Liquid and gaseous oxygen is produced in an energy-intensive air separation processo that also generates nitrogen. More than 65% of the cost of oxygen is attributable to energy costs. Energy use and materials flows are analyzed for various air separation methods. Effective approaches to energy and material conservation in air separation plants include efficient removal of contaminants (carbon dioxide and water), centralization of air products user-industries so that large air separation plants are cost-effective and the energy use in transportation is minimized, and increased production of nitrogen. Air separation plants can produce more than three times more nitrogen than oxygen, but present markets demand, at most, only 1.5 times more. Full utlization of liquid and gaseous nitrogen should be encouraged, so that the wasted separation energy is minimized. There are potential markets for nitrogen in, for example, cryogenic separation of metallic and plastic wastes, cryogenic particle size reduction, and production of ammonia for fertilizer.