Any reason to fear an international gas producers cartel?

Michael Giberson Reuters reports from Moscow: MOSCOW — The world’s top gas exporting nations will set up a formal organization at a December summit in Moscow, a Russian official said on Wednesday, but denied the new body will seek to copy OPEC’s production quotas. “No one is planning to regulate gas production volumes. It is … More Any reason to fear an international gas producers cartel?More Any reason to fear an international gas producers cartel?

Happy Thanksgiving

Michael Giberson Thanksgiving Day should be remembered not just as a day when we give thanks for our abundance, but more deeply and historically why we have this abundance. In our Thanksgiving Day celebrations, let us therefore tell one another the true origins of the thanksgiving and the great economic lesson that the Pilgrims hoped … More Happy ThanksgivingMore Happy Thanksgiving

Worth further investigation: An unexpected drop in U.S. electricity consumption

Michael Giberson Rebecca Smith reports in the WSJ: An unexpected drop in U.S. electricity consumption has utility companies worried that the trend isn’t a byproduct of the economic downturn, and could reflect a permanent shift in consumption that will require sweeping change in their industry…. The data are early and incomplete, but if the trend … More Worth further investigation: An unexpected drop in U.S. electricity consumptionMore Worth further investigation: An unexpected drop in U.S. electricity consumption

More on wind power and negative prices

Michael Giberson Only after posting my earlier examination of the interaction of wind power, the production tax credit (PTC), and negative power prices in ERCOT did I discover a related analysis, “Curtailment, Negative Prices Symptomatic of Inadequate Transmission,” by Michael Goggin, an American Wind Energy Association analyst, that appeared in September at Renewable Energy World. … More More on wind power and negative pricesMore More on wind power and negative prices

Does hedging against fuel price movements increase airline value?

Michael Giberson Platts reports an airline financial analyst as telling an industry group that hedging fuel costs is a waste of time. The world’s airlines should stay away from trading oil derivatives and hedging in general because the exercise had proven to be “a waste of time,” the head of Asia transport research at Swiss … More Does hedging against fuel price movements increase airline value?More Does hedging against fuel price movements increase airline value?

Should all energy futures and derivatives contracts trade on regulated exchanges?

Michael Giberson If the energy-trading world were an iceberg, public markets like the New York Mercantile Exchange would be the exposed tip. The over-the-counter market would be the vast, hidden bulk. So begins a good overview of energy trading from the WSJ, “Talking about trades,” which actually reflects a passing understanding of the commercial world. … More Should all energy futures and derivatives contracts trade on regulated exchanges?More Should all energy futures and derivatives contracts trade on regulated exchanges?

Tuba Tuba Tuba!

Michael Giberson It is the sort of thing that makes me wish I lived nearer New Orleans and simultaneously wonder whether I’d ever get any work done if I did. From the WWOZ website: WWOZ broadcasts the second annual Tuba Tuba Tuba music festival featuring a 30-sousaphone second-line, live band performances, and street-corner ensembles. Performers … More Tuba Tuba Tuba!More Tuba Tuba Tuba!

Frequent negative power prices in the West region of ERCOT result from wasteful renewable power subsidies

Michael Giberson What is with all of the negative power prices in the West region of ERCOT? In the first half of 2008, prices were below zero nearly 20 percent of the time. During March, when negative prices were most frequent, prices were below zero about 33 percent of the time. After mostly taking the … More Frequent negative power prices in the West region of ERCOT result from wasteful renewable power subsidies

“Automakers must be allowed to fail if they are to succeed.”

Michael Giberson Chris Davis at Discovery News: Powrtalk: Automakers must be allowed to fail if they are to succeed. To date they’ve been supported just enough to muddle somewhere above the line of failure. But failure at least allows concrete recognition that the current model does not work. Creating the possibility for new models, new … More “Automakers must be allowed to fail if they are to succeed.”More “Automakers must be allowed to fail if they are to succeed.”

A subsidy-free policy for green energy and innovation

Lynne Kiesling Reason’s Shika Dalmia has been making some libertarian-friendly Cabinet recommendations, and in her discussion of possible candidates for Secretary of Energy, she reminds us of a great idea floated jointly by Ed Crate of the Cato Institute and Carl Pope of the Sierra Club a few years ago, in 2002: But there is … More A subsidy-free policy for green energy and innovationMore A subsidy-free policy for green energy and innovation