THE SYNTEHTIC FUEL CORPORATION'S PROGRESS IN AIDING SYNTEHTIC FUELS DEVELOPMENT

It has been difficult for the Corporation to make progress toward the goals of the Energy Security Act of June 1980 because of the changing economic and energy conditions. Relative to the 1987 production goal of 500,000 barrels of crude oil equivalent per day, the Corporation had awarded contracts for two projects expected to have a total production equivalent of 9,500 barrels of crude oil per day. Including these two projects, the Corporation has said that it plans to award by early 1985 up to $14.8 billion in financial assistance for about 12 projects representing a diverse range of technologies, which would have a combined total production of about 132,000 barrels of crude oil equivalent per day. These plans may be affected by a recent administration proposal to rescind $9 billion of the Corporation's remaining unobligated funds. Private industry officials said that synthetic fuels projects have been abandoned or postponed primarily because of an unfavorable economic climate, a world oil glut that has caused declines in crude oil prices, the uncertainty of future crude oil prices, and the large capital investment needed for project construction. These officials also said that 1982 tax legislation, by reducing the after-tax return on investment, has also caused industry to abandon or delay going forward with synthetic fuels projects. (Author)

• Supplemental Notes:
  • Report to the Chairman, Subcommittee on Fossil and Synthetic Fuels, Committee on Energy and Commerce, House of Representatives.
• Corporate Authors:

  U.S. General Accounting Office

  441 G Street, NW
  Washington, DC  United States  20548
• Publication Date: 1984-7

Media Info

• Pagination: 21 p.

Subject/Index Terms

• TRT Terms: Development; Economic factors; Equipment; Petroleum; Productivity; Research; Synthetic fuels
• Uncontrolled Terms: Research and development
• Subject Areas: Administration and Management; Economics; Geotechnology; Highways; Materials; Research; I10: Economics and Administration;

Filing Info

• Accession Number: 00390231
• Record Type: Publication
• Report/Paper Numbers: GAO/RCED-84-46
• Files: TRIS
• Created Date: Nov 30 2002 12:00AM