Rising Star
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When is next set of layoffs at EY??
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Let’s assume it is good for the US balance sheet… any net positive effect is trivial compared to the deficit.
The enterprise value is still UBER negative. What’s actually felt by everyday Americans is negative.
Where are you going with this?
Just for oil company only. However the entire global ecosystem suffers, so it’s bad for the whole economy
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At D1, please be joking.
This is a good question to ask AI. short answer, not really. Rise in oil revenue is mostly offset by increase in inflation and costs to transportation.
The oil majors would generally prefer stability in price and supply than uncertainty, especially when it comes to the ability to transport fuel safely overseas.
Not all oil and gas companies make money when price per barrel is up. Upstream or companies that extract oil from the ground can increase margin as price per barrel goes up. Downstream companies that refine oil can actually get squeezed on this spread as the cost of their supply goes up faster than the cost they can sell the refined product.
Also petroleum and its associated byproducts are used in everything, needed to transport goods including food from point a to point b and is core to everyday life.
Extended periods of increased costs drive up inflation because it will drive up the costs of most goods and services.
Landman is not a documentary. Great show, very entertaining and lots of valid messages (i.e dangers working in the Permian Basin, some fallacies of "green" energy costs and dependence on petroleum).....but it is also entertainment.
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Biden depleted the reserves remember
Its a short term profit in most cases for domestic reserves as well as O&G companies, because of the supply constraints mentioned above that ultimately squelch demand, export limitations placed on some countries make it impossible to sell it, and also the implications on the petrodollar. This has been our wildcard for sometime, as it forced majority of the world to trade USD for the one thing they need and strengthened our dollar/pushed inflation down as a byproduct . If Iran is able to regulate transport through Hormuz and start using the Petroyuan/get others to join, we will have shot ourselves in the foot
No and no and it pales in comparison to actual usage.
Interesting
This is not the right way to think about the pros and cons have high oil prices
Everything we buy, eat, wear, or use to build is moved via diesel a derivative of oil. And oil is the core chemical used for plastics. So the rise in oil prices flows through everything in the world economy. Literally everything. So no expensive oil is not good. This is why energy independence is critical for the US.
Good like tariffs are good. So, not good for us minions
Rising Star
But we are all shareholders. Tarrifs put the concern on better financial footing. So does oil prices going up. Sell high.
Expensive oil isn’t good for anyone, except opec and a select few in America.