Rentech rains affect us all
Published 12:00 am Sunday, December 7, 2008
Dark clouds and silver linings have an interesting relationship.
It’s a little like the affair between trash and treasure.
Up until a few weeks ago, a dark cloud was looming over the heads of Americans in the form of extremely high fuel prices.
From the direct cost seen at the pump as gasoline flirted around the $4 per gallon mark to the indirect costs added onto to all sorts of goods as “fuel surcharges” the cloud of high oil costs rained on many a parade.
Lately, however, the price has plummeted, the dark clouds lifted for millions of consumers as gasoline prices dropped to the lowest prices in several years.
But just as the clouds lifted for consumers, the dark clouds blew over on top of the oil companies and even the alternative energy pioneers such as Rentech.
Most folks don’t have much sympathy for the oil companies, but locally, we have much hope riding on Rentech.
The company has plans to bring a coal-to-liquid fuel process to Adams County.
Unfortunately, at the current crude oil price, Rentech’s process doesn’t make economic sense. In other words, crude is cheaper.
That’s going to make it difficult to get investors to fund Rentech’s plans for the Natchez plant, unless, of course one of two things happens. Either crude prices must rise again soon or the government steps in and mandates use of domestically produces alternative fuels.
Both options are as unpredictable as figuring out when the next dark cloud is coming.