should brace for a shortage, which is expected to become critical later this year. Little relief is in sight for this workhorse of the packaging industry. (Page 13) The U.S. faces a growing scar city of mineral raw materials and to meet demand will require recycling, conservation, new technology, processing lowgrade ores, in addition to im ports. (Page 14) Indiana University's chemistry computer exchange center is expanding its activities. Origi nally set up to exchange compu ter programs in quantum chem istry, the center is seeking to serve a wider range of chem ists. (Page 19) Glenn T. Seaborg is the 1973 recipient of AlCs Gold Medal Award, presented annually to "recognize and stimulate ac tivities of service to the science of chemistry or the profession of chemists or chemical engi neers." (Page 20)
Finnigan Corp. has developed an interactive data system that permits faster and more mean ingful handling of the data from gas chromatograph/mass spec trometer systems. (Page 22) A carbon-13 Ν MR spectrometer that costs half as much as other units is being marketed by Mar ian. It is smaller and easier to operate than other such instru ments. (Page 22) Polyester fibers can be rendered less flammable by a technique developed at Amoco Chemicals, whereby bromine is incorporated into the polyester chain. (Page 27) ACS hasn't abandoned its tradi tional objectives. In fact, in creased activity in the profes sional area is "right in line with the goals set forth in [the ACS] charter," says Executive Direc tor Robert W. Cairns. (Page 28) All ACS computer operations are now housed in Columbus, Ohio, following transfer of member and subscriber record servicing operations from Washington to the Chemical Abstracts Service Division. (Page 29)
Chemical & Engineering News May 21, 1973 Volume 51, Number 21 3 4
Editorial The Chemical World This Week
7 16
Concentrates I ndustry/Government/International Science/Education/Technology
8 14 19 20 22 28 46 46
The Departments Industry/Business Government Science AIC Award Technology ACS News/People Newscripts Letters Cover design: Norman Favin Cover photo: C&EN's Thomas T. Bradshaw
May 21, 1973 C&EN
5
