Sasol Limited (SSL)
Sasol Limited (SSL) is an integrated energy and chemical company. In terms of energy, think oil and gas. What’s interesting about Sasol though, is their work with coal gasification. Sure, it’s an old idea, (dating at least to WW II), but who else do you know who does it now? With oil prices low and dropping, it might not seem very interesting. With oil prices destined to rise, (I didn’t say when), and the massive coal reserves in the U.S., I can’t help but think Sasol may become very important in the future.
Sasol also produces a wide range of related fuels and chemical products. While I don’t believe these areas offer the same potential for explosive growth, I don’t these products are “going away” any time soon.
Currently Sasol is a stock you can buy for an almost 8% yield. Long term it may turn into a spectacular play on the peak oil concept and coal gasification. This new article in Kiplinger certainly supports that coal will be a big part of our energy future. Do you think Sasol will?