Jet Fuel from Coal

I had the opportunity to see David Neeleman, the founder and CEO of Jetblue, on C-SPAN this past weekend. He was talking about what is needed to make the investment in converting coal into liquid fuels. He stated that money to do these projects is not an issue, many corporations can do it and be profitable. Oil needs to stay above $40 per barrel, according to Neeleman, in order for the companies to remain profitable.

With us unlikely to see oil drop below $40 per barrel in the foreseeable future, now is the time of the Economic Development in Authorities in the Potomac Highlands to move. The less likely a drop in oil, the more likely an investment will be made in a CTL (coal-to-liquid) plant. David Neeleman is showing that the airline industry is willing to take a look at CTL. The airline industries single biggest variable in cost is fuel. In 2005 Sir Richard Branson owner of Virgin Atlantic Air announced that he was going to build an oil refinery just to supply fuel for his airline.

The airline industry offers an opportunity that the Potomac Highlands should be capitalizing on. Now is the time for our Economic Development Authorities to contact people like Richard Brason, David Neeleman and ask them to look at a joint venture plant. We can bring together the end users of Jet Fuel, and the producers of coal such as Massey Energy and make a CTL plant a reality. We may not be able to put something together, but we know for sure nothing will happen if we don't try.

Even if Virgin Atlantic builds its own oil refinery, it is still tied to the volatility of oil prices, and the political instability of the middle east. West Virginia offers a large supply of coal, and a stable political climate. This will make sure the idea of a venture will be more appealing. West Virgina has a the resources, so we should be an economic powerhouse of a state. The only thing lacking is a political will to move forward.