Quote from: RE on Feb 13, 2024, 05:43 PM

Quote from: TDoS on Feb 13, 2024, 03:31 PMOil prices look to have been assimilated pretty readily into the current economic conditions

If you consider exponentially increasing debt load to be assimilation everything is just peachy.

I don't borrow to buy liquid fuels, and increasing debt load at the US government level doesn't have much to do with fuel costs as much as entitlement programs.

Quote from: REIf drillers can borrow money they can't pay back to drill, then go BK and leave the bad loans to the banks and then the banks are bailed out by the government, you have a virtuous economic cycle!

No, you have shareholders and investors who lost their shirts. Drake borrowed money to finish his namesake well in America. ARCO bet the company on the development of Prudhoe Bay.
If you can't withstand what it takes to be or invest in the oil business...I recommend taking up knitting or something.

Quote from: RESorry Charlie, all that is happening here is kicking the can down the road a piece.  I'm living OK, but it costs $16K/mo for me to live in splendor.  This princely sum is paid by Medicare and Medicaid, which is being paid by debt financing.

So good thing debt financing is keeping you in okay shape. Worked out okay for WWII in the US as well, selling debt to citizens in the form of war bonds and such.

Quote from: RESo, if you are among the people who believe that deficits don't matter and you can live on credit forever then we have no problem at all.  I don't buy this economic bullshit.  You can beelieve whatever you want.
RE

Deficits and debt have been with the US how many decades/centuries now? I believe they matter. And I believe they didn't end the world in WWII with wartime borrowing any more than in the 70's when the US came off the gold standard or the various recessions across your working career or mine, etc etc, borrowing continuing all along the way. The history to date of debt or financing or how oil companies work and have worked for centuries doesn't require anyone's belief..it just is. That history includes oil companies and their investors paying the price for their screwups and whatnot. Those consequences haven't hit the government because they make the rules, and can change them along the way. No reason to think if pressure moounts enough, they'll chanage them again to their own advantage, and not the citizens. Citizens will ultimately pay for those bad decisions, one way or another. Oil company debt is irrelevant in the greater game, has always been there, will always be there. I recommend not investing in them, can't take the heat, stay out of the kitchen, etc etc.