John&Joey wrote:
Other than maybe a train coming, I can’t see a light at the end of the tunnel. With no new drilling, federal reserve being tapped on already, sanctions in place, where can fuel costs go? No silver bullet is making an appearance that I know of.
Next week the Federal Reserve starts their interest rate hikes. Getting a RV loan will get more expensive and will continue too. Guessing the blush will come off the new RV bloom fairly fast now that easy money is going away.
Last time the cost of fuel was raised by greedy commodities investors that didn’t need to take delivery of it. Buying and selling driving up the price. This time it could stay up there for a long time by those same commodities investors.
Not sure where the "no new drilling" keeps coming from. There is drilling going on and at an increased rate in the Bakken Field and the Permium basin. Now both of those are Fracked drilling locations so you need to keep drilling since the wells output drops off pretty fast.
But "NO NEW DRILLING" IS ABSOLUTELY FALSE. And they are turning back on wells in the Bakken field since this time last year. While oil has about doubled since this time last year, our royalty checks have risen by 16x One field that was pumping less than 1,000 barrels/month this time last year is now pumping close to 8,000 barrels/month. That well field is quite old, been pumping oil since 1960, but is still producing. It's just expensive to extract, lots of salt water, deep wells and not much pressure so it takes big pumps and lots of power.
One problem is that the Bakken field will be pretty tapped out in a decade or less. Almost all the large producing areas have wells, they are just filling in on open spots, and the wells output drops fast. So it may hold flat output or maybe rise some for the next 5+ years, but then it will drop off pretty rapidly.
