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Microcap & Penny Stocks : Green Oasis Environmental, Inc. (GRNO) -- Ignore unavailable to you. Want to Upgrade?

To: Ferick who wrote (8789)	2/14/1998 12:21:00 PM
From: Hawkmoon	Read Replies (2) \| Respond to of 13091

Ned, We're not talking about heating oil. The futures contract is merely provides a standard by which to assess the market for #2 diesel. As for the profitability of the process, fully permitted and operating to capacity, let's take Texas, for example. From communications that I had with EVSI last year, they have a .08/gallon state tax for waste oil collectors which is applied to a state pollution fund. Part of their business was providing lubrication oil to several drilling operations in the area. As a service, they removed the waste motor oil for free, but had to pay the .08/gallon tax to Texas. Then they had to pay .08/gallon to the local waste oil collector to take it off of their hands. So they saw the apparent advantage of one of these machines in that they would easily save .16/gallon on some 3/4 million gallons of waste oil they were collecting. Not only this, but they would then be able to process it into #2 diesel(off-road) and either blend it with their other diesel stocks to dilute the sulphur content to #1 specifications, or sell it to the marine and off-road diesel market which had no sulphur restrictions. Of course this was before EVSI found itself engaged in a very difficult restructuring process as the last two years have resulted in major losses for the company from its subsidiary operations. biz.yahoo.com So Ned, where we see the EVSI example, we obviously see comparable scenarios in other states. I have heard that there is a collection fee of some .30/gallon in California due to the problem there. Combined with tightening air quality standards that make burning of low-grade fuel oil and bunker fuel cost prohibitive, the trend will be to the burning of higher quality fuels to include #1 diesel. So if GRNO, one of these days, decides to venture into the California market, acquire a waste oil collector of some adequate size, they would collect a large portion of this .30/gallon fee AND THEN turn around and process it as a high-grade resaleable fuel, thus increasing their profit margin even more. At 1000/gph, there should exist a high percentage of profit margin for any customer with an adequate supply of feedstock. Rather than worrying about the declining use of fuel oil as a heating fuel, think about the increase of cargo transportation that is taking place. When you see 18-Wheelers and the Railroads converting to Natural Gas or some other alternative fuel, then I will begin to worry. Again, the price of heating oil is the easiest measure by which to track the rack price of #2 diesel. However, as the EPA tightens air quality, demand for #4 fuel oil and bunker fuel will decrease, lowering its price, while the price for #1-2 diesel will increase as all of those asphalt and concrete plants, as well as some utilities convert to cleaner burning fuels. Leave it to our government to obstruct the solution to the very problem they are attempting to remediate. Hope this answer clarifies the issue a little more for you. I would suggest that you call some of you local bulk fuel and waste oil handlers and research the efficacy of a GRNO processor for yourself. I certainly know that the DC market could easily accomodate several of the units by itself. Regards, Ron