Gas Exporting Countries Forum wants higher output and higher prices

Michael Giberson The Gas Exporting Countries Forum is meeting in Qatar. From a few news stories I gather they want to boost output and obtain higher prices, and they don’t want to issue quotas or be a cartel. My thought is that, unless they’ve discovered an end-run around basic economic principles, they will be unsuccessful in … More Gas Exporting Countries Forum wants higher output and higher prices

California regulators approve generous contract to multinational corporation at California ratepayer expense

Michael Giberson Discovering that renewable power mandates can be expensive, California-style: “California Approves Solar Contract Despite High Cost“: Ultimately, the commissioners voted for Abengoa’s contract mainly because Abengoa already has spent five years and $70 million to develop Mojave Solar and has gotten all the permits and financing to start construction. They noted that getting … More California regulators approve generous contract to multinational corporation at California ratepayer expense

Hotelling takedown

Michael Giberson One of the classics of resource economics is Harold Hotelling’s “The economics of exhaustible resources,” Journal of Political Economy (1931). The article gave us what is now called “Hotelling’s rule,” which links resource prices and extraction rates for resources in finite supply. The article was simple, logical, and pathbreaking. It also, by the … More Hotelling takedown

Pipelines and politics, or “Flow my tears, but not in a pipeline crossing U.S. borders because we’ll never get the permit approved at the State Department”

Michael Giberson A few days ago, Geoffrey Styles was assessing the potential role of energy issues in the 2012 U.S. presidential election: Even though $4 gasoline was still fresh in the minds of voters, energy played only a minor role in the outcome of the 2008 election, overshadowed by two wars and a crippling financial crisis. Will … More Pipelines and politics, or “Flow my tears, but not in a pipeline crossing U.S. borders because we’ll never get the permit approved at the State Department”

Massachusetts observes that green power mandates may be raising consumer costs

Michael Giberson Let’s just say when the best example of a success story is a long-term contract signed by a utility and the Cape Wind project, you haven’t exactly resolved concerns about the practicality or cost-effectiveness of the law. From the Boston Herald, “AG: Energy costs rising under Mass. renewables law“: The Green Communities Act, … More Massachusetts observes that green power mandates may be raising consumer costs

Paul Krugman comments on hydraulic fracturing and solar power

Michael Giberson Paul Krugman commented on hydraulic fracturing for natural gas and on solar energy the other day. His main thrust is the good news he finds on solar energy, but he detours into a few comments on fracking to generate a charge of political hypocrisy. Fracking is, he says, “a technology that imposes large costs … More Paul Krugman comments on hydraulic fracturing and solar power