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central mich |
I believe the President of Exxon said about a week ago that oil will prob go to $160 before year end. And I have said that for months. I said $150-$200 before the CEO made his comment. The fact is the wave of destruction of the large production
sites in the ME has not began to pass through in my opinion. The peak on that massive event would take many months and most likely years. There are shut in gas wells in the ME that will never recover as one water starts to come in a well it is difficult to stop the water. If oil wells they may become stripper wells.
We lease out all of our irrigated ground only farm/interest about 800 acres and I rent out my mothers estate as well. But here are three companies that do use some diesel. One company we work with bought 200,000 gallons last year in advance. Another company just bought 800,000 gallons of diesel about a month ago. And another friend locks into construction contracts in advance each year. He stopped the other night and said he will very likely lose $1,000,000 this year if diesel does not come down as he is locked into the contracts with no escalator etc. I usually get a load of equipment out of Florida every two weeks and I have paid $3000 for 1400 miles. Now I have to pay $3500 as they buy their fuel on the road. I have 8000 and 12,000 tanks here but have not filled them recently. We have 5 1000 gallon tanks and we usually have 4000 gallon. With one on road. But we are going to deplete all of our fuel and then just buy what we need. We mo tilled all 500 acres of beans this year.
One of our full off road 1000 gallon tanks we paid 93 cents for it a few years ago as we had our 5 1000 gallon tanks filled at $.88-93 at that time.
Everybody's situation is different.
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So should I top off my Diesel tanks or not?
