To: 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.
To: 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." ![](http://webpages.charter.net/aircover/USAflag.gif)
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.
46 posted on
03/03/2006 2:07:59 PM PST by
Southack
(Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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