OIL: Off the East Coast - C&EN Global Enterprise (ACS Publications)

Sep 20, 1971 - At a conference on offshore drilling last week on Long Island, N.Y., oil industry executives showed open interest in potential crude de...
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To stimulate U.S. exports: more

the chemical industry, its professionals, and labor force. Not surprisingly, the commission attaches "high priority" to getting Congressional approval to end the American Selling Price (ASP) system of valuation of benzenoid chemicals. More vigorous enforcement of the U.S. Antidumping Act is endorsed, and a liberalization of "adjustment assistance" for firms and workers injured by imports is asked, including protecting pension rights and health and welfare benefits of workers who have to change jobs. Steps to stimulate U.S. exports, such as a much higher level of federal support for industrial R&D and tax incentives, are urged. Half of the commission, says chairman Albert Williams, former IBM president, found the Administration's proposed Domestic International Sales Corporation would boost exports, but would be too costly. The international implications of environmental control are covered in the report. Citing the danger of "pollution havens" set up to attract foreign investment, the commission calls for harmonizing environmental quality standards and negotiating uniform international product pollution standards. The U.S. should avoid, and oppose internationally, export rebates and import surcharges to offset pollution control costs. Such costs should be reflected in prices. Warning of the "alarming" trend leading toward 70% of the U.S. labor force producing services instead of goods by 1980, Monsanto board chairman Charles H. Sommer, the only CPI member of the commission, writes that this trend weakens national security and will diminish prospects for further economic growth. We must be willing to give up some benefits of freer trade and investment, he adds, to maintain a strong U.S. economy and society.

xieral R&D support, tax Incentives OIL:

Off the East Coast

toward exploration and approval from government consultants. In a special study this month, ocean scientists R. W. Stewart and L. M. Dickie told the Science Council of Canada: "As yet there is no production from the Canadian shelf. Nevertheless, the prospects are excellent." Oil resources on the Canadian shelf may exceed those of its land areas, they said. The immediate concern for U.S. companies eying the U.S. shelf is to accommodate the vocal concern of ecologists and politicians. On Long Island James R. Jackson, Jr., manager of exploration environmental affairs at Humble Oil, sought to allay fears of unsightliness and leaks from offshore rigs. For his pains, he and fellow managers were promised an immediate court test seeking permanent injunction against any drilling at all.

After a century of producing oil far from its major markets, the U.S. petroleum industry is beginning to smell big potential crude deposits hardly a stone's throw from the energy-hungry Northeast. If preliminary hints from a summer's work on the U.S. and Canadian conti- FUEL ADDITIVES: nental shelf turn into firm indications, a new reserve bigger than the Confidential vs. public Consumer-oriented groups appear Alaskan find could result. Such an oil pool so close to the to be winning some minor battles giant Northeast process industry in their efforts to wrest confidenand consumer population would in- tial pollution information from the tensify considerations already be- Federal Government. Two weeks gun for a northward shift in chem- ago, the Environmental Protection ical processing (C&EN, Nov. 10, Agency said it would make public 1969, page 19). However, as moves information obtained in a voluntary last week show, oil on the eastern national survey of industrial waste shelf would embroil all concerned water discharges (C&EN, Sept. 13, page 43). Now it appears that EPA in an ecological Donnybrook. At a conference on offshore drill- may also release some of the coning last week on Long Island, N.Y., fidential information obtained unoil industry executives showed open der the fuel additive registration interest in potential crude deposits program. The fuel additive registration probeginning probably 30 miles offshore. One ocean survey run this gram was provided for in the Clean past summer for a group of oil com- Air Act of 1967, which empowered panies explored potential deposits EPA to collect from gasoline producers lists of the additives in each off the East Coast. On the Canadian part of the con- gasoline sold in the U.S. Similar intinental shelf, development is well formation was subsequently obbeyond the survey stage. Last week tained from the additive makers, a Canadian subsidiary of Standard also. About 50% of the gasoline Oil Co. (Ind.) refused to confirm producers and 70% of the additive that it had discovered oil or natural producers labeled their lists configas 195 miles off Newfoundland. dential, thus preventing EPA from However, as William W. Greentree making the information public unof Shell Canada, Ltd., said at the der terms of the 1966 Freedom of Long Island conference, the Cana- Information Act. EPA was able to dian government has issued explo- publish a list of only the names of ration permits on more than 280 additives. But consumer groups, led by million acres off the East Coast to about 50 companies. This area rep- Ralph Nader's Center for Science in resents virtually all the Canadian the Public Interest, have been shelf. This summer, Mobil Oil said pressing EPA to make all the inforit had found natural gas off Nova mation public. The trade secrets are widely known throughout the Scotia. Key reasons for greater activity gasoline industry, CSPI contends, in Canada are the government's nod and are thus secrets only from the SEPT. 20, 1971 C&EN 9