Fuel-shift choices should be guided by economics

Industry's fuel choices center on how and when to shift from oil and natural gas to other fuels in a way that is economical and technically compatible with each company's needs. Market signals have already indicated the benefits of fuel switching to some companies with stationary fuel applications, which involve the major fuel consumption and the least cost to the economy. Medium-term fuel switching will be appropriate for the transportation sector because it has a better potential for short-term conservation efforts. The use of oil and gas for raw materials, accounting for only 8% of the demand and requiring substantial research and technological breakthroughs to change, can be retained for some time. The fuel-switching plans of Union Carbide Corp. are reviewed in light of this schedule. Boilers and furnaces will be converted to dual-fuel systems to use gas and oil for power and steam generation. Fuel-switching to coal along with co-generating capability will be accomplished in Gulf Coast plants. Union Carbide will preserve environmental quality standards by requiring a 99% or better reliability of stack gas scrubbing technology. (DCK)