The Chemical world This week
TOP EXECUTIVES MULL INDUSTRY PROBLEMS The future success of the U.S. way of life depends on solutions to problems in the fields of productivity, management techniques, energy, and the environment, according to three top industry men who set the tone for the meeting of the American Institute of Chemical Engineers in New Orleans last week. Each of the three, Charles B. McCoy, chairman of Du Pont; John G. McLean, chairman of Continental Oil; and Herbert D. Doan, former chairman of Dow Chemical, stressed that problems in these areas are interdependent. And they are all also very dependent on government attitudes. (Mr. Doan's speech was read by Dr. Earle B. Barnes, president of Dow Chemical U.S.A., as Mr. Doan was ill and unable to attend the meeting.) Both Mr. McCoy and Mr. Doan cite management's responsibility to provide a work climate with incentives for higher productivity to meet foreign competition. This means providing real rewards for people who challenge old ways and come up with innovations, Mr. McCoy says. It means also making sure that policy is effective and doesn't get warped out of shape by a bureaucracy that resents and fears change. Some assumptions about the importance of diplomas will have to be dumped, Mr. McCoy goes on. Technicians can do many jobs that managers thought only graduate engineers could handle. Not only must pay scales and working conditions be examined, but the whole climate in which people do their jobs. Also, if management has to err, it would be better off overestimating people than underestimating them. The more authority and volition given a person, the greater the chance he will increase his productivity. The natural result of real job satisfaction is increased productivity, Mr. Doan believes. This differs from trying to get more work from the same people. McCoy
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Businessmen can reap the rewards—the profits from risk taking—of solving social problems such as job satisfaction and environmental problems by working inside their companies, not with some undefined public, Mr. Doan adds. Internal homework, identifying and doing the whole job will have a major impact on the public's feeling about industry. A better balance among environmental concerns, energy needs, and technology is needed, according to the three speakers. In view of the many problems society wants solved and the likelihood of a shortage rather than a surplus of engineering manpower, this is a poor time for the nation to invest talent in environmental projects that offer only marginal gains to society, Mr. McCoy says. Similarly, Mr. McLean calls for the nation to strike pragmatic compromises that are urgently needed to ensure adequate energy supplies and a satisfactory environment. More specifically, Mr. McLean urges the Federal Government to adopt the California Auto Emissions Standards in place of those in the 1970 Clean Air Act, and to expand the deadlines for implementing power plant stack emission standards set by the Environmental Protection Agency. The difference between the California and federal auto emission standards is small, but the cost to achieve the difference could be large. The present standards will cost about $25 billion over a 10-year period for automotive hardware, increased fuel consumption, and extra maintenance. Another $34 billion will be needed, also on a 10year basis, to meet the California standards. To meet the federal standards, additional costs of $66 billion will be needed. The progressively tighter sulfur dioxide and particulate emission standards will mean that power plants, using existing commercial an
McLean
technology, will need coal with a sulfur content below 0.7% by 1978, Mr. McLean points out. Less than 11% of the coal reserves east of the Mississippi River have sulfur contents in this range and most of the reserves are committed to steelmaking. If 75% of the 250 million tons of coal burned by utilities east of the Mississippi were replaced by 2.3 million barrels of imported crude or fuel oil a day, the balance of payments would suffer an added deficiency of more than $3 billion a year, a consequence that the U.S. cannot afford.
Pace of shale oil activity picks up Against the backdrop of the energy problem, shale oil actions take on a high profile. In the most recent action, Atlantic Richfield has appointed Hollis M. Dole to direct the development of commercial extraction of oil from shale. Mr. Dole was formerly assistant secretary for mineral resources in the Department of the Interior. In his new position, Mr. Dole will head the Colony Development Program, a joint venture of Atlantic Richfield and Oil Shale Corp. Two other partners, Standard Oil (Ohio) and Cleveland Cliffs Iron Co., withdrew from the program in 1971 but retain the option to participate in any future commercialization. The appointment of Mr. Dole has set off widespread speculation that the Colony program is ready to go commercial. However, Curt Burton, public information officer for shale operations at ARCO, says that no decision has been made on commercializing the retorting technique that has been under development for several years. At present, ARCO is busily engaged in preparing an environmental impact study and in completing analysis of the engineering data obtained from pilot study. The pilot program ended last year when ARCO shut down its 1000 tonper-day experimental retort. Mr. Burton says that ARCO is satisfied that technical feasibility has been demonstrated, but final economic evaluations have yet to be completed. Although a decision to commercialize the process has not been
in Brief: made, most observers believe that Action is needed on producit is only a matter of time, a few tivity, management methods, months at most, before construction energy, and environment, three planning could begin. ARCO has its own, private holdings from which it top industry men told an Americould mine the shale. If a decision to can Institute of Chemical Engicommercialize is made, mining will neers meeting last week. be by the room-and-pillar method. Problems in these areas, they No strip mining is in prospect. stressed, are interdependent— Assuming commercial operations and also dependent on governeventually come to pass, the first plant will probably be a scaled-up ment attitudes. (Facing page) version of the pilot and will produce 50,000 barrels per day of oil. Design, Speculation that oil from shale construction, and initial operation is ready to go commercial has of such a plant will require several years and no commercial quantities been touched off by the recent appointment of Hollis M. Dole to of oil will be available before 1980. At present ARCO has no indica- head the Colony Development tion that either Sohio or Cleveland Program. Mr. Dole was formerly Cliffs will opt back into the pro- assistant secretary for mineral gram. Both companies are now involved in a separate venture aimed resources in the Interior Deat adapting an existing limestone partment. (Facing page) retorting process for use with oil shale (C&EN, March 5, page 12). The Middle East will see a major Pilot work is scheduled with shale buildup in petrochemicals during obtained from government leases the late 1970's and into the near Anvil Point, Colo. Reid Stone, coordinator of shale 1980's. The U.S. gas industry oil projects at the Department of will lead the way with largeInterior, says that Interior is in the scale methanol plants, followed process of issuing a very large report by ethylene and propylene pro(up to 3000 pages) on the status of various shale oil projects. About 25 duction. (Page 13) companies are now involved in one way or another in shale oil develop- 1972 earnings turned out just ment. Most are limited to R&D about as expected. With results evaluations. Very few have any in from W. R. Grace, the last private holdings or are leasing minmajor chemical producer to puberal rights from the Government. According to the U.S. Geological lish its 1972 statement, earnings Survey, oil shale is widely dis- for the basic chemical industry tributed in the U.S. However, com- were up 23% from 1971 on an mercially attractive deposits are 11% sales gain. (Page 14) few. The most attractive at the moment are those in the WyomingAs head of Dow's venture capiColorado-Utah region. Shale areas that yield a few gal- tal arm, Herbert E. Engelmeyer lons to 65 gallons of oil per ton of finds it exciting "to make money shale are distributed throughout while doing a bit of good at the much of the Green River deposit in same time." He oversees Dow's Wyoming, which ranges in thickness to 7000 feet. In general, the $8 million stake in fledgling central parts of Colorado's Piceance businesses dealing with high Basin contain rich oil-shale com- technology. (Page 16) ponents that grade to poorer quality near the basin margins. Monsanto's Monte C. Throdahl Parts of the deposits in the Piceance Basin, where ARCO has its wins the 1973 CD A award. Inholdings, that are known to yield 25 volved in commercial developto 65 gallons of oil per ton of shale ment in one form or another contain about 450 to 500 billion during most of his 32-year career barrels of oil. Another 90 billion at Monsanto, Mr. Throdahl will barrels are known to be in the Uinta Basin of Utah and another 30 billion receive the award "for distinbarrels are known to be in the Green guished contributions to industry River Basin. and CD A." (Page 18)
The outlook for industry R&D spending and jobs is good, according to a recent NSF study. Industry-funded R&D will grow by 22% from 1972 to 1975 to a record $14 billion annually, and employment will move up from 240,000 last year to 260,000 in 1975. (Page 23) Fermentation processing draws closer to its huge potential in bulk production. Closer control of the complex biological processes promises large cost cuts in producing drugs and food, and in recycling wastes. (Page 32) Scientists are firming up their ideas about the moon—its composition, history, and other properties—from the vast amount of study of lunar rocks and soil samples returned from Apollo missions. Some results of these studies were given at a conference in Houston. (Page 35) ACS will publish a newsletter to carry news of Society activities. To be called the ACS Communicator, the newsletter will go to Board members, councilors, local section and division officers, and committee chairmen. The first issue is planned for this month. (Page 37) Chemical & Engineering News March 19, 1973 Volume 51, Number 12 3 4
Editorial The Chemical World This Week
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Concentrates I ndustry/Government/1 nternational Science/Education/Technology
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The Departments Industry/Business C&EN Talks With. . . Government New Products Technology Science ACS News/People Newscripts Letters Cover design: Dawn Leland
March 19, 1973 C&EN
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