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Bdc6E Chapter 1

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Submitted By AZIZO
Words 5004
Pages 21
In August 1980, I was named general manager of the newly created Westinghouse Synthetic Fuels Division (SFD). The division’s nucleus was a department engaged in coal gasification research and development and supported, in part, by the U.S. Department of Energy The technology was highly regarded, and the outlook for synthetic fuels was promising. Oil prices were continuing to rise; worldwide oil shortages were forecast, as were crude oil prices of $100 per barrel; and the Carter administration had just created the Synthetic Fuels Corporation to stimulate the production of synfuels from domestic resources and reduce U.S. dependence on imported oil. Before my assignment at SFD, I had been general manager of a division that marketed turbine generators and related services worldwide. My 16 years with Westinghouse had been spent selling complex, high-technology systems to sophisticated customers. My charge from the president of Westinghouse’s Power Systems Company (then my boss’s boss)was straightforward: “ We think we have a very promising coal gasification technology—maybe one of the best in the world. See what you can do to make it into a good business. You may conclude that we can’t, and that’s an okay answer. See what you can do. I’m always available to consult and help. Keep me informed.”

When I first arrived at SFD, I had mixed feelings. The Waltz Mill site, located 35 miles south east of Pittsburgh and set in rolling hills dotted with small farms and houses, was (and is) beautiful. At the time, about 100 people worked on the site, which included the coal gasification pilot plant, its support buildings, and offices. An additional office building and a test facility were under construction. Looking around the site, ¡ felt both the challenge of a great opportunity and the threat of a situation that in many respects, notably technology and market, was foreign to

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