Coal Liquefaction: Present Status, Future Potential

The energy problem of the U. S; was emphasized by the oil embargo of late 1973 and early 1974 and it seemed for a time that the Federal Government, under pressure from the general public, might take some corrective action. However, this was not the case. With the gasoline lines gone and an apparent plentiful supply of petroleum products, public concern quickly dissipated., This country is more vulnerable to an oil embargo today than we were in 1973-1974 and this fact should be of concern to all our people. Since 1968, we have used oil and natural gas at a much more rapid rate than we have been able to find new domestic sources; thus, there is an increasing gap between domestic production and consumption and we have filled the gap with ever increasing oil' imports. These imports have increased at an alarming rate in the recent past, some 58 percent in 1976 compared with 1975. Imports are nearing 8 million barrels per day. Then, by applying some simple arithmetic, at $12 per barrel, the resulting trade deficit is $96 million per day or $35 billion per year. Obviously, this cannot be tolerated by our economy over a long period of time. Historically, we have shifted from one fuel to another as is shown in this slide. In 1850 about 90 percent of our fuel requirements came from direct combustion of wood, by 1900 we shifted to coal for 70 percent of our fuel, and now about 78 percent of fuel requirements comes from oil and natural gas. The difference is that the previous shifts were voluntary and the one facing us now is of necessity.