The Chemical world This week
NIXON ENERGY MESSAGE GETS MIXED REACTION Definitely beneficial in the long run, but a less than realistic approach to meeting short-term needs. This is the business reaction to President Nixon's recent wide-ranging energy message that emerged in VVashington, D.C., last week at a conference sponsored by the U.S. Chamber of Commerce in which producers and consumers of energy got together with Administration officials to dis cuss implications of the message and energy problems in general. The consensus was that even if the incentives to greater energy pro duction outlined in the message work, it will be at least three years before domestic output of natural gas and oil begins to pick up. In the meantime energy demands could be met by the increased use of coal— the U.S. has half of the world's known coal reserves. However, coal has its own built-in set of problems, most notably a high sulfur content. Shearon Harris, president of Carolina Power and Light Co., says that if energy is to be available now, Environmental Protection Agency standards on sulfur content of flue gas emissions must be relaxed. He says that the technology is just not available to clean up stack gases to meet laws passed by state and local governments based on EPA stan dards. Richard Fairbanks, a member of the White House Special Energy Committee, says that the Adminis tration is very much aware of the problem and that intensive review of the standards is under way. One possible approach might be moni toring the sulfur content of a sur rounding area rather than at the point of emission from a stack. He says that EPA has been trying to convince some state and local gov ernments that their laws are un tenable. Charles DiBonna, special consultant to President Nixon on energy, suggests that burning highs.ulfur coal would meet most state standards except under certain at mospheric conditions, at which time low-sulfur coal could be used. Whether or not the coal problems can be settled, large quantities of natural gas and oil still will be necessary, and it may not be eco nomically feasible to import them. Kerryn King, a Texaco senior vice president, points out that although the oil import quota and tariffs have been lifted, the Phase III price re4
C&EN May 7, 1973
DiBonna: no fuel rationing
straints have not. He says that foreign crude oil is no longer cheaper than the domestic product and that distillates and gasoline most cer tainly are not. In fact, if distillates and gasoline must be imported to meet demands, as was suggested by Mr. Fairbanks, companies would be incurring a substantial loss, Mr. King says. In other words, it won't be done unless price restraints are eased. Many at the conference were con-
cerned about the possibility of some kind of fuel rationing by the Gov ernment next winter and wanted to know if any priorities had been set. Mr. DiBonna replied that even though the President has been given the power to allocate fuel resources, it's not felt that such action will be necessary since at most there will be a difference of only a few per cent between supply and demand. Mr. Fairbanks added that federal oil from offshore drilling is now being diverted to independent midwestern refineries in an effort to ensure enough energy for farmers. Some of the long-term implica tions of the energy message were also discussed at the meeting. Mr. DiBonna says that since the mes sage was disclosed, nine major oil companies have indicated that they are planning to build new refineries in the U.S. Industry apparently is happy about the encouragements to build deepwater ports and carry out offshore drilling. However, here again price restraints were men tioned at the meeting as a possible barrier to any action because of the large capital investment involved.
EPA role unchanged ν ith new acting head President Nixon's surprise plucking of William D. Ruckelshaus from his job as administrator of the Environ mental Protection Agency to serve as acting director of the FBI ap parently will not result—at least for the near term—in either a hiatus of activities or significant changes in EPA's programs. This is largely a result of the choice of Robert W. Fri, formerly number two man at EPA and a sort of alter ego of Mr. Ruckelshaus, to serve as acting administrator of EPA. Commenting that he foresees "no shift in policy nor slackening of pace as we pass through this transi tion," Mr. Fri says, however, that he intends to hold the post for 30 to 60 days and then return to private life. *He says his decision to leave EPA to return to his previous job as a partner at McKinsey and Co., Inc., was made prior to Mr. Ruckels haus' sudden transfer. What Mr. Ruckelshaus will do after his stint at the FBI isn't clear. He maintains that he does not want to be named permanent FBI di rector nor does he expect to return
to the EPA post from which he just resigned. Mr. Ruckelshaus has headed EPA since its creation in 1970 and generally has been viewed as a highly capable federal adminis trator who is a tough but fair en forcer of federal pollution control laws. At press time there was little speculation over who Mr. Nixon will pick to be the new head of EPA. Assuming Mr. Fri means what he says, the only other internal EPA candidate appears to be John R. Quarles, Jr., formerly EPA general counsel now serving as deputy ad ministrator under Mr. Fri. Meanwhile, although there are no major policy-setting decisions facing EPA's interim management over the next few weeks, if Mr. Fri remains as acting EPA head for a longer period, he will face some tough and important decisions. For instance, by midsummer EPA will have to act on final state plans for implementing clean air standards and later this year a possible appeal by auto makers for a year's delay in meeting 1976 emission standards.
in Brief: Midwest rains cloud fertilizer outlook
The business reaction to President Nixon's recent energy message can be summarized thus: Definitely beneficial in the long run, but a less than realistic approach to meeting short-term needs. Coal may play an important role in helping the U.S. meet its energy demands. (Facing page)
Rain-drenched skies over the Midwest and South are making the spring fertilizer season this year more murky than ever. The year had appeared promising for the fertilizer industry until quite recently. The Department of Agriculture recently forecast a 4% increase for U.S. output of nitrogen products to 9.3 million tons, a simi- Transfer of William Ruckelshaus lar hike for phosphates to 6.4 mil- from the Environmental Proteclion tons, and an 11% rise for potash tion Agency to the FBI probably materials to 2.7 million tons. The outlook for exports has been par- will have little short-term effect on EPA's programs. Robert Fri ticularly strong. But a lot is riding on the next few is taking over the reins at EPA, weeks. "The nation's water-soaked but only temporarily, for he Midwest and South Central states plans to return to management have the fertilizer industry, and agriculture in general, tied in consulting. Meanwhile, some knots," complains Fertilizer Insti- critical EPA actions are coming tute president Edwin M. Wheeler. up later this year. (Facing page) The midwestern grain belt, he notes, uses nearly half the nation's fertilizer, and movement of fertilizer Floods in the Midwest and South to the farms, although ahead of last Central states are causing an unyear in several areas, is far behind in certain outlook for fertilizers this the Midwest. "Pressures on delivery year. Although this compounds and application facilities will set alltime highs once the sun shines," he other problems of transportation adds—if that hoped-for event is not and fuel shortages, fertilizer too late. producers are hopeful that this Wet weather has only com- fertilizer season will be at least pounded other problems. The short- as good as that of 1971-72. age of rail cars—a chronic spring- (This page) time complaint of fertilizer producers—is worse than ever this year as a result of demands from grain C&EN's list of Top 50 chemicals and other types of freight. Floods in shows 1972 was a big year for the the Mississippi Valley have hin- industry. Total chemical volume dered both barge and rail shipments. (The 11 million acres of land represented on the list climbed actually flooded, although great, is 8% to 398 billion pounds. Output not a large enough part of total U.S. of 41 of the 50 grew faster in farm acreage to be a significant fac- 1972 than in 1971. (Page 8) tor in fertilizer demand.) There is some worry, too, that a shortage of Herschel Cudd, president of fuel for tractors and other equipment may hinder farmers' ability to Amoco Chemicals Corp., is 1973 winner of the Chemical Marketing plant seed and spread fertilizer. Yet producers still seem generally Research Association's Memohopeful that this fertilizer season rial Award. He believes that will wind up at least as good as that management decisions made in of 1971-72, when wet weather also the absence of marketing redelayed spring planting. They figure that farmers are anxious and able to search are likely to be ill-admove very fast once their fields dry vised. (Page 11) out. The economic incentives to risk late planting of corn and cotton are Federal priorities and science strong indeed this year. But time is running out fast. If the rains don't policy are changing to reflect stop soon, earlier forecasts for an 8% economic concerns, resulting in boost in fertilizer use will look in- a shift in the pattern of federal creasingly shaky. R&D funding. (Page 12)
The federal effort in the energy field has become large and expensive despite the absence of a formal national energy policy and without centralized direction and coordination. Federal funding for energy-related R&D totaled $931 million in fiscal 1972 and about $1.1 billion in fiscal 1973. (Page 13) A Battelle study suggests that management can encourage technological innovation by providing the proper atmosphere, funds, and planned interdisciplinary R&D teams. (Page 14) The supply of water in the U.S. will be sufficient in the years ahead, if a coordinated national water use plan is developed and if people are willing to pay the social and economic costs that will be. required to manage water supplies for meeting needs and for satisfying environmental requirements. (Page 16) Magnetic methods developed by scientists at MIT are being used to solve major industrial and environmental problems, such as beneficiation of minerals, desulfurization and de-ashing of coal, and purification of natural waters and industrial effluents. (Page 17)
Chemical & Engineering News May 7, 1973 Volume 51, Number 19 3 4
Editorial The Chemical World This Week Concentrates
7 15
Industry/Government/International Science/Education/Technology
8 12 16 19 32 32
The Departments Industry/Business Government Technology ACS News/People Newscripts Letters Cover design: Norman Favin
May 7, 1973 C&EN
5
