03 May 2010 18:25 [Source: ICIS news]
HOUSTON (ICIS news)--Shares of Illinois-based Nalco soared to a three-year high on Monday as the company's chief executive revealed his firm's dispersant was being used on the massive oil spill in the Gulf of Mexico.
Nalco, which makes a dispersant named Corexit containing propylene glycol that would help break up the oil, jumped by 18% to $29.25 in mid-morning trading on the New York Stock Exchange, hitting its highest point since October 2007.
Trading spiked when Nalco CEO Erik Fyrwald appeared on the CNBC television network and said his firm was working with BP to inject one of its proprietary chemicals near the wellhead on the ocean floor as well as on the oil at the surface.
The chemical breaks down oil into small parts that can be eaten and dissolved by naturally occurring bacteria, Fyrwald said.
Nalco spokesman Charlie Pajor told ICIS last week that the company was ramping up production of Corexit for its use on the spill.
Since BP's Deepwater Horizon rig exploded and sank last month, killing 11 workers, hundreds of thousands of gallons of crude have gushed into the Gulf from the ocean floor, with no quick or easy solution.
Drilling another well to offset the out-of-control gusher could take three months, officials said.
Containment and clean-up efforts have yet to ignite monopropylene glycol (MPG) demand, a producer said on Monday. However, were the spill to continue for many weeks, and if detergents and dispersants become widely used on it, a boost to demand was likely, the producer said, adding that the incident was still a major misfortune.
“That’s not a good way to have a possible rise in business,” the producer said.
($1 = €0.75)
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