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Gold/Mining/Energy : Gasification Technologies
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To: zebra4o1 who wrote (1547)11/14/2008 7:40:20 AM
From: Dennis Roth   of 1740
 
Well Eastman not a CTL play but a coal to chemicals play, making chemicals from coal and pet coke instead of natural gas. Another
pet coke to chemicals play is CVR ENERGY INC. (NYSE: CVI)
They crack heavy oil in their oil refinery and send the pet coke
next door where they gasify the coke to produce fertilizer. Both oil refiners and fertilizer producers are now out of favor and
the stock has been crushed.

IMO, nat gas prices will remain low until spring, until the effect of capex reductions by the nat gas producers begins to kick in. Fertilizers and other chemicals made from cheaper nat gas will hurt the margins of gasification based chemical producers until nat gas prices and/or fertilizer prices begin to rise again.

$55 bbl crude oil has put a halt to proposed CTL and GTL projects. When $100 bbl oil returns the plans will be dusted off.
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