Rate of Industrial Conservation - Petroleum Refining, Chemicals and Pulp and Paper Manufacture

This paper considers three related questions: 1) What are the primary economic driving forces which determine the rate of industrial energy conservation? 2) How much industrial energy conservation has been achieved over 1972-1973 levels? 3) What are the goals and expectations for decreases in industrial energy use during the next 10-20 years? The specific energy consumption (SEC) of a plant or industry, measured in BTU of fuel used/ton of product produced, can be used to monitor the energy conserved. The rate of SEC reduction is a function of five primary variables: the potential for reduction of the SEC, the unit cost of fuel, the capital available for implementation of conservation measures, the quantity of fuel available, and the availability: of equipment to implement needed conservation measures. A mathematical-economic model is proposed for the decrease in energy use, and permits calculation of dollars saved also. Conclusions from the study are: 1) Potential savings were estimated as 20-31% of 1972 levels; through 1978 a 13-20% actual reduction in energy use has been achieved. 2) The additional can be realized by; 1982 by "strong action", or by 1987 by "moderate action". To date moderate action has been taken. 3) Overall energy conservation pays out rapidly - dollars saved return dollars invested many fold