The prospects of coal-to-oil conversion
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This post was last edited by jordan569 on 2013-1-6 at 20:33. With crude oil prices soaring at present, what are the profit prospects for Yitai Coal-to-Oil and Shenhua Coal-to-Oil in such favorable conditions? Those who know, please share! . Note $ # , $ $
Shenhua does have capabilities for direct liquefaction, but there are continuous problems; those issues need to be resolved first. The several options for indirect liquefaction not only have a smaller scale but also present many problems that are gradually coming to light; it’s still too early to talk about profitability. Fortunately, these companies, benefiting from coal-to-oil technology, have coal mines that allow them to generate sufficient profits on their own. If such loopholes are not addressed domestically, the development of coal-to-oil technology will never progress satisfactorily. The best approach is to **mandate that the coal allocated to these enterprises for coal chemical production must be used exclusively for that purpose, not for any other use**, and to enforce strict supervision in this regard.
Hehe, I’ll pay the bank interest first; but we’ll turn a profit soon
This post was last edited by jordan569 on 2011-3-1 08:10. Coal-to-oil production can ultimately be profitable, but you can’t sell the products you produce; you have to pass them on to Sinopec and CNPC, which naturally reduces the profit margin significantly. However, the by-products of coal-to-oil production—p-xylylene, liquefied gas, and phenols—are very expensive. So, in the long run, the prospects are quite promising!