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RE: CHS Coker Project Nearly Complete (Jan08)

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Thanks so much for the helpful and informative reply. I noted one particularly interesting part of your reply and wondered if you could explain a bit further. Is there a linear relationship between asphalt/fuel oil and gasoline prices as it relates to eithers coker value? Your example points out that asphalt/HSFO at +$250 would compete with gasoline at $2.70/gal. So say, gasoline jumps up to $3.50/gal, is it possible to predict the breakeven price for asphalt’s best alternative either into the rack market or coker? I guess I’m trying to determine some rough rule of thumb that says if gasoline is at price X, then asphalt is valued at Y into a coker or Z into wholesale market. Any help would be greatly appreciated.

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