What happened to the frenzy over synfuels development which occupied so much national attention a year or two ago? The program still lives but the current world oil “glut” and resultant stabilization of oil prices have shoved it to the back bumer. It was in the period of surging oil prices linked to the Iran-Iraq war that Congress and the Carter Administration established the Govemment-sponsored U.S. Synthetic Fuels Corp. to nurture a new industry for producing oil from shale rock and gas and other fuels from coal. Private companies responded with enthusiasm. A total of 63 sought govemment financial backing. Today the principle of government support survives but the originally-intended pace has slowed. Many are cutting back, deferring or cancelling projects. Expert opinion about the slowdown is divided. according to The Wall Street Journal. Fred Singer, professor of environmental sciences at University of Virginia. sees wisdom in a cautious pace. If the U.S. moves too quickly to build a large domestic synfuels industry. he says, a huge oil surplus will result. This. the professor warns, could depress would oil prices and leave synfuels projects economically stranded. But Stephen Smith. director of U.S. Energy Service for Data Resources Inc. Believes the nation is being lulled into complacency about world oil supplies. He suspects Saudi Arabia may be using its large oil reserves to keep the supplies just large enough to maintain prices below the level at which synthetic fuels could be competitive. Slowing synfuels development, Smith contends, will sow the seeds of another sharp rise in crude oil prices. The government synfuels corporation headed by Edward Noble seems to be following a middle course. reasonable under the circumstances. Noble believes that proving synthetic fuels can be produced at an acceptable cost will help put a limit on furture OPEC price increases. , Word from Washington is the White House although urging prudence in use of federal funds. will support Noble. The Journal quotes Sen. James McClure, Idaho Republicn who heads the Senate Energy Committee, as saying between four and six major projects will be started with government assistance within a few years. Even though the improved world oil outlook has dampened the initial synfuels enthusiasm, it makes sense in the longrange view for the govemment to continue to encourage the private sector in testing and development. Chairman Noble thinks the synfuels industry will get off the ground years earlier with government support than without it. He probably is right.