EXECS OPTIMISTIC ON CHEMICAL FEEDSTOCKS - C&EN Global

Mar 24, 1975 - But the same wrestling for materials, in the market place and in Washington, D.C., has given industry executives a new confidence as we...
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The Chemical World This Week

EXECS OPTIMISTIC ON CHEMICAL FEEDSTOCKS The past two years of fighting for scarce raw materials have shown the chemical industry how insecure its essential supplies really are. But the same wrestling for materials, in the market place and in Washington, D.C., has given industry executives a new confidence as well. With some notable victories behind them, especially in winning priority for hydrocarbons, some chemical officials now view future supplies with cautious optimism. Two such predictions greeted chemical engineers last week as they gathered in Houston for the national meeting of the American Institute of Chemical Engineers. Keynoting the meeting with a look C&EN staff photo

Bradshaw, it would be best to stop using oil as fuel altogether, although for the next few decades there will not be such a choice. Even so, Bradshaw predicts that the share of domestic U.S. oil devoted to chemical feedstocks probably will rise, from the present level of 5% to possibly 11 or 12% by 1985 or 1990. For the present, Bissinger says that residential heating still should rate first for the use of oil. "But after home heating, it seems to me, no use of petroleum requires a higher priority than that of feedstocks for the petrochemical industry. The choice is chemicals or calories." On the other side of the hydrocarbons supply spectrum—natural gas—Bissinger also offers some cheer. He refers to the Federal Power Commission's report released earlier this month on the natural gas industry, which recommended a return to market-directed supply-demand relationships— that is, free market pricing. "If Congress adopts this recommendation, it will be interesting to see the effects not only on the pricing of gas

in terms of competitive fuel values, but also its value as a petrochemical feedstock. We will then find out whether the gas is more valuable as a fuel or as a source of chemicals. My guess is that the chemical use will win out." Both speakers rule out near-term switches for chemical feedstocks to nonoil, nongas sources. Both men are particularly emphatic on this point about coal. Says Bissinger, "The economics of coal production, transportation, liquefaction, and gasification are such that it appears improbable coal will be able to compete with gas or oil as a low-cost source of feedstocks for a good many years to come. "All in all, I'm not inclined to believe we're coming back to dependence on coal-derived feedstocks. I think we'll be developing our coal resources primarily for their fuel value rather than as a source of chemicals." On the same question, Bradshaw had a more succinct answer for the press after his speech. "There's not enough capital available to get enough coal to get enough aromatics." G

EPA spells out drinkinc water standards Bissinger (left) and Bradshaw

into the feedstock future were Frederick L. Bissinger, vice chairman of Allied Chemical, and Thornton F. Bradshaw, president of Atlantic Richfield. The basis for the turn toward optimism on feedstocks by these executives is a political priority emerging to direct scarce hydrocarbons toward the highest value-added, job-heavy uses. Bissinger told his audience, "There is a growing body of opinion that our valuable liquid or gaseous hydrocarbons ought not to be indiscriminately burned as fuel, at least not until industry's needs for the chemical building blocks in petroleum have been met." Bradshaw made the same point, repeating the now-famous line by the Shah of Iran, ' O i l is too valuable to burn." But the oil company chief carries the argument one step further than does Bissinger. To 6

C&EN March 24, 1975

The Environmental Protection Agency has proposed interim drinking water standards for the nation's 240,000 public water systems. The standards set maximum contaminant levels for certain inorganic chemicals and pesticides, and they set a limit for the total concentration of organic chemicals. They also specify maximum levels for turbidity and for microbiological contaminants in drinking water. These standards can force the chemical industry to further its cleanup of discharges into waterways. Further, they can limit the industry's disposal of wastes in deep wells (C&EN, Feb. 24, page 16). The new interim standards will be promulgated in June and will take effect in December 1976. Meanwhile, EPA has asked the National Academy of Sciences to conduct an in-depth study of the maximum contaminant levels that should be set to protect public health, and to identify contaminants that are hazardous to health

but for which no maximum levels can be determined. The study is to be completed by December 1976 and will be the basis for revision of the interim standards. The revised final standards will then be promulgated in September 1977 and made effective March 1979. Inorganic chemicals for which maximum contaminant levels have been established include those containing arsenic, barium, cadmium, chromium, cyanide, lead, mercury, nitrate, selenium, silicon, and fluorides. The interim standards specify that total concentration of organic chemicals is not to exceed 0.7 mg per liter. In addition, levels are designated for nine pesticides. However, aldrin, dieldrin, and DDT, which have been identified as hazardous in several legal proceedings, are not on the list of standards. EPA says it will propose standards for these compounds "as soon as a study of these substances is completed." Radiological contaminants also are not regulated at this time. D