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Amoco seeking per-unit energy cut amidst expansion

Eric W. Crawford

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Abstract

Amoco has set an energy conservation goal of 3% annual cut in energy use per pound of product at its Chocolate Bayou plant during a period of major production expansion. Outside consultants will test boiler efficiencies, conduct infrared surveys of insulation, and study internal processes. Incentives for energy saving include the economics of rising energy costs and the inclusion of energy conservation in plant performance reviews. A voluntary program was initiated three years ago, but increased administrative pressure was applied in the last year with the expansion of the energy conservation committee to include the active participation of the plant manager. Both direct fuel and energy loss consumption are included in the effort. No budget is set for conservation investment, but estimates are set at $5 to $10 million through 1979. Some of the investment will be in the form of salary increases for those effecting energy savings. Investments to date have included furnace improvements, replacement of leaky linings, a plant-wide steam balance program, and recovery of hydrocarbons from wastes. Energy savings of 3% will have a significant impact with next year's electric bills projected at $6 million and gas bills at $42 million. (DCK)

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Amoco has set an energy conservation goal of 3% annual cut in energy use per pound of product at its Chocolate Bayou plant during a period of major production expansion. Outside consultants will test boiler efficiencies, conduct infrared surveys of insulation, and study internal processes. Incentives for energy saving include the economics of rising energy costs and the inclusion of energy conservation in plant performance reviews. A voluntary program was initiated three years ago, but increased administrative pressure was applied in the last year with the expansion of the energy conservation committee to include the active participation of the plant manager. Both direct fuel and energy loss consumption are included in the effort. No budget is set for conservation investment, but estimates are set at $5 to $10 million through 1979. Some of the investment will be in the form of salary increases for those effecting energy savings. Investments to date have included furnace improvements, replacement of leaky linings, a plant-wide steam balance program, and recovery of hydrocarbons from wastes. Energy savings of 3% will have a significant impact with next year's electric bills projected at $6 million and gas bills at $42 million. (DCK)

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Available abstract

Amoco has set an energy conservation goal of 3% annual cut in energy use per pound of product at its Chocolate Bayou plant during a period of major production expansion. Outside consultants will test boiler efficiencies, conduct infrared surveys of insulation, and study internal processes. Incentives for energy saving include the economics of rising energy costs and the inclusion of energy conservation in plant performance reviews. A voluntary program was initiated three years ago, but increased administrative pressure was applied in the last year with the expansion of the energy conservation committee to include the active participation of the plant manager. Both direct fuel and energy loss consumption are included in the effort. No budget is set for conservation investment, but estimates are set at $5 to $10 million through 1979. Some of the investment will be in the form of salary increases for those effecting energy savings. Investments to date have included furnace improvements, replacement of leaky linings, a plant-wide steam balance program, and recovery of hydrocarbons from wastes. Energy savings of 3% will have a significant impact with next year's electric bills projected at $6 million and gas bills at $42 million. (DCK)

Key concepts: Energy conservation, Incentive, Energy consumption, Energy intensity, Agricultural economics, Investment (military), Natural resource economics, Economics

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