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Linn Energy, LLC (LINE) Message Board

  • rlp2451 rlp2451 Jun 6, 2012 3:34 PM Flag

    Guar Gum

    A shortage of a guar gum is expected to put Halliburton's (HAL) profit margins in a sticky situation.

    The world's second-largest oilfield services company said a shortage of the food additive that is also used as an additive to hydraulic fracking liquids will cause its North American profit margins to tighten by an additional 300 basis points. In April, Halliburton originally predicted a rise in the price of guar gum would only cause a 200-250 basis point squeeze. Now it's forecasting a 500-550 basis point drop.

    "Though the company believes these increased costs are transitory once new supplies are available in early 2013, the company is seeking to mitigate these costs in the second half of the year through seeking relief from customers and increased usage of synthetic and other guar alternatives," Halliburton said in a statement.

    While guar's most common usage is in the food industry as a thickener in dairy products and to increase shelf life in baked goods, it's also used in textile and paper production. The boom in fracking in the Mid-Atlantic and Midwest has lead to a shortage of guar gum.

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    • TEXAS! It is grown in Texas right now.

      behavior at 45

    • It grows well on very marginal land and has been heavily researched as a way improve or rest farm land. Our government developed local strains for this country.

      Any other ignorance you would like to share this morning?

      You left ut some vital info. The seeds they developed only 2 worked the rest failed or didn't provide enough evidence that they would work. It is amazing how you leave vital info out of your posts for your self serving info.

      Anything else Mr arrogant

    • You need to man up. 3 words about this subject.


    • No routine. just keep studing and you will realise the crop isn't as easy to grow as yu beleive.

      Go do some studing the and educate yourself the rest of the afternoon.

      later gone surfing

    • No routine. As i said this will all blow over and you will be left holding your you know what as always.

      Keep digging you will find out how this crop really grows andwhat it needs.

      Go educate yourself the rest of your afternoon.

      later gone surfing.

    • You need to man up. I already posted facts about texas. Go read. You just like to argue and always want to be on top.
      What a jerk.

    • Hey at market price a good crop would be $11k per acre.

      Pretty good for a rotation crop. Not to mention the rest is good fodder.

      Which routine will you give me this time?

    • They grow it in Texas right now! Bet the terrible drought has something to do with the supply issues too.

      For the past 30 years, guar grown the U.S. has been harvested primarily with a conventional grain header, regardless of condition of planting condition or cultivation. In 1998, West Texas Guar conducted an independent harvest trial, with a conventional platform header and a flex header. The results were inconclusive because we had no proven method of determining bean loss per acre.

      In 1999, working with TAEX's Dr. John Sie and Dr. Calvin Trostle, we developed a method for determining harvest yield and bean loss and conducted another trial. This harvest trial compared a pickup attachment, a row-crop header, and a flex header. The row-crop header gathered the highest quantity per acre — 20% more than the other methods tested. Read the harvest efficiency report.

      Back to Top of Crop Production

      In 1999, guar yields ranged from 350 to 1725 lbs. per acre on dry land. Irrigated land yielded from 500 to 2250 lbs. per acre. The average production for 1999 was 774 lb. per acre. Under ideal conditions, guar yields can be as much as 4500 lbs. per acre.

      Back to Top of Crop Production

      I would say man up but that is not possible. ;-)

    • I spoke to a rancher and a row farmer today. The farmer has used gaur as fertilizer which is differnet than growing the pod. The plants need several drenchings of heavy irrigation.

      You are the 1 who is flinging pooh. The midwest has too many weather extremes. You just love arguing your factless point.

      You just proved my point. The growing of the seed is tough. It takes certain conditions. in other words and pay attention now. It is easier growing cotton or other crops than guar. Why do you insist on arguing these facts.

    • Mhaer's Opinions!

      Rather than flinging more pooh just admit you had an uniformed source.

      It needs irrigation in California. Scattered rains in the Midwest are ideal. That simply does not happen in California.

      I spoke to a rancher and a row farmer today. The farmer has used gaur as fertilizer which is differnet than growing the pod. The plants need several drenchings of heavy irrigation. The rancher was not impressed as animal feed although he was looking at it again given the corn corruption.

      He will put his water in the hope he can keep his groves alive.

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