BenFranklin'sSpectacles + 762 SF March 16, 2020 In response to the corona virus, the feds have cut interest rates from 1.75% to 0.25%: https://www.axios.com/fed-cuts-interest-rates-zero-coronavirus-6bc5c3f0-16a4-4c18-8496-0493990a930a.html I can speak in detail about many technologies, but I know nothing about interest rates beyond, "Lower rates make projects more profitable." Would the more experienced members of this community comment on how this particular rate cut might affect the shale industry while oil prices are so low? Quote Share this post Link to post Share on other sites
0R0 + 6,251 March 16, 2020 Not much. The cost of capital for shale drillers are a large spread to the treasury and money rates. This is nearly rounding error. Where it "helps" is in lowering the interest cost of speculative storage of oil. Quote Share this post Link to post Share on other sites
Justin Hicks + 162 JH March 16, 2020 It won't It's like digging a hole and filling it with dirt from another hole. Quote Share this post Link to post Share on other sites