allanh comments please, page-13

South Africa has 2 facilities currently operating, Sasol 1 and Sasol 2/3 producing synthetic fuel from coal. These are profitable and currently being expanded.

Martin Fergueson just gave a speech about coal to liquids conversion. Parts of the Labor Party are at least open to considering such an option.

http://www.abc.net.au/news/stories/2008/06/05/2266215.htm

This will all lead to concerns about global warming against concerns of oil supplies and balance of payments.

There are also gas-to-liquids; tar sands to liquids; heavy oil to liquids; shale to liquids that with oil longterm >$80/bbl will be economically viable. At the moment Tristone Capital who many banks use for their oil price forecasts for loans have a long term oil price of apprx $75/bbl.