Plant Services - December 2007 - (Page 15)

energy eXPerT Energy’s “perfect storm” Why do so many companies still refuse shelter? L ing in a major global U.S. manufacturing company. He emast month’s column about how hard it is to share enphasized the need for a holistic approach and added, “New ergy productivity best practices inspired some intertechnology is great and will always be welcome, but why do esting reactions. we (politicians/decision-makers/engineers) have to procrasPredictably, one was from a company offering a technical tinate and why would we not do what’s appropriate in the solution for efficient steam management, intensely frustratpresent time?” When we are on a burning platform, a readed that they couldn’t sell a $360,000 investment that would ily available, proven solution would seem a far better option save the client more than $1 million per year. The customer’s than a perfect solution that might develop in the future. strangely common rationale for not moving forward was Crude oil prices have moved close to $100 per barrel, that the results seemed too good to be true. caused by changes in the dollar exchange rate and oil market My advice is that they stop trying to get the customer to fundamentals. The conventional wisdom is that high prices accept the benefits of such an investment, and change the and volatility are here to stay. Recent Intergovernmental conversation to one of management accountability. Panel on Climate Change reports raise the political likeliIt would sound something like this: “Can you explain why hood of significant action to more aggressively it’s good business to leave $1 million of cost mitigate greenhouse gas emissions. reduction on the table when your industry A new government was recently elected in faces some of the toughest global competition Colleagues and Australia professing plans to formalize its nain history? It seems an odd way of fulfilling even bosses tional commitment to mandatory greenhouse your duty as a company officer. Further, this cost reduction would be based on proven ap- remain skeptical. gas targets. This is an interesting comment on the power of a climate debate that was a nonproaches and paid back in four months. What issue only a few years ago. other investments yield a risk-free 300% reThree key factors that need to come together to produce turn? As part of an integrated energy management plan, the the perfect energy storm are coalescing rapidly in North value of energy productivity would likely enhance operating America: high energy prices and fears they’ll head higher; profit by at least 30% within three to five years. In the interpolitically challenging energy supply sources; and fear of ests of shareholders, how can you ignore it?” major environmental impacts. In a recent survey of U.S. This might not be the best approach for our reader to get State Electricity Regulators, the most important issue was an order, but it’s increasingly the nature of questioning from environmental concerns, followed by electricity costs and shareholders, directors and customers. Senior officers will availability of generating capacity. Just two years ago, envineed better answers than they have had in the past. ronmental concerns weren’t among their top five issues. The second reaction came from a Danish engineer, recallAs each month passes, the role of corporate energy maning his youth in the 1960s at the height of the cold war. agers becomes clearer. They must urgently develop workable He was told, in case of a missile attack from the U.S.S.R. strategies to simultaneously manage energy cost, price volaand east bloc countries, to just lie down – there wouldn’t be tility, rapidly changing technology, environmental impact enough time to seek shelter. Western Europe’s economy was and reliability in an uncertain regulatory framework, and rapidly growing and desperately needed more energy. The with many colleagues and even bosses who remain skeptical only convenient place to get it was from the U.S.S.R. and its of the need for such an integrated approach. Not the easiallies. This was a key factor in Europe’s early focus on energy est task in the world, but one that is becoming increasingly efficiency and supply security. At the same time, acid rain, important and in demand. largely from power generation, was devastating the rivers and forests of northern Europe, further underlining the urgent need for more rational energy use. Peter Garforth is principal of Garforth International LLC, Toledo, Yet another reaction came from a process engineer workOhio. He can be reached at garforthp@cs.com. www.PLANTSERVICES.com 15 December 2007 http://www.PLANTSERVICES.com

Table of Contents Feed for the Digital Edition of Plant Services - December 2007

Plant Services - December 2007 Contents From the Editor: Orange Alert The PS Files: Pressed into Innovation Up and Running What Works: Samuel Adams Facility Refreshed in Cincinnati Energy Expert: Energy's "Perfect Storm" Technology Toolbox: Know Your Position Cover Story: Get a Grip on the Steamer Piping: Outside Looking In Web Hunter: Potpourri X In the Trenches: Making a Big Stink Boiler Room: Getting Educated

Plant Services - December 2007

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.