Synthetic fuels can be economic now

Journal Article · Mon Aug 13 04:00:00 EDT 1979 · Fortune; (United States)

OSTI ID:6263250

Brown, W M; Kahn, H

Some proposals for the development of the synthetic fuels industry assume that government subsidies for as much as $100 billion over the next decade are necessary. The proposals are said to be justified by the need to liberate the US from the prices being imposed by OPEC. The authors agree about the need, but disagree about the cost assumptions. They believe that synfuels can be brought in at prices that are competitive with OPEC's - that they are significantly lower than those set by the oil producers at their June meeting in Geneva. The authors set out to prove their belief that synfuels can be marketed at around $15 per B.O.E. (barrel of oil equivalent). But help will be needed from the government and a new way of thinking about synfuel financing. They use hypothetical examples to discuss the financing, but in reality, they say, many different kinds of fuels will be needed - low- , medium- , and high-Btu gases; heavy and light boiler fuels; distillate, naphtha; gasoline; and alcohol; as well as petrochemicals. The authors believe that a reasonably mature synfuel industry can be established in 10 to 12 years. (MCW)

• Research Organization: Hudson Inst., Croton-on-Hudson, NY
• OSTI ID: 6263250
• Journal Information: Fortune; (United States), Journal Name: Fortune; (United States) Vol. 100:3; ISSN FORTA
• Country of Publication: United States
• Language: English

Related Subjects

09 BIOMASS FUELS
090000 -- Biomass Fuels
29 ENERGY PLANNING, POLICY, AND ECONOMY
295000* -- Energy Planning & Policy-- Hydrogen & Synthetic Fuels
ASIA
COMPETITION
CONVERSION
DECISION MAKING
ECONOMIC ANALYSIS
ECONOMICS
ENERGY CONVERSION
ENERGY SOURCES
ENVIRONMENTAL EFFECTS
FEDERAL ASSISTANCE PROGRAMS
FINANCING
FOSSIL FUELS
FUELS
GOVERNMENT POLICIES
INFLATION
INTERNATIONAL ORGANIZATIONS
INVESTMENT
JAPAN
OIL-EXPORTING COUNTRIES
OPEC
PETROLEUM
REGULATIONS
RISK ASSESSMENT
SAFETY
SYNTHETIC FUELS