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To: RightWhale
producing 100 barrels from a $30 million plant is not good business

1) It's a pilot plant, and will therefore be more expensive than future setups. 2) It currently produces 100 barrels/day but is capable of ramping up to 500/day, as I recall

70 posted on 06/09/2004 12:45:47 PM PDT by kevkrom (Reagan lives on... as long as we stay true to his legacy)
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Furthermore... let's assume they only produce 200 barrels/day on average, at a production cost of $18/barrel. If the market price for oil is $32/barrel, that's $14/barrel profit, or a little over $1M profit on $2.3M revenue from just the oil side of the operation. At $40/barrel and 500 barrels/day, we're talking $4M profit per year from oil revenues alone.

The you have to add in what the value of disposing of all of that waste is.

74 posted on 06/09/2004 12:57:10 PM PDT by kevkrom (Reagan lives on... as long as we stay true to his legacy)
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