sharply rising exports. Had automobile sales lived up to early estimates, use of LPG by the rubber industry might have doubled, the review adds. The 196,000 long tons of synthetic rubber capacity which was added to the rubber industry's existing capacity this year should swell future demand for LPG. Other Uses. Other large outlets for LPG include domestic and commercial uses, mainly in heating, cooking, and agriculture (4.3 billion gallons); motor fuel (943 million gallons); industrial and miscellaneous uses (871 million gallons); and gas manufacturing (137 million gallons). Of all major LPG outlets, only one—gas manufacturing—declined. Growth of natural gas pipelines and a mild winter helped decrease sales 2 5 % . Capacity. LPG production kept pace with this year's increased demand for LPG, the report says. This year, 39 new natural gasoline plants and nine expansions went into operation, increasing daily production capacity by 3.2 million gallons. Underground storage capacity for natural gas liquids increased to 2.3 billion gallons in 1960, up 17% from 1959, the report points out. The trend in storage facilities is toward mined caverns near marketing areas. Although small (11 million gallons), refrigerated LPG storage is growing fast. Major transportation advances in 1960 were use of 30,000-gallon tank cars and 500 gallon-per-minute loading rates for tank trucks. Trucks carrying 10,000 gallons also gained wide acceptance. Piggyback movement of highway transports was approved by regulatory agencies this year, too.
New AEC Uranium Buying Policy Urged Program is needed to maintain strong uranium industry The capability of the uranium mining and milling industry to supply raw material for growing atomic energy applications will be seriously endangered unless the Atomic Energy Commission modifies its present uranium purchasing policies. Dean A. McGee, president of Kerr-McGee Oil Industries (a company involved in
both uranium mining and milling), told the Atomic Industrial Forum meeting in San Francisco that otherwise by the end of 1966 this country could be faced with inadequate uranium reserves and obsolescent, inefficient uranium milling facilities. In November 1958, when AEC revised its uranium purchasing program, exploration, mining, and milling had reached a peak, Mr. McGee says. Since that time, exploration for new reserves has been declining and has now virtually ceased. Prior to the 1958 revision, AEC had guaranteed to purchase uranium concentrates from the mills until Dec. 31, 1966. The revised program provides for buying uranium concentrates only from those deposits discovered before the revision date. Mill operators are allotted production quotas from their own reserves and from specific independent ore producers. If these reserves fail to develop as expected, the mill operator cannot develop new reserves to make up the deficit. Under these circumstances, Mr. McGee points out, there is little incentive for exploration to develop new reserves, for research on milling processes, or even, for adequate maintenance programs at the mills. To ensure a continuing, strong uranium industry, Mr. McGee suggests that AEC adopt a program to purchase newly discovered ore reserves. The program should provide a limited market through 1966 for those reserves which are of a quality to permit full exploitation in a competitive post-1966 market. AEC should also modify its present regulations to allow mill operators with insufficient ore (to fulfill their contracts) to have complete freedom in acquiring additional ore. Mr. McGee also suggests that AEC: • Develop incentives to encourage good conservation practices in exploiting existing reserves. • Review the possibility of integrating uranium milling with reactor feed production. Some mills, for example, might be in a position to add facilities for the production of uranium dioxide of reactor grade purity. • Formulate and announce a program for the post-1966 period if security considerations will not permit disclosure of pre- and post-1966 uranium requirements and the size of the 1966 stockpile.
Humble Oil Plans New Company Structure Humble Oil & Refining Co. continue* to revamp its organizational structure by consolidating operations anc streamlining management. Four operating regions in the U.S. for exploration, production, and marketing are planned, the boundaries of each re gion conforming, generally, to geo graphic lines. Exceptions will be made where such lines cross oil anc gas basins. Then the lines will be bent to include the basin in its entirety within one region. The new program says Humble president Morgan J Davis, will be implemented as quickl) as possible. The four geographic regions are: • The Esso Standard, eastern re gion, with offices in New York City will replace the Esso Standard divisioi and the Ohio division. • The central region, with offices ii Tulsa, Okla., will include most of trw area previously served by Humble* Carter and Oklahoma-Pate divisions. • The southwest region, with office in Houston, Tex., will include th< southwestern states and California Washington, Oregon, Alaska, an( Hawaii. • The southeast region, with office in New Orleans, La., will include soirn of the Humble and Carter exploratioi and producing areas in addition t< areas in the Southwest in which Ess< Standard is currently selling. Superimposed on the geographica regions will be three functional divi sions: manufacturing (which include all refineries), marine (which include present marine departments of tin Esso Standard and Humble divisions) and the Enjay Chemical Co. Th Humble Pipe Line Co. will continue to operate as a separate corporation General offices of Humble Oil will re main in Houston, Tex. Carter, Esso Standard, Humble, an< Oklahoma-Pate, Humble's present op erating divisions, will cease to exis when the new program is completed But because of the intricacies of th proposed changes, the program wil not be accomplished at once. So, un til the changes are completed, thi company will continue operating un der its present system of supervision says Mr. Davis. The planned reorganization is en pected to have no effect on the com pany's product brand names. DEC.
26, 1960
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