Transcript Document

The Saga of the US $ Dollar
McCloskey Petcoke Conference
Houston 2008
Carbon Products Company Inc.
John Carter
June 10, 2008
CPR
1
Carbon Products and Carbon
Processing & Reclamation
Carbon Products markets coking coals,
coal screening equipment, and petroleum
cokes to the steel, utility, and cement
industries via vessel, barge, and truck.
 Carbon Processing markets petroleum fuel
oils and fuel supply programs to steel,
utility, and heavy industry via vessel,
barge, truck, and rail.

June 10, 2008
CPR
2
Overview

Crude Oil prices and the US $, Euro.

Exports of Petcoke and US Coal.

US Federal Reserve monetary policy changes.

The shift from commodities to cash?
June 10, 2008
CPR
3
US $ relationship to Crude Oil and
the Euro - 2007 to current.
WTI Crude oil in $/bbl
and US $ price of Euro
$140.00
$1.65
C rude O il pric e
$130.00
$1.60
front nymex crude
$120.00
$1.55
dollar price of euro
$110.00
$1.50
$100.00
$1.45
$90.00
$1.40
$80.00
$1.35
$70.00
D ollar pric e of E uro
$1.30
$60.00
$50.00
$1.25
6/3/08
5/20/08
5/6/08
4/22/08
4/8/08
3/25/08
3/11/08
2/26/08
2/12/08
1/29/08
1/15/08
1/1/08
12/18/07
12/4/07
11/20/07
11/6/07
CPR
10/23/07
10/9/07
9/25/07
9/11/07
8/28/07
8/14/07
7/31/07
7/17/07
7/3/07
6/19/07
6/5/07
5/22/07
5/8/07
4/24/07
4/10/07
3/27/07
3/13/07
2/27/07
2/13/07
1/30/07
1/16/07
1/2/07
June 10, 2008
4
Why is the US Exporting Coal and
Petcoke?
Weak dollar, foreign buyers enjoy
incentives to buy US Goods.
 Ports struggle to meet market demand for
exports.
 All byproducts of refining process very
sought after for fuels or feedstocks.

June 10, 2008
CPR
5
How long will the US $ remain
weak vs foreign currency?
The US Federal Reserve increases
interest rates and slows the US economy.
 Real Estate prices will fall.
 Shift to next global trade opportunity, more
profits in cash, interests rates have to
move up.
 Organized slowing of growth of US
economy, reduced dependence on oil.

June 10, 2008
CPR
6
Summary

Crude oil prices drive US $ valuations.

US Ports struggle to meet demand for exports.

Energy values reaching a point where US
consumers are forced to change habits.

The dollar gets stronger with reduced oil
demand.
June 10, 2008
CPR
7