Document oe8VkL6K93kxDK0gYQv5VdLEo

Date: Subject: By: December 24, 1970 Cable Oil Market Study and Contact Reports on Eastern Cable Manufacturers J. S. Pullman The attached report was compiled by J. S. Pullman in accordance with the action plans set October 19, 1970 by Baber, Bryant, Davis, Roder & Roush. A summary of this report appeared in the Status Report - Cable Oils issued Nov. 30, 1970 by Roush. D. E. Roush Distribution: M. F. Baber - MBABE H. S. Bergen - HBERG ' t r P'-iv'* p-vMj-gi _ pbeni R. Davis - RDAVI J. R. Fallon * JPALL T. L. Gossage - TGOSS R. H. Munch - RMUNC J. S. Pullman - NEW YORK W. R. Richard - WRICK J. J. Roder - CHICAGO D. E. Roush - DROGS J. C. Wygant - JWYGA r DSVM 201754 STLCOPCB4059821 Market Study: High Pressure Cable Fluid Applications Interviewed: General Cable, S. Turner, 11/3/70 Phelps Dodge, J. Moran, H/16/70 Okonite, R. Waldron, 11/4/70 Anaconda, E. Eich, 12/4/70 Contents: Section A Summary I The Market II The Price III The Specifying Influence IV The Product V Attitude Toward New Source VI The Testing Program VII Conclusion Section B Interview Details - Individual Opinions I Fluids Used for Impregnating and Billing II Fluid Specifications - Order of Importance III Fluid Testing Specifications IV Awareness of Alkyl Benzenes V Commentary on Selling Price VI Evaluation of Present Sources DSW 201755 STLCOPCB4059822 SECTION A SUMMARY I. The Market - 3 million gallons in 1971 All companies interviewed agree that the demand for fluid filled cable is increasing at s greater rate than expec ted. Anaconda reports that an anticipated 25$ annual in crease in pipe cable demand is running at 45$ actual. At the present rate they question the ability of the in dustry to produce the cable. They forsee 3 MM gallons fill next year. About 90$ will be static (insulating only) and 10$ mechanical fluid (insulating and cooling). It is expected that in ten years the 90-10 ratio will be reversed. Generally speaking, the present demand for static fluid is satisfied with mineral oils and the demand for cooling fluids with polybutenes. II. The Price - $.5Q/gallon and $.85/gallon The selling price for the static fluids is quite firm at $.50/gallon. Upgrading the fluid by vacuum treating at the refinery adds $.10/gallon. Upgrading the fluid by treating at the cable manufacturers plant adds as much as $30/gallon for rehandling. Anaconda does this and resells the fluid at $.8o/gallon as part of their overall package; i.e. cable, fluid, installation and start up. It is generally agreed that a cooling fluid can sell 'for more if it can do more in saving on pump size, power input and heat exchange surface. There is a strong respect for heat transfer ability. A temperature drop as low as 10F re flects an enormous increase in cable power carrying capa city. Given the right product, carefully marketed to feature heat transfer related savings, will result In a credible price structure. III. The Specifying Influence The cable companies feel strongly that they determine the product. There have been some independent purchases, in the past, by Utility companies such as Boston Edison, Consolidated Edison, Pacific Gas & Electric, Commonwealth Edison and Florida Light, but these are considered isolated Incidents in which the cable companies have at least ex pressed advisory influence. DSW 201756 STLCOPCB4059823 2- - IV. The Product Would have to be compatable wita mineral oils and poly butenes now being used as impregnants. Following in importance is low power factor, high insulating quality and low viscosity. Assuming that any Monsanto candidate fluid will be similar to polybutene in these properties, our greatest area of acceptance would be gained in fur nishing a product of the highest priority. The product should be exceptionally dry# without traces of gas, shipped in clean tank cars under an inert blanket. A very low viscosity product would be attractive, but not so low that it might absorb gas in shipment or cause inordinate pump wear in the system. Thermal stability is required in the range of 75C.to 125C. V. Attitude Toward New Source Generally, a welcoming attitude. The cable manufacturers have expressed a genuine interest in a Monsanto offering. The only exception was Okonite. The interview at Okonite did not arouse the interest expressed by the others. How ever, this is partly explained by the forthcoming (eight months) retirement of Dick Waldron and the fact that the company was recently sold to Ling Temco Vought, a somewhat confused business atmosphere at the moment. Of the many suppliers who have made offerings to this market only a few have retained the respect of the cable manufacturers. Sun, American and Cosden seem to be fairly steadfast sup pliers. Others, like Standard Oil and Chevron, have mar keted fluid and then withdrawn it when the market was stronger elsewhere. Witco produces an attractive brochure, enclosed, but has not demonstrated serious intentions to supply fluid on a "service" basis. Anaconda claims that they have actually campaigned with polybutene suppliers to raise the price in order to assure their presence in the market. VI. The Testing Program All, with the exception of Okonite, are willing to inves tigate our fluid candidates. They would expect us to submit the fluid with a reasonable amount of data: speci fic gravity, viscosity, specific heat, power factor, etc. It would be preferable if we drew data comparison against existing standards such as mineral oil and polybutene. Our effort should be in the direction of a high purity de gassed sample. Phelps Dodge recalls looking at a Monsanto product in the past, about six years ago. They recall it as a dodecyl or tridecyl product but cannot recall any other specific details. Other test programs are under way. DSW 201757 STLCOPCB4059824 3- Phelps Dodge is working with General Electric on cryo genic cooling. Anaconda is active with Philadelphia Electric Co. on finding physical improvements (better baffling, higher fluid velocities) to an existing test loop. Linde Division is working on gas cooled cables. VII. Conclusion The need for cooling fluids and systems is urgent. Many efforts are under way; Consolidated Edison has an oil to air system and an oil to water system in opera tion. There are several systems in operation utilizing mechanical chillers. New efforts are under way involving fluids and cryogenics. Our franchise in electrical fluid technology and in heat transfer fluids places us in a unique marketing position. This, coupled with the need for a reliable source, should make any effort in develop ing this market for Monsanto reasonably sure of success. DSW 201758 STLCOPCB4059825 -4- . SECTION B INTERVIEW SUMMARY - INDIVIDUAL COMMENTS AND OPINIONS I. Fluids Used for Impregnating and Pilling General Cable: Impregnate with a viscous grade of polybutene, more vis cous than generally used for cable filling. Has in plant storage system 200,000 gallon supply. Pill cables with Sun 7$6, Cosden 015SH, American 15H, Mobllect A. Have had experience with gas cooling. No and SPg. Prefer to fill with oil. Phelps Dodge: Impregnate with parafinic based Sun oil. Use polyisobu- talene with gas cooled cables. Pill with mineral oils. Sun and Witco Golden Bear. Also, Amoco and Cosden poly butenes. . Anaconda; Impregnate with napthanic based Sun oil. Pill with Sun 6 and American polybutene. Okonite: Impregnate with heavy grade, 15H, polybutene. Pill with Sun 6, American and Cosden polybutenes. Pill low pressure cable with Mobilect A, substitute alkyl benzene in Europe. II. Fluid Specifications - Order of Importance All require compatibility with impregnating fluid. General Cable: 1. Low power factor < .005 aged to .01 2. Low viscosity, lower than Mobilect A 3. Good dielectric, 35KV 4. Pure product - no additives or- stabilizers 5. No entrapped gas that would escape under electrical or thermal stress dS\N20a759 STLCOPCB4059826 -5- Phelps Dodge; 1. Low viscosity, 50 SSU at 100 2. Low power factor, .005 acceptable 3. High purity and stability 4. Good dielectric 5. Reasonable boil point, they vacuum treat fluid before fill . 6. Low pour point <-25F Anaconda: ' 1. High purity, oxidative stability, no particulate matter, no acid or other chemical contaminants 2. Low power factor . 3. Good dielectric . 4. Good thermal stability at 125C Okonlte: 1. Price . 2.. Low viscosity 3. Low power factor 4. Good dielectric III. Fluid Testing Specifications All companies, except Okonite, have expressed a willingness 'to test Monsanto fluid. Okonite would prefer to do so upon request from ~ lity customer. ASTM procedures prevail. /Gravity API .--Specific Gravity ./Flash Point Viscosity /Pour Point /Color \pielectric /Sulfur t/Neutralization Water Content --Inorganic Chlorides /Power Factor Resistivity D-287 D-1298 D-92 D-445-446 D-97 D-1500 D-.877 D-9S9, - 129 D-974 D-1533 D-878 - D-924 D-II69 IV. Awarenessof Alkyl Benzenes General Cable: Not familiar DSW 201760 STLCOPCB4059827 6- - Phelps Dodge: Aware of use in Europe. Investigated a Monsanto fluid, dodecyl or tridecyl, about six years ago. Re jected it for use, but cannot recall fluid specs or rejection reasons. Anaconda: Used 5$ to 10$ added as a viscosity modifier. Aware of use in Europe in low pressure cables. Okonite: Aware of alkyl benzene. Use in place of Mobilect A in European low pressure lead sheath cables. V. Commentary on Selling Price as Related Fluid Advantages General Cable: Static fill, insulating only, just be at approximately $.50 per gallon. Fluid used for heat transfer fill can be as high as $1.00 per gallon provided there are system benefits, i.e. pump savings, surface savings, etc. Phelps Dodge: Static fill should be $.50/gal. for vacuum treatment at refinery, believe it is worth $.C5/gal. Treatment con sists of vacuum distillation for water and gas removal. At 1.0 mm HG. Anaconda: Static oil should be at $.56/gal. Could get more for super clean. They buy and treat at Hastings plant. Resell at $.80/gal. Bury price in overall contract to sell and in stall cable. Okonite: Only one of four that would not specify a higher priced product. DSW 201761 STLCOPCB4059828 7- VI. Evaluation of Present Sources General Cable: Sun Oil and Cosden, major suppliers. No availability prob lems. Many quality problems. Phelps Dodge: Sun, Cosden, American. No supply problem. Dissatisfied with purity. Anaconda: Expresses more concern than any other manufacturer over sup ply and purity problem. Sun and Cosden major sources. Okonite: No real problems in availability or quality. DSW 201762 STLCOPCB4059829