Inspiration,
In reply to your post in the manner you politely requested (no abusive posts).
Your a long term investor and despite all you still own your shares, we all have this in common and would like to see value returned.
Can anyone comment on how you see this technology being implemented by an industry that is fast being forced to change and adopt a more environmentally friendly approach?
Unfortunately the energy industry is not changing very much at all, talking with one of the Authors of Australia's energy white paper, their policy values have always been that market forces will drive energy companies to innovate and take responsibility for things like their carbon footprint which is high, but that life long philosophical view is being seriously questioned and thoughts are moving towards the requirement of government to drive responsibilities.
Wind, wave,& solar energy is being heavily invested globally.
Yes the above get substantial investment, but oil production gets more on top of the current trillion dollar assets already in use, oil assets are still substancially growing.
In order for the AOT to be installed on pipelines, a huge investment will be needed, not only to buy the devices but also to install and service annually. This is very correct, but AOT purchases will be based off the ability to give a ROI within a designated time frame, I know a $10 billion dollar Australian company (not oil) that looks to get a 10% return on all new capital invested per annum, another company Caltex will only invest if they get 100% return in 24 months. Looking at the numbers for AOT, units sell for $1 mil per pressure vessel and the previous CEO said there was more than a 60% profit margin (or similar wording), butthe money AOT can save or generate makes me think they may actually be undervalued.
For the same investment, oil companies are now looking into longer term solutions and greener energies are being sought after. Oil companies will continue with oil, but one major change is underway, they are moving heavily into the retail business, buying building shops, calculating cost per square meter of shop and what services and products they can sell to get maximum benefit from there petrol stations. The primary product is refined oil for you and me but they are leveraging their retail offerings, leveraging their logistic networks. Don't be surprised if your local servo becomes the place you pick up your internet shopping from, camera systems recognize your number plate as you drive in your parcel is at the desk as you walk up and the staff member offers you a coffee as you like it.
Basically petrol is not going any time soon, business models are being developed to move well beyond the next decade.
Retro fitting pipeline is very viable, very cost effective, and worth doing.
One can easily get caught in the hype of everything must be green, but a big example is there is no energy source that can power airlines except oil.
If a green energy source was to seriously compete with oil, that would actually impact supply demand levels and reduce the cost of oil making it more competitive, it will be very hard to kill off the requirement of oil.
I won't debate the merrits of previous management, but I believe the previous management oversaw the development of AOT where it is ready to sell. The Board appointed a new CEO with a sales skill set in the oil industry, that CEO has then brought in some high capacity individuals to become part of a restructured board that now have a hands on approach.
I myself believe we have a product ready to sell, a very well connected team who can sell and the AOT is superior to current technology.
So for me the pendulum of probability of a sale is in the positive range more than it ever has been.
I can't predict a sale or timeline, but I think is is much more likely than unlikely.
I hope that is the type of dialog you were looking for, and I hope like me you will watch the AGM live on the internet.
Smile
Recent field tests with a crude oil pipeline fully confirm the theoretical results.
