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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 413.19+1.1%Jan 6 4:00 PM EST
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To: Maurice Winn who wrote (135420)9/4/2017 3:12:40 AM
From: Elroy Jetson   of 219056
 
Oil exploration, production and transport projects are almost exclusively funded with loans issued in Dollars or Euros and repayable in Dollars or Euros.

If banks issued loans for oil and gas development in bars of aluminum or bushels of wheat, and repayable only in bars of aluminum or bushels of wheat, there'd be a reason to ask for payment in the form of aluminum ingots when selling oil and gas.

As it is it's risky enough to assume the future price of oil and gas 25 years from now when you consider making an investment in a new source of oil and gas production.

Trying to guess the future price of oil and gas in terms of aluminum bars or bushels of wheat when considering investing in a new gas field would be a useless game for bored fools - particularly given that the bonds and loans need to be repaid in Dollars or Euros.
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