From the Fuel Desk
This past year has been a challenge for all of us in our everyday lives. From higher prices to supply interruptions and the diminished labor force. Fortunately for those of us living in rural America we are resilient and can always find a solution to every problem. For many of us over the years the price of the product was our main concern, and we never gave any thought to the fact that we couldn’t find the product. Today supply has become the main concern for many of us and unfortunately there is not a clear end in sight.
On a brighter note your Frontier energy team has worked very hard preparing for the supply interruption and in most cases is very well supplied with products. We have built some new relationships with suppliers to ensure that we can cover your energy needs. I would however recommend that our producers plan for shortages and keep your fuel, oil, and DEF tanks on the top end, and we will do our best to make sure the product is available for you.
Other than supply the next greatest challenge of late has been the cost of fuel. We were very fortunate the last year and a half to see some of the lowest prices in recent years but this winter crude prices started to rise, and we have seen very little relief since. Rising demand worldwide and lack of production in the previous 18 months has created the perfect storm in the energy markets. Add in the tensions between Russia and the Ukraine and we find ourselves at 8–10-year highs in crude oil. What will be the fix to these prices? Production worldwide is starting to ramp up unfortunately it takes time for this new crude to reach the market but as it does this will ease the commodity prices. If the tensions with Russia can be resolved, we should see a dramatic pull-back in the markets. The big question is when this will happen and who will be involved before it does.
Your energy team has always been focused on trying to make your operation run as smoothly as possible and provide you will quality products and service. We would love the opportunity to visit with you about your operation and any needs that you might have. Thank you for your business that past year and we look forward to working with you in the future.
Thank you for your business and Frontier Ag appreciates your continued support.
Fuel – Providing Your Fuel Needs ON and OFF the Farm
Frontier Ag, Inc is pleased to provide Cenex premium diesel and gas to our customers through our cardtrol locations or delivered to you in one of our delivery trucks. Frontier Ag, Inc is also pleased to offer Cenex quality lubricants at all our locations.
Jason Dinkel – Petroleum Division Manager