Money & Economics
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BREAKING: Oil executives warn US diesel prices will not return to normal for more than a year, with almost half of 100 oil and gas companies surveyed by the Dallas Fed now saying it will take more than four quarters to get back to 2025 levels, per the FT.
"Diesel is the mother's milk of the economy," one respondent says. "We are just starting to see the impact on the wider economy."
Chevron CEO Mike Wirth said two weeks ago that the Great Fuel Crisis executives had warned about has arrived and that the mechanisms mitigating price and supply risk have "largely now played out."
"Diesel is the mother's milk of the economy," one respondent says. "We are just starting to see the impact on the wider economy."
Chevron CEO Mike Wirth said two weeks ago that the Great Fuel Crisis executives had warned about has arrived and that the mechanisms mitigating price and supply risk have "largely now played out."
Washington Just Opened Public Land to 456 Nuclear Reactors
Washington Just Opened Public Land to 456 Nuclear Reactors<!-- --> | ZeroHedge
ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero
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A nuclear startup called Valar Atomics has applied to build what it calls Project Beehive on more than 9,500 acres of federal land near Price, Utah. The plan calls for 456 small nuclear reactors, a data center campus, a nuclear fuel fabrication plant, and on-site waste storage. NPR broke the story this morning.
.............Valar has never operated a commercial reactor. Its test unit only produced its first electricity this year. And yet when the company needed to move that reactor from California to Utah, it didn’t hire a truck. The U.S. Air Force flew it on a C-17.
........Four hundred and fifty-six reactors need fuel, and the specific fuel these reactors use requires uranium enriched to levels the United States barely produces. For most of the past two decades, America imported the bulk of its enriched uranium, with Russia supplying a large share of it until Congress banned those imports. Domestic enrichment capacity is a fraction of what a program this size needs. Every reactor on that Utah site, and every one of the thousands that would have to follow to hit the government’s 2050 target, is a claim on a uranium supply chain that doesn’t exist yet at scale.
That is where the next round of government money goes. Not into the data centers, which the hyperscalers can fund themselves, but into mining, conversion, enrichment, and fuel fabrication. It is the rare earths playbook applied to uranium, and it’s already started: the Department of Energy has been handing out enrichment contracts and loan guarantees for two years.
.........Here’s the thing to understand about a government that opens public land to 456 reactors, flies a startup’s hardware on Air Force jets, and rewrites the licensing rules to make it happen.
That government is not going to balance its budget. It is going to spend, borrow, and let the dollar absorb the difference. The bond market already knows it. That’s what a 5% 10-year Treasury yield during a Fed hiking cycle is telling you.