What The U.S. Can Learn From Sasol

Some 90 miles southeast of Johannesburg, the cooling towers and pipes of a giant industrial installation sprawl across five square miles. What happens at Secunda, as the place is known, is of great interest these days. At a time of sky-high oil prices, Sasol Ltd. (SSL ), Secunda's owner, churns out 160,000 barrels of gasoline, diesel fuel, and jet fuel a day, enough to cover 28% of South Africa's needs, without using a single drop of crude oil, imported or otherwise.

Sasol is not a household name, but maybe it should be. President George W. Bush wants to curb America's dependence on Middle East oil. Analysts worry about a future gap between supplies and relentless demand. Yet Sasol, with $11.2 billion in revenues, is already enjoying huge commercial success in an arena that has eluded U.S. companies -- making fuel from coal. It is embarking on a program to brew clean-burning diesel from natural gas. It may even link up with coal producers in the U.S. heartland. "What is coming out of the U.S. makes us think there is a real business opportunity for us," says Sasol CEO Pat Davies.