Middle East

[CowboyJD]

As it turns out, its not just the goons that are good at gymnastics.

"If you're actual takeaway is that Trump is going to commit nuclear genocide against the Iranian people, well, you're a moron."

What if your takeaway is that Trump is threatening conventional weapon genocide against the Iranian people, Layne?

 

[CowboyJD]

Everyone keeps mentioning gas, but the real pain I have seen is diesel. The price of diesel in Stillwater was $4.54 yesterday. It has gone up exponentially faster than gas.
Will make baling hay in a few months expensive as hell.

Already making goods transportation by the trucking industry expensive as hell.

 

[TheMonkey]

Already making goods transportation by the trucking industry expensive as hell.

This. I’m sure hay prices are an issue, but practically all consumer goods are also shipped via diesel engines, right?

 

[cowboyinexile]

This. I’m sure hay prices are an issue, but practically all consumer goods are also shipped via diesel engines, right?

Yep. Everything that's transported via semi (so pretty much everything) will be more expensive as higher fuel prices will force carriers to charge more for freight.

 

[HacklemanPoke]

Already making goods transportation by the trucking industry expensive as hell.

The unintended consequence will be that pice per bbl shock is all in the front. One year out we’re back under $70/bbl. 2 yrs out below mid $60’s. Producers won’t hedge at this level maybe a small fraction. But this price curve is too short loaded to drive rigs back into the field.

What the curve will do is it will serve to reduce demand for oil. This will further weaken the curve and keep capital from being put back into the drill bit. They’ll use increased cash flow from short term price spikei to pay down debt.

This is not what this economy needed right now.

 

[TheMonkey]

The unintended consequence will be that pice per bbl shock is all in the front. One year out we’re back under $70/bbl. 2 yrs out below mid $60’s. Producers won’t hedge at this level maybe a small fraction. But this price curve is too short loaded to drive rigs back into the field.

What the curve will do is it will serve to reduce demand for oil. This will further weaken the curve and keep capital from being put back into the drill bit. They’ll use increased cash flow from short term price spikei to pay down debt.

This is not what this economy needed right now.

After what happened with the fracking boom and bust, E&P learned their lesson. They were losing money on every barrel sold.