Wondering where the inflationary impact of The Fed's massive monetary policy experiment is leaking out (aside from stock prices)... Look no further...
What happens when too much cheap money chases a limited asset? Just like housing, 'cost' of Shale Oil wells have become about the monthly nut, not the all-in as The Fed-fueled pump focuses everyone on the short-term gains (ignorant of long-term pains). As the following chart shows, this credit-fueled exuberance has inflated basic costs for US oil producers dramatically...
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...and with their costs of funding exploding higher, the vicious circle of higher costs and lower revenues for these levered firms is spinning faster and faster.
h/t @RudyHavenstein
