Michael Giberson Robert McCullough, the “analyst known for his work with a Washington utility trying to prove that Enron manipulated power markets” (in the words of Newswatch: Energy), is back in the news with a report sure to appeal to the economically naive in Congress and elsewhere. In his report McCullough concludes, “All available evidence …
Is Market Concentration to Blame for Record High Oil Prices? Read More »
Michael Giberson Holman Jenkins makes another good point in his WSJ column on energy (in addition to his conclusion, which I cited in an earlier post). He points out in response to Boone Pickens’s concern over the “transfer of wealth” to foreign oil producers: [Pickens] says we spend $700 billion a year on foreign oil, …
Michael Giberson Holman Jenkins’s editorial on energy in yesterday’s WSJ seems to take the right approach: [W]e can’t drill our way out of the dilemmas of living in the world. But drilling is one of many things we can do that are worth doing. Over time, the price mechanism and technology will tell us how …
Energy is Not Scarce: Comment on Wilkinson on the Sustainability of Economic Growth Read More »
Lynne Kiesling I think Tyler is answering a different question than DSN asked, and I think he’s made it too hard. DSN asked Based on logic and observation of input cost and profit trends in various industries, when the cost of raw materials rise, companies in a competitive market are often not able to pass …
Lynne Kiesling On July 8, 2008, Synapse Energy Economics released a report titled “Advanced Metering Infrastructure — Implications for Residential Customers in New Jersey“, commissioned by the New Jersey Department of Public Advocate. The report’s primary focus is an analysis of the cost-effectiveness of investments in Advanced Metering Infrastructure (AMI) from their definition of the …
Lynne Kiesling Randall Parker has a post noting that in May 2008, vehicle miles traveled in the U.S. fell 3.7% relative to May 2007. Not surprising, given that prices have risen by about, say 37% (giving us an estimated price elasticity of demand of -0.1, which is higher than normally seen, so yes, we have …
How Long Can Some Countries Continue Suppressing Gasoline Prices? Read More »
Michael Giberson Usually, retail gasoline prices do go up faster than they fall. Martha White, in Slate’s Explainer column, explains: Analyses of gasoline economics show that when the price of oil rises, it takes up to four weeks for gas station prices to catch up, with most of the increase taking place within the first …
Do Retail Gasoline Prices Go Up Faster Than They Come Down? Read More »
Lynne Kiesling At The Energy Collective, Geoff Styles discusses Andy Grove’s energy resilience ideas that I mentioned on Monday. His conclusion: The approach suggested by Dr. Grove has many advantages, and the most important is avoiding the trap of becoming overly reliant on any one source of primary energy, imported or domestic, in the future. …
Lynne Kiesling Andy Grove, former CEO of Intel, has an interesting article in The American magazine this month entitled “Our Electric Future”. Grove argues that energy independence is a flawed and infeasible objective, particularly in a network of integrated global exchange. He suggests instead that the objective should be energy resilience: What was wrong with …
Andy Grove: Energy Resilience, Not Energy Independence Read More »
Michael Giberson The “wild assertions about speculation and manipulation are defective and completely unsupported by reliable evidence,” said Craig Pirrong, writing in the WSJ about congressional proposals to scapegoat speculator participation in oil futures trading. Restricting these speculators won’t reduce the price of oil — but they are likely to make consumers and investors worse …
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