Great, but around the Great Lakes. The biggest client of steel is the auto industry. Ford is going aluminum. So much for great steel from MN. Add that to Chinese steel that was used because of union wishes, so Chinese steel was used.
ALDW is a MLP who’s only assets are the Big Spring refinery and the 7 Eleven stores. ALDW is own by ALJ which own and operate other refineries in Louisiana and California. ALJ is Alon USA who’s minority partner is Alon Israel, ALJ is 48% own by Alon Israel and 52% Alon USA. I understand that Alon Israel give up the majority control not too long ago. I have to assume that Alon USA owners are different than Alon Israel or Alon Israel would be majority owner.
Delek want to buy Alon Israel, therefore Delek would be the minority 48% owner. Delek will replace the Alon Israel board members, therefore, pure speculation, the assets of ALDW MLP may change by adding another refinery to the assets of ALDW. This will add refined products to the existing 73,000 barrel per month. Refineries profits are based on the Crack Spread. By enlarge AJL refineries are inland and well placed to take advantage of the crude discounts, except the Bakersfield CA refinery which get its crude from the West Coast Alaska crude or imports. Adding assets to ALDW may not be that bad of a deal, expect for CA refinery.
You are right MSB sales only to the great lake area. The cost of getting the ore through the ST Laurent is too expensive. MSB market is the steel mills around the great lakes. Do not forget that the new San Francisco bay bridge was made from Chinese steel?? Chinese our comes from Australia, Brasil but little from the US. That does it??
Delek is buying Alon Israel not Alon USA the majority owner. ALDW is a MLP who's asset is the Big Spring refinery. ALJ has tried to include another refinery in ALDW. The market conditions were not good, and it was postpone. If Delek is the minority owner, the BOD will have new members. The new BOD may change the assets of ALDW the MLP. Until this happen, ALDW stays as is.
ALDW is a MLP owned by ALJ. Delek is not buying the Alon USA, the majority owner, but the Israel side of Alon the minority owner. There is no mentions of ALDW the MLP. Should not change the value of ALDW just the minority owner. I understand that ALJ would like to add another refinery to ALDW. So far it has not happen, because of markets conditions. It may be possible that Delek may want to do that with one of their refineries. That is just pure speculation.
In April 2014 I read an article about Excelyte in RigZone. RigZone is a web site totally dedicated to the upstream of the O&G business. This article the start of Excelyte as the clean up product for H2S and other pollution in the drilling business. Excelyte is FDA approved for hospital use, should be approved by the EPA.
IEVM with the change of management more cognizant in O&G represent the commitment of Excelyte to the drilling pollution. This last year as seen Excelyte been tried out on a couple of wells to been used in over 150 wells. So far looking at the competition, I do not believe in the US Excelyte has a pollution free competition. Although I own IEVM for a year, I am long, new fracking regulations will be positive in the Excelyte use, which is FDA approved.
So far the Crack Spread from March 15, 2015 through to day is $18.22 average. I am using the 3-2-1 Crack with the index prices. ALDW is getting discount prices on the WTI and the WTS. I am optimistic for a good quarter.
Many do not understand what "crack spread" is! they just go by the index crude prices. They also do not understand that the refinery location , Big Spring, gives ALDW good discount prices, especially when storage in Cushing and GOM are getting full. ALDW will be back to $20 before Xdate.
Last year ALDW had a lengthy turn around; ALDW added some equipment to be able to process WTS as well as WTI. This new equipment has increased the refinery through put. I believe the 2015 turn around will be short.
Should the Cushing as well as the GOM storage become full, ALDW is well placed to take advantage of good discounts. The price of distillates is based on GOM refineries. Therefore the feed stock in Cushing Midland will probably be very good. So Far ALDW Q1 2015 the Crack Spread is $19.62. Q4 2014 the crack spread barely made $10.00. These 2 crack spreads are standard 3-2-1 WTI. I am sure ALDW bought at discount.
The new Fracking regulations that will take effect in 90 days will be positive for Excelyte. The regulations will touch the fracking wastes. I can see Excelyte use in making this waste pollution acceptable for reuse or disposal. H2S is, so far, the primarily use for Excelyte, but Excelyte is a biocide that can neutralize, from an environmental angle, other pollutant bacteria. Chlorine has been the other disinfectant, but chlorine cannot be disposed of as easily as Excelyte, and more expensive.
Let’s hope this is the case!
I just received a message while log in in Google that is asking me to authentify my Google account. They are asking everything.
I have to take this as a hoax and did not reply.
As anyone experience the same. Hope Google knows about it and will do something about it??
The dollar is strengthening at a faster rate, 4% in the last 4 trading days, and 23% in the last 12 month. Strong dollar is negative for exports. The Europeans are desperate to see their economy moving.
For us, I still believe the crack spread is the money maker. The gulf coast refineries that export distillate products will be hurt. ALDW does not export, too far from the gulf coast. If the dollar continue to strengthen what will happen to contango. My research shows that the crude oil March 2016 is $60 plus. The import crude oil at $60 is really $45 if the dollar is 25% higher. Should contango vanish, the discount at Cushing or the Gulf Coast will be favorable to ALDW.
Refineries live on the crack spread. ALDW is located in Big Spring, north of Austin. Early in the quarter (12 Jan 2015 through 13 March 2015) the crack spread was down to $4.40. At that time plenty storage was available on the gulf coast. Today contango is taking place, and the gulf coast storage is getting full. Contango is also taking place in Cushing, 2MMBbl since January. ALDW is well placed to buy crude; WTI or WTS at discount prices. I track the crack spread (3, 2, 1) today at $16.80 and for 2015, $11.42. ALDW crude discount has to bring ALDW crack spread around $20.00 or more.
My only concern with refineries, especially a single refinery is a shut down for a fire or whatever. ALDW is getting pricy; it is $2.04 from the 52 week high! With 57 days to Xdate, I expect volatility. ALDW is a very good MLP, I will wait to buy.
All right 600/mth what is mth? My numbers were taken from past IEVM articles. I assume they are still good. Long time ago I saw an add for a 5 USG bottle of Excelyte for $20 retail. I cannot find this add again. No one will show the price of Excelyte per USG or barrel or FT2. The K8 report to not show sale of Excelyte as yet!!
For every 995 gallon of water used 5 gallon of Excelyte is mixed with it. A fracking well uses at least 5 million gallons of water. 25,000 gallon of Excelyte is required x 106 wells, this add up to 2,650,000 gallon of Excelyte. Sound like IEVM is starting to be profitable? Cannot see 1 gallon of Excelyte delivered to the drilling site be less than $1.00 minimum. Any comment?
We are at the start of a new era. NG will become the leading energy. It will take time, but the green lobby will favor NG over crude oil. Not because they like NG, but because NG will meet the green lobby environmental requirements. I expect the transportation sector to go NG and crude oil to be out 70% to 80% within 10 years.
Bunker fuel will no longer be admitted by 2018. The Dual-Fuel is going to be DNG. NG cannot be ignited by pressurizing it. As the piston goes up in the cylinder, a very small amount of diesel is introduced. This diesel will under pressure ignite the NG. The NG can be LNG, LPG or CNG. The NG must be gaseous at atmospheric pressure to enter the cylinder.
My research shows that DNG will be used not only in the marine transportation, but also in the trucking and in the Rail Road locomotives. The demand for LNG and LPG is starting to be felt. I would guess that the fuel of choice will be the fuel with the biggest bang and the most economical. Small liquefaction trains are starting to be available and service station are becoming available on US main highway. We are entering a new petroleum business model.
The "irrational exuberance" in the crude oil pricing is over! That is what the Saudis have come to realized. Keeping crude oil prices as high is possible without causing an economic down turn is the incoherent way to make money, plenty money. $140 plus crude price is killing the goose. Petroleum has a competition, it is call green energy. Green energy is expensive, but political legislation and mass production of green products is starting to compete with crude oil and natural gas. The Saudis are out to compete with green energy, and crude oil prices in the $60 to $80 per barrel is the new price.
IEVM for years stayed in business by selling some of their shares. This was when they were only in hospital cleaning. Going O&G and especially H2S is the game changer. I bought last April when I read an article on Rig Zone, but IEVM has not really moved. In the O&G business it takes time to get your foot in the door. But result is the price to pay to be the one called to fix the problem. We are entering the problem solver, so IEVM is in, reputation will bring more customers. In 6 month we should be smiling! This new CEO is a welcome changer!
My past posting need no further testimony. The only comment I have with the IEVM CEO is that H2S smell like rotten yegg. You lose your sense of smell when the H2S concentration is beyond 5PPM. By 10PPM concentration you are a dead man or at least you are out and need quick medical help. H2S is a safety problems that you do not mess with. Yes corrosion is the other problem, but health and safety is first.