Colver Technologies says that a glut in the supply of cheap oil is adversely impacting upon capital expenditure plans in the broader GTL market.
Colver Technologies has issued guidance for the coming year that, while positive, warns of the impact the glut in supply of crude oil will have on the broader GTL market. The company says that, while its small-scale reactor business streams is still buoyant, major energy companies’ plans for large-scale facilities are increasingly being postponed or cancelled altogether.
“There’s no sugar-coating this dynamic,” said Gus Stuyvesant, Chief Operating Officer at Colver Technologies speaking at an energy summit in Boao, China. “The whole rationale for GTL, CTL (coal-to-liquids) and other alternative fuels was that they represented a way of keeping the price of energy manageable. A 50% cut in the price of conventionally-produced oil makes the need for alternatives less pressing; it’s as simple as that.”
The warning came after a spate of statements from major and mid-sized energy producers announcing postponement or abandonment of plans to construct large-scale GTL facilities on the North American continent including an $11 billion project by South African major, SASOL.
“We should expect to see fallout from this repositioning and cost-cutting continue over the next 6 months. Right now, most of the news centers on the investment aspect of the issue but we expect to see focus shift onto the human side as tens of thousands of jobs are lost industry-wide,” said Stuyvesant.
Colver Technologies said that its revenues continue to show strong growth as it increases sales to shale producers looking to diversify in order to generate additional revenue from the millions of cubic feet of natural gas byproduct they usually burn off into the atmosphere.
About Colver Technologies
Colver Technologies’ modular GTL systems revolve around the Fischer-Tropsch reactor, a conversion technology developed in the 1920s by Franz Fischer and Hans Tropsche in Germany in 1925. It facilitates the production of significantly cleaner-burning liquid fuels like diesel and jet fuel from natural gas that contains no sulfur. We are committed to doing our part to drive uptake of GTL fuels as global efforts to reduce emissions increase and have invested heavily to ensure the continuing development of this highly attractive alternative to conventional energy production.
Contact Colver Technologies:
Longzhimeng Asia-Pacific Center
22 Pangjiang Street
Dadong, Shenyang, Liaoning