why the ucg sector is flying...

It is not surprising that with fuel prices soaring, the US Military (the country's largest consumer of oil), is turning towards alternative fuels such as UCG.

In March of this year a B-1 Stealth Bomber (Code named: Dark-33) ran a high speed test above the sound barrier and Mach-1 using synthetic jet fuel derived from UCG.

Energy is now a major concern for the Pentagon and it is my opinion that we are currently seeing large overseas funds moving into the alternative fuel area resulting in a sharp sudden (& hopefully continued) price rise in LNC, MEE & CXY.

The US military consumes 340k barrels of oil per day, or 1.5% of all oil used in the USA. USAF's bill for jet fuel has tripled in the past 4 years and US defence forces have now tacked on a further US$2 billion surcharge for rising fuel costs.

The Pentagon are now pushing contractors like Boeing and Pratt & Whitney (makers of jet engines) to embrace synthetic fuels. The Pentagon also suggest that commercial scale 'synthetic fuel refineries' will be able to sell artificial fuel at around US$55/barrel.

The US Government are also now looking to assist companies in the US & overseas to get this technology commercially off the ground. USAF also want to purchase 400 million gallons of synthetic jet fuel per year by 2015. How mind blowing is that (lol)???

Accordingly, major airlines and engine manufacturers are now testing synthetic fuel on a 50/50 conventional jet/artificial jet which is JP8 @ 50% + Jet A-1 @ 50%.

A B-52 engine run exclusively on JP8 and has flown for 50 consecutive hours where Engineers detected no differences from conventional fuel.

USAF are also about to test Fighters such as the F-16 on alternative fuels, and the combined US defence forces will shortly test other transport as well.

So now the US military is on the UCG bandwagon, the commercial sector can't be far behind.

CXY has got a LOT of blue sky above it imo, in more ways than one!

Cheers, Pie :-)

NB: Some of the information noted above was sourced from the WSJ.