Montana Mining and Exploration - 2008

Federal & State Resources / State Resources

Date posted: 02/20/10

2008 was a year of extremes. It started with high commodity prices, high operating costs, limited supplies and personnel, yet endless opportunities. Venture capital was seemingly unlimited. By the end of the second quarter, the money supply began to retract. Commodity prices remained strong but the costs of petroleum-derived products escalated in response to record oil prices. Diesel costs of over $4.00/ gallon and costs of over $90,000/tire on large trucks depressed the profit margins of many operations. In the fall oil prices began to decline, but commodity prices collapsed. The belt tightening started; small companies disappeared while larger companies trimmed staff and budgets to make ends meet.