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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: jackie who wrote (9585)1/24/1998 9:07:00 PM
From: Tulvio Durand  Read Replies (1) of 95453
 
Re: Syntroleum -- It's competitive with crude anywhere above $15 per barrel. I doubt that. Exxon's plant in Qatar which makes oil from gas using a similar process (Fischer-Tropsch) converts at $31.60/bbl. che.com Admittedly, Exxon's process requires pure Oxygen while Syntroleum's processing uses air, which should reduce conversion cost significantly. But I don't believe that the latter reduces cost by 50%. With $16 oil there will be few lining up to buy this process, IMO. But I will keep my eye on SLHO, as it could take off when oil does and at faster rate than drillers. Tulvio
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