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By Samuel Hoyt

THE writer has long been interested in seeking an explanation of the upper heat effect in the copper-tin alloys over the a + ß range, first described in 1913. These notes are offered, not at all as the final explanation of this heat effect, but rather to indicate certain progress which has been made toward establishing what happens over this temperature interval. While working on the thermal analysis of the copper-rich kalchoids (copper-tin-zinc alloys), it was noted that those alloys containing major portions of tin and minor portions of zinc exhibited two marked heat effects, one at about 520° C. and the other at about 600° C., instead of the single effect which is generally observed in either of the two binary series. This matter was discussed with Dr. Guertler, who suggested that a heat effect at about 600° C. in the pure copper-tin alloys might be expected. This led to a more searching examination of the thermal critical points in the pure copper-tin alloys, with the result that a marked, although somewhat weak, heat effect was located at about 600°. Somewhat later, this upper heat effect was discussed with Dr. Burgess, and it was requested that the Bureau of Standards make heating and cooling curves of one of these alloys for the purpose of removing any possible doubt as to the actual presence of the heat effect. Results obtained by the Bureau are given in Plate I. In an earlier paper1 differential curves were published showing that the heat effect occurred at constant temperature over the a + ß range and increased in magnitude with the amount of a up to a point somewhat above 20 per cent. tin. No heat effect was noticed at this temperature in the eutectoid alloy. The existence of this heat effect seems to require a modification of the present copper-tin diagram in the a + ß field, and it has been the object of the work here presented to secure the evidence upon which such a change should be based.

Jan 12, 1918

THE annual winter meeting of the A.I.M.E., which is to open in New York on Feb. 14, will be charac-terized by a number of novel features. The most important is that the technical sessions will be dis-tributed over four days instead of three as heretofore. This makes it possible to reduce the number of conflicts between sessions and also will enable each member to attend a larger number. At the same time the ses-sions are so arranged by groups that those interested only in one or more that are related can, if necessary, cover all in that group in three days as heretofore. The general excursion to which the fourth day has, for some years, been devoted has been regretfully given up, mainly because of the uncertainties of the weather in New York in February. In its place a series of group excursions are being offered at various times during the meeting, arranged, so far as possible, so as not to con-flict with any technical session likely to be of interest to those taking part in a particular excursion. Among the places to be shown the visitors are: the construction work on the Eighth Avenue subway, a real mining job; the Vehicular Tunnel, the world's greatest ventilating project; the manufacture of 42-in. conveying belts; one of the largest and most modern steam plants; a coal terminal; manufacture of mining equipment; a cable-making plant; an oil terminal and refinery. Other en-tertainment features include a smoker Monday evening with a real chance to get together and talk; an informal dance and entertainment given by the Woman's Auxiliary on Tuesday evening; the dinner-dance at the Waldorf Wednesday evening, with no long speeches; a general session Thursday evening when the Petroleum Division will present a series of important reviews of the year. An extensive program has been arranged for enter-taining the ladies, and members are urged to bring their wives. There will be dinners, teas, theater parties, shopping and sight-seeing excursions as well as the dances. The usual general luncheons for members, guests and ladies will be served each day at headquar-ters, and various committees and groups will hold lunch-eons, dinners, and round table conferences as indicated in the schedule on the page opposite. The Mining and Metallurgical Society of America and the American Society of Steel Treaters are participat-ing in this meeting and their members will be welcome as guests at any session or function. A joint conference of the Mining and Metallurgical Society and the A.I.M.E. has been arranged for Tuesday afternoon, under the chairmanship of Clinton H. Crane, at which the whole matter of the mineral reserves of this country is to be up for discussion.

Jan 2, 1927

By Manuel Gutkrrez, Nasslo Gallardo, Arturo Cancec

The study done in Dofia In&s de Collahuasi aims to improve the fragmentation in one of the most difficult rocks to deal with in an operation, It is the Ignimbrita. In order to avoid ejections and to increase the efficiency of the explosive it has been obtained an improvement in the stemming quality by using the Blasting Optimisation Program in Ignimbrita. Different materials were used in the stemming. In 1997 it was used soil material (Paleorrelleno), then in 1999 started the use of crushed gravel and during this year it is being implemented the utilisation of Stemtite only loaded with drill cutting. The first improvement was obtained with the utilisation of gravel, yielding good fragmentation results in comparison with the stemming with detritus material. The stemtite has made easier the blasting operation and it has signiticantly improved the fragmentation.

Jan 1, 2001

The 128th meeting of the American Institute of Mining and Metallurgical Engineers constituted a two weeks trip through the Great Northland of Ontario and Quebec and was a most memorable occasion. The last visit of the Institute to Canada was made in 1907 when the mines, which now have brought world wide fame to some of the camps, were not yet dis-covered. The party reached its greatest numbers at Porcupine where 167 visitors and nearly one hundred local members participated. Five members of the party from the States were on the previous trip in 1907. They were Mr. and Mrs. L. D. Huntoon, John Stevenson and son and E. F. Eurich. The Minister of Mines for the Province of Ontario attached his private car to the "Mining Engineers' Special" and made the complete trip through Ontario. This was a happy incident in many ways and gave the visitors an opportunity to discover a spirit of mutual accord between the Minister and mining industry that might well be emulated elsewhere. Two compartment cars and one standard Pullman with the Institute members from New York and the metropolitan district were attached special to the 6.15 p.m. Lehigh Valley train from New York, Sunday, Aug. 19, en route to Toronto, where was held the first session of the Institute's 128th Meeting.

Jan 9, 1923

THE book covers principally the assaying of silver and gold and the determination of these values in ores, sweepings, and base metal. It seems to have been written more for the goldsmith and jeweler than for the primary producer of metals. There were approximately sixty different substances needed in the operations described and not over a dozen different types of raw material (ore, matte, crude or alloyed metal) are mentioned. The methods of separation used were essentially simple and reasonably reliable, though the processes were not sufficiently understood to permit the selection of the simplest effective ingredients, and there was a great tendency to employ complicated fluxes, with unnecessary repetition of long-continued heatings indicative of a leisurely pace of life. Practically all the processes described are based on a few chemical facts: the inability of gold to combine with sulphur, while silver and the base metals form easily fusible sulphides; the ready oxidation of base metals; and the ii- solubility of gold in nitric acid. Fluxes serve to make earthy impurities fusible, and to carry oxidizing or sulphurizing ingredients. Many of the processes of assaying had changed little up to the beginning of the present century. Even as late as 1924, when the writer took a University course in fire assaying, the crucibles, cupels, scorifiers, molds, and tongs were identical with those of the sixteenth century, though the wind furnace had a stack on it and the muffle for cupelling was gas-fired.* The fluxes were purer, but of the same essential composition. That this branch- or twig-of metallurgy had not advanced in any funda-

Jan 1, 1949

By A. T. Shurick

THE present economic crisis in bituminous coal is substantially the most insidious, and critical, in the modern history of the industry. The large consumption deficit that has gradually developed (almost unawares), has culminated in a situation that has forced home the urgent necessity for prompt and radical remedial measures, such as the various mergers now in course of negotiation. Conditions today are sufficiently comparable with those in the iron and steel industry, preceding the formation of the United States Steel Corpn., to suggest the possibility of a sweeping super-consolidation, that all but staggers the imagination. The important function of the banker in this, and lesser projects, is too well known to require comment, and it is important that we understand clearly just what these functions are. Certain features in banking practice came up for consideration in connection with a rather exhaustive economic study into the prospective future of the coal industry, upon which I was recently engaged for an Eastern bituminous interest. This survey was made for the purpose of effecting a decision on certain pressing questions of policy, involving considerable capital expenditures, that would be compatible with the flattening out in the curve of production in recent years. An examination of the TRANSACTIONS, and the coal literature generally, failed to disclose any pertinent, and authoritative data, on this subject. This was more or less characteristic of the whole survey, which had involved a large amount of original research, and measures were taken to procure the required information. The following notes have been compiled largely from the data thus collected, supplemented with material, suggestions and criticisms, by several of the larger banking houses active in coal, together with personal memoranda of my own.

Jan 1, 1928

THE 135th meeting of the Institute was the largest and most enthusiastic that has ever been held, sur-passing passing in numbers attending even the notable meeting of 1920. The total registration was 1493. The technical sessions and round tables, 38 in number, were spread through four instead of three days as heretofore in order to reduce the number of conflicts, and most of the A. S. T. M. Committee meetings were held over until Friday. Even so it was necessary to schedule as many as seven simultaneous technical sessions, and there were usually at least two going at once that each wished to attend. Three special luncheons and five group dinners were held, each of which strung out into an informal meeting, and yet approximately 500 came to-gether each day at the general luncheon and over 700 attended the banquet on Wednesday night. The smok-er attracted 402, and the various social affairs under the charge of the general or the women's committees were all crowded. From 10.00 a.m. Monday to 11.00 p.m. Thursday there was one long series of meetings after which the members went home to catch up on their sleep. The comment on the meeting of a member of one of the other societies, who had occasion to be much in the building, was the markedly friendly spirit of the gathering, the large numbers who were evidently old friends and acquaintances. This does seem to set the miners off somewhat from other engineering groups. So many have shared the same blankets and beans at one time or another that the annual meeting has truly come to be a family reunion.

Jan 3, 1927

By D. V. BURR

THE ORIGINAL HUDSON RIVER TUNNEL. NOT quite forty years ago a man of uncommon character entered New York. He had several hundred thousand dollars earned by railroad building in the Nest. He was not an engineer, but he had ideas of engineering work which he was destined to prove correct.. He introduced new ways of tunneling, but his plans had only one distinguishing feature-they were simply interesting as showing how such work could be done; they added nothing to the science, have never been used since his clay, and never will be used again. Engineers of repute ridiculed his proposition ; he was an Ishmael in the profession. But if engineers looked askance at him, he certainly returned their contempt in the heartiest fashion, and had no hesitancy about expressing his views of them individually and collectively. This worked to. his disadvantage when he afterward tried to raise the means to go on with the work. He found that the opinion of engineers was respected by financiers, and that money would not flow contrary to their advice. While his conception of large constructions was distinguishingly original, much more marked was his method of demonstrating the feasibility of, his schemes. In the present clays of great undertakings it is the custom to make the other man pay for the experiments. But the man from the West had other notions of how the thing ought to be done. Having wonderful confidence in his own ability and in his perception of the task before him, he used up all his own money before seeking outside assistance. By building several hundred,, feet of tunnel he proved the correctness of his theory, and the tunnel then dug forms a part of the present tube. The result-he failed to finish the tunnel. He was blind in

Mar 1, 1908

THE 127th meeting of the Institute was held in New York, Feb. 19 to 22, 1923. In addition to the usual large volume of technical matters under consideration, the meeting was particularly noteworthy for the amount of attention given to its business session; the convention of local section representatives also was full of interest. The total registration was 1201. The annual business meeting on Feb. 20, President Dwight presiding, was attended by 125 members, who listened with marked attention to the reports and addresses of the several officers. The chairman departed from the stipulated order of business in order to allow more time for the presentation of remarks on the state of Institute affairs. The previously pub-lished reports of the officers were accepted, as printed. On the report of the tellers, the following officers were declared elected: E. P. Mathewson, Director and President-District 0 T. T. Brewster, Director and Vice-president-District 6 Frank M. Smith, Director and Vice-president-District 11 W. H. Aldridge, Director-District 0 G. H. Clevenger, Director-District 1 A. N. Diehl, Director-District 3 Reno H. Sales, Director-District 7 Seeley W. Mudd, Director-District 10

Jan 3, 1923

By Michael P. Amsden

"THE ECSTALL CONCENTRATOR is situated adjacent to Highway 101 and the Ontario Northland Railroad, 15 miles east of Timmins, Ontario. Ore is delivered to the concentrator by rail from the mine, which is 17 miles northwest of the plant. Power and fuel are obtained from the hydro and natural gas lines which pass close to the plant site. Water is obtained from the Frederickhouse River, 6 miles east of the concentrator. The main concentrator building is a large structure 500 by 640 feet by 90 feet high and contains facilities for fine crushing, crushed ore storage, grinding, flotation, tin recovery, concentrate handling and reagent handling. Located in the same building are the machine shop, warehouse, metallurgical laboratory, pilot plant, men's change room, sample preparation area and an assay laboratory. The general concentrator layout is shown in Figure 47. Originally designed to handle 9,000 tons per day, the concentrator now treats 10,000 tons per day. Two different ore types are processed by selective flotation in three individual circuits to recover copper, lead and zinc concentrates. In 1973, another circuit was added to recover pyrite and tin concentrates from the combined zinc tailings of the three main circuits."

Jan 1, 1974

By Graham E. Brown

Since the beginning of time, people later to be known as engineers and architects have strained to create methods whereby they could improve technology to assist them in their various fields of endeavour. Some of these improvements would be the change from linen paper, french chalk and ink pens to drafting film , mylar an d pencil for the production of drawings, the drafting machine in lieu of the tee and set squares, even tap e to attach drafting media to the board instead of thumb tacks and man y, man y more. All of these taken individually are insignificant but combined evolve to the current state-of-the-art in the computerized engineering environment. Ten years ago the major topic o f conversation was the hand-held calculator which for a cost of around $150 would give most trigonometric functions. Today the equivalent calculator can be purchased for around $25, is about one third the size, and if inflation were included over the last ten year s the item should cost around $550 in today' s dollars, it can be seen that tremendous advances not only in the technology but also the cost saving. The following paper is intended to outline some o f the significant aspects o f the latest technology in the computerized engineering office namely Interactive Graphics Systems.

Jan 1, 1985

By O'Halloran. Gerard F.

"ECSTALL MINING has installed in their plants the most modern equipment in the mining industry. At the minesite, digital blocked frequency controls are used to monitor all crushers, conveyors, ventilation equipment and pumps from underground. Distant pumping stations are monitored and controlled by radio. Modern friction skip and cage hoisting systems have been installed with static power supply designed for automatic operation. Rotary-type compressors of recent design are in service in place of the conventional reciprocating-type units. At the concentrator, the 800- and 1500-hp synchronous motors driving the grinding mills have static field excitation and pneumatic clutches, still meeting modern-day concepts, having been• installed in 1966. The maintenance work load has increased annually for the past eight years. The modern plant, with all the present-day sophistication, must have a welltrained and well-organized force of skilled workers, and a maintenance system which will supply realistic facts and guidelines. This presentation will review the relative location of plants, utilities, maintenance and services, plant maintenance control and mechanical control. It is the hope that enough information will be presented to weigh the size of the job and how the resources are utilized for controlled maintenance."

Jan 1, 1974

By AIME AIME

ANOTHER meeting of the Institute has passed into history and it fully sustained the reputation of the Institute as a live organization of the men, and nowadays the women, concerned with the mineral . ? industries and those working therein. The field meetings of, the 1nstitute are cine of its pleasantest and most valuable features. As Dr. Raymond used to say, ((It is good for a mining engineer once in a while to see a mine" and these meetings bring back to the mines those who, through progress into higher executive positions, have come to visit them infrequently, at the same time that they give opportunity for the .younger men to see regions and mines aside from those in which they are then working. This, and the formal and' informal interchange of information resulting,, is of the greatest professional value to all, while the meeting of old and making of new friends causes each meeting to be notable in turn. This year's meeting at Salt Lake City was one of the largest that has been held outside of. New York City; 470 members and guests registered while many more were present at the sessions without attending to this formality. '

Jan 1, 1925

By AIME AIME

TRADITIONALLY, the Annual New York Meetings of the A.I.M.E. cover four days, but the program is growing on each end as well as in the middle, and this year it lasted from 3 p. m., Sunday, Feb. 16, when the Education Division got under way, to 8:40 p. m., Friday the 21st, when a trainload of electrical inspectors, pro tern, got back fro111 the General Electric plant at Schenectady. The meeting has ceased to be a mere three- ring circus: on Wednesday afternoon eight sessions were being held simultaneously in the Engineering Societies Building, if one includes the Woman's Auxiliary, and according to frequent testimony one should include the W. A. as one of the most important units in Institute affairs.

Jan 1, 1936

By AIME AIME

WTHIN the next month all members of the Institute will be given an opportunity to vote for a new President, two Vice-Presidents, and five Directors. All of the candidates nominated by the official committee are well known to certain groups of the Institute membership but a brief record of their professional lives will be given here for the information of those that will vote. Not since 1927, when Everette DeGolyer guided the destinies of the Institute, has a member of the Petroleum Division been a candidate for President. John Meston Lovejoy has been a Director since 1930, and a Vice-President as well for the last year: In the three years 1932-4 lie was also chairman of the Admissions Committee. Dir. Lovejoy graduated from the Columbia School of Mines in 1911, just before lie was 22 years old, and began his professional career as a copper miner at Chuquicamata. Chile. Silver and gold mining later claimed his % attention, and it was not until 1914 that lie gut into the oil business, as geologist for the Standard Oil Co. of N. Y. This took hint to China and he later worked for the company in Wyoming. In 1917 lie joined the Army where lie rose to be captain of Field Artillery. Upon his return to the United States he went to work for the Amerada Petroleum Co., of which he later became vice-president and general manager, with headquarters in Tulsa. Since coining to New York he has been president of the Petroleum Bond & Share Cu.. and is currently president of the Seaboard Oil Co.

Jan 1, 1935

By Kenneth C. G. Heath

The paper point out the economics importance of the Torco process as lubricant and fuels of the motor in the mining. It is possible to envisage an arrangement in which TORCO would be used to treat a sulphide ore, the acid used to dissolve the metallic ccoper in the concentrate and the copper produced in cathode form by electrowinning. However, there are studies point out that it would be as profitable as conventional flotation, smelting and refining. To carry out full testing of the TORCO process on anyore would be expensive, involving sending several hundred tons to one of the pilot plants located in Johann esburg or Milan. Such pilot plant testing should & be considered as confirmatory rather than exploratory, and a good economic case for using theTORCO process would have to be made out based of mallet scale testing before in curring the larger expense.

Nov 20, 1969

By Dexter Kimball

THE ease and promptness with which the public as a whole becomes accustomed to and takes advantage of the work of the engineer, using the term in a broad sense, is almost startling. Surprise at, and fear of radical innovations in transportation and private service quickly give way to blasé indifference, followed instantly by all manner of criticism that these things are not better constructed and managed. Does the street car stop a few minutes on a switch?-summon the State Commission. Is the Overland Express fifteen minutes late on a three thousand mile run?-Congress is memorialized to make the great railroad companies attend to their business. Does central not respond instantly when we take down the telephone receiver?-anathema!! Do the electric lights go out for a minute or so?-the darkness is illuminated by caustic sarcasm and other kinds of spoken English consigning all engineering and engineers to perdition; everyone apparently forgetting how steep the hills were before the days of street cars, how far away San Francisco was before the days of the locomotive, the telegraph and telephone, and how difficult it must have been to study by the light of a tallow candle.

Jan 9, 1922

By E. H. Griswold, C. E. Beecher

DURING 1931 the petroleum industry has faced the most hazardous periods of its existence, caused by large potentials, overproduction, and demoralized markets. Two state governors actually resorted to the use of the militia in an effort to restore a semi-stabilized condition within the industry, to prevent waste of the states' natural resources, and to restore prices to a level that would yield the states a reasonable tax revenue. These conditions have made it necessary to put into effect most. stringent economies and have produced a spirit of cooperation between companies to an extent that never before existed. The necessity for unified action on such matters as proration and the advantages to be gained by unit operation are being realized by the oil industry as a whole. Fewer wells have been drilled and wildcat operations almost eliminated: development and operation costs have been greatly reduced and more attention is being paid to efficient recovery methods. The net work of oil pipe- lines has grown rapidly especially in the area of East Texas. The construction and operation of natural gas and gasoline pipelines into areas far distant from the source of supply has been one of the outstanding accomplishments. Refining efficiency has continued to increase and the public is being supplied with a better grade of gasoline at a lower price. The unreasonable tax which state politicians have succeeded in placing on gasoline has encouraged tax evasion and unfair competition by un- scrupulous dealers and has misled the public as to the true price of gasoline.

Jan 1, 1932

By Thomas Read

AMONG the large number of deep mines in the world there are several which do not differ much in depth. The St. John del Rey mine, in Brazil, has reached a vertical depth of 6726 ft. below the top of its shaft; miners enter it, however, through an adit which intersects the shaft 324 ft. below its top, wherefore it might be said that the mine is really only 6400 ft. deep. In the Kolar gold field of India there are a number of deep shafts, one of which reaches to a vertical depth of 6140 ft. below surface. In South Africa also there are a number of deep shafts, the Village Deep being 6100 ft. early in 1921. The City Deep, Ltd., proposes to sink to a depth of 7000 ft. but pre-sumably by the time it does so the St. John del Rey will be deeper than that, since it has been increasing in depth at an average rate of about 150 ft. per year. The deepest shaft in the United States, the Tamarack No. 5, although it is only 5308 ft. deep, actually approaches nearer to the center of the earth (4100 ft. below sea level, as against 3958 ft. , at St. John del Rey). The deepest workings in the Calumet & Hecla go down to 4600 ft. below sea level. The St. John del Rey is not only the deepest, mine in the world, but it also is worked by the oldest registered English mining company, which was organ-ized in 1830 to work a mine at a considerable dis-tance from this one. That mine proved unprofitable, and in 1837 operations were transferred to the. deposit now under discussion, where operations have been prac-tically continuous ever since.

Jan 6, 1923

By A. L. Baxley

An Untapped Energy Resource As much as 20 billion cubic feet of natural gas per day are flared from remote oil fields for lack of a commercially viable means of capturing, transporting, and marketing such gas. The magnitude of these gas flares can be put into perspective from an early satellite photograph (Fig. 1) which shows lights from the major cities of Russia and Eastern Europe dwarfed by the natural gas being flared in the Persian Gulf. Together, these wasted resources contain the energy equivalent of about one-half of the gasoline consumption in the United States today (Fig. 2). Additional trillions of cubic feet of natural gas are "shut-in" because of no economically viable means of commercial recovery. Methanol and liquified natural gas (LNG) are the only two practical fuel products which can be produced economically from these gas supplies. Many of these gas supplies are less than 500 million cubic feet of gas per day, making an LNG facility uneconomic. In contrast, barge-mounted methanol plants can economically convert billions of cubic feet of gas per day into safe, clean-burning methanol. The methanol approach offers the only economical route to transform vast, known reserves of natural gas into a highly versatile primary liquid fuel. Methanol Barges: An Innovative Solution The barges will be towed to suitable offshore and upriver locations such as Alaska, South America, Africa, Southeast Asia, Australia, New Zealand, and the South Pacific Islands, as well as fields in the Persian Gulf and Mediterranean Sea. At the offshore production site, a barge will be anchored by a single point mooring buoy that will also serve as an entry point for natural gas feedstock and an offloading point for methanol (Fig. 3). At some sites the barge would be beached. Each barge will produce methanol and store it in internal tanks with a capacity of 18 million gallons. The methanol will be offloaded into conventional tankers and safely transported directly to market. Unlike LNG, methanol requires neither specially built carriers nor specially built receiving terminals. Once a particular gas field has been exhausted, the barge will be towed to another location to continue production. Each barge will measure 320 by 500 ft, approximately the size of four football fields, and will have the capacity to produce 1 million gallons or 2800 metric tons of methanol per day, from approximately 100 million cubic feet of natural gas per day (Fig. 4). The barges will use the highly successful "low- pressure" design developed by the Lurgi Company of Germany, a process proven in land-based methanol plants throughout the world during the last ten years. The decision to use Lurgi technology for "sea-trans- portable" methanol plants was based on the higher efficiency and greater operability of the technology compared to other commercially proven processes. The conversion plant will be designed to accept a wide variety of feed gas compositions, and will produce chemical-grade methanol for the broadest market base (Fig. 5). To minimize costs and construction time, the barge-mounted plants will be built in the high technology environment of a domestic or foreign shipyard. Selection of the construction site for each barge will be dictated by the location of the production site and by the relative construction costs. A number of shipyards have the capacity to build several barges per year. The detailed marine engineering to integrate the design of the processing plant with the floating platform can be performed by numerous major engineering companies around the world. Production Economics The barge-mounted plant concept not only assures large volumes of methanol, but it also keeps the overall production cost low by minimizing construction cost and providing access to low cost natural gas feedstock with no alternative or a negative value. Together, these advantages make the barge-mounted methanol plants economical today. The cost structure of a new barge-mounted methanol plant differs from that of existing methanol producers around the world (Fig. 6). For example, if a U.S. Gulf Coast producer is paying $4.70/MMBtu in 1985 for natural gas, the barge plant could afford to pay about $1.6O/MMBtu for gas and be able to deliver methanol to the Gulf Coast at the same price. At some future date such as 1990, a gas cost of $6.70/MMBtu for a domestic producer would have cost parity with about $3.60/MMBtu gas cost for the barge plant. In many foreign markets, feedstocks other than natural gas are used for methanol production (Fig. 7). For example, most of Japan's capacity is based on LNG while Western Europe uses residual oil or naptha. Because these feedstocks are substantially more ex- pensive than natural gas used by U.S. producers, the barge plants will compete even more favorably in these foreign markets. As crude oil prices rise, the value of methanol in each of these markets will increase. However, the hierarchy of methanol values in these markets should remain unchanged. Furthermore, the cost advantage for using methanol in these markets will improve as world energy costs increase since the value of remote gas should not escalate significantly.

Jan 1, 1982