[taxcontrol]

Hmmm, interesting analysis.

From that we could reasonably assume that the delta between the coal cost and the oil cost could be returned to the customer. That would be a potential savings of $56 dollars or about $14 per barrel. That would put the break even point at about $48 per barrel.

Not bad considering the current market.

[Southack]

"Hmmm, interesting analysis. From that we could reasonably assume that the delta between the coal cost and the oil cost could be returned to the customer. That would be a potential savings of $56 dollars or about $14 per barrel. That would put the break even point at about $48 per barrel. Not bad considering the current market."

The rule of thumb back in the 1970's was that oil above today's $50 per barrel was a break-even for coal oil, and that long-term prices (no one invests based upon a mere temporary price spike, of course) above $60 per barrel would start to give refiners the incentive needed to begin making initial coal oil investments.

You can make a case that we are finally there...at that investment point.