We earlier sent you a report of research performed by British workers confirming not just the technical reality of coal-to-liquid fuel conversion technologies, but their genuine economic practicality, as well.
Since cost objections, as opposed to nuts and bolts, and aside from what we have documented to be misplaced environmental concerns, seem to be the primary public hurdle to establishing a viable coal conversion industry, with the real potential for entraining elements of sustainability, in the United States, we thought we would fill you in on how a petroleum company sees the nickels and dimes.
The enclosed report isn't clearly dated on it's cover page, but the inter net web links indicate is was published in 1996. The report cites references from 1995, so it was made "available", after a fashion, more than a decade ago.
It is entitled:
"Fischer-Tropsch Indirect Coal Liquefaction Design Economics - Mild Hydrocracking Vs. Fluid Catalytic Cracking"
by
"Gerald N. Choi, Sheldon J. Kramer and Samuel S. Tam (Bechtel Corporation, San Francisco, CA)
Joseph M. Fox 111 (Consultant)
William J. Reagan (Amoco Oil Company, Naperville. IL)"
First, we excerpt an intriguing, but by now unsurprising, acknowledgement, as follows:
"Bechtel, along with Amoco, who was the main subcontractor for a major portion of this study, expresses
our appreciation to the DOE Pittsburgh Energy Technology Center for both technical guidance and
financial funding under Contract No. DE-AC22-91PC90027."
our appreciation to the DOE Pittsburgh Energy Technology Center for both technical guidance and
financial funding under Contract No. DE-AC22-91PC90027."
So, not only was the actual work done by an oil company, it was reported to our employees: The US Department of Energy; and employees of the DOE in a local, Pittsburgh, PA, office, at that.
Why haven't we, the people, the owners of the DOE, received this report? Especially those of us dependent upon coal industry in the Pittsburgh environs?
In any case, the oil company our employees saw fit, for whatever reason, to have study the economics of converting coal into liquid fuels discovered that the price of oil made from coal would vary between 33.2 and 35.8 dollars per barrel, depending on the exact technology they used to convert coal into oil.
That finding is presented in their concluding statements, and we won't excerpt herein the complete paragraph.
But, in 1996, our US Department of Energy, and their contractors, confirmed that we could make a barrel of oil, out of coal, for less than 40 bucks: "between 33.2 ind 35.8", dollars per barrel, according to the report.
Since 1996, how much has oil gone up in price? How much has coal gone up in price?
Amoco and our USDOE did the math in 1996. It's time we did it for ourselves, now.