Chemical Processing - March 2008 - (Page 21)

Hopes that fallout from the subprime lending asco would mainly impact the U.S. and Western European economies seem largely misplaced now as its malaise spreads ever wider around the globe. The ongoing tribulations of the world economy are making even the modest growth predictions made late last year by the American Chemistry Council (ACC), Arlington, Va., (www.ChemicalProcessing. com/articles/2008/006.html) seem quite optimistic. ACC did warn, though, that ongoing nancial problems and an oil price shock could take a toll. Other problems are emerging, too. Even before subprime problems surfaced, China was always going to be the economic driving force for global development over the next few years. Now, however, that country is suffering its worst winter in decades. Food costs have climbed 18% as a result of snow-related supply problems. In ation has hit an 11-year high in January, an annualized 7.1% — up by more than ½% compared to the previous month. On the other hand, however, a low dollar is good for U.S. exports, particularly if overseas growth remains robust. If this is the case, last year’s $154 billion export gure could rise to $169 billion this year and $180 billion in 2009, says ACC. Latest data from ACC (p. 13) show shipments of chemicals rising and capacity utilization hovering just below 80%. So, continuing strong demand for exports should edge U.S. capacity utilization to 80% in 2008. It’s not just the mainstream chemical producers that are enjoying high capacity utilization. In August, the American Petroleum Institute (API), Washington, D.C., reported 90.8% re nery utilization rates, the highest level since September 2006. Production of gasoline hit 9.325 million bbl/d, another new record. By November, re nery activity was the highest in three years. API’s annual statistical report published in late January noted that overall capacity utilization averaged 88.1% for all of 2007, up slightly from a year before. Meanwhile, the International Energy Agency (IAE), Vienna, Austria, predicts that global re nery crude runs will average 74.3 million bbl/d for the rst quarter of 2008, a year-on-year increase of 1 million bbl/d. While it remains to be seen how much further damage the subprime asco can do to the world economy — there are rumors of major investments in the Far East being postponed by many years — high capacity utilization is spurring companies to place even more emphasis on asset optimization. And, because at many plants, distillation plays a crucial role, demand for mass transfer products and services is booming. Operating companies are looking to gain improvements through everything from better packings and trays to improved control systems and simulators. “The biggest trend at the moment is the massive number of projects. There’s a huge uptake after the lull in the late 1990s,” says Gary Sturtevant, industry segment leader in UOP’s Re ning Business Unit, Des Plaines, Ill. UOP also is building up a healthy stream of business for its new Eco ning technology. This converts raw materials such as vegetable oils into biodiesel. “The challenge here is that we are not dealing with traditional hydrocarbon feedstocks, so we are having to do a lot of development work associated with their [the biofeedstocks] handling and p r o c e s s i n g ,” he notes. (For more on developments in biodiesel, see www.Chem http://www.chemicalprocessing.com/articles/2008/006.html http://www.chemicalprocessing.com/articles/2008/006.html http://www.chemicalProcessing.com/articles/2007/177.html

Table of Contents Feed for the Digital Edition of Chemical Processing - March 2008

Chemical Processing - March 2008 Contents From the Editor ChemicalProcessing.com Field Notes In Process Energy Saver Compliance Advisor Distillation is Bubbling Feel Secure About Vulnerability Assessments The Door Opens For Membranes Achieve Effective Heat Exchanger Control Epoxy Maker Finds the Right Glue for Its Business Process Puzzler Plant InSites Equipment & Services Product Spotlight/Classifieds Ad Index End Point

Chemical Processing - March 2008

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