By Monday, oil and gasoline futures prices had given up all of the gain they’d experienced since Katrina. Today we learned that U.S. gasoline demand has plummeted. Both developments were pretty surprising, but are surely related.
Monthly Archives: September 2005
Energy theory of value
Perhaps no statement by economists causes physical scientists more aggravation than the claim that the economic importance of energy can be measured by its dollar share in total GDP. Here I explore some of the arguments for both sides of that claim.
Hurricane? What hurricane?
Amazingly, gasoline futures on the New York Mercantile Exchange today ended back where they were before Hurricane Katrina struck with all its fury. Retail prices will likely follow that lead. But what about the Fed?
The question about refining
Has environmental regulation been responsible for leaving the U.S. with inadequate gasoline refining capacity? The story is not as simple as some have suggested.
Proposition 77
It is my intention occasionally to offer thoughts about some of the propositions on which Californians will be asked to vote this November and provide a forum for discussion of the issues. Today I take up Proposition 77, the redistricting initiative.
Gasoline taxes revisited
Kudos to Bryan Caplan of Econlog, Victor of
Dead Parrot Society, and the Governor of Georgia for proving wrong my conjecture that lowering gasoline taxes in the present environment would not result in cost savings for consumers.
On the nature of economic recessions
What exactly happens in an economic recession, and how much has Katrina increased the likelihood of one developing?
The calm after the storm
Time to assess the storm damage. From an economic point of view, it looks costly, but manageable.
New information on the Cambridge Energy analysis of world oil supplies
I earlier expressed concern (here and here) that insufficient details about the analysis of near-term oil supply prospects by
Cambridge Energy Research Associates had been released to allow outside observers an opportunity to evaluate objectively the basis for their conclusions. The Oil Drum notes that these details are now available from CERA. My impression from examining these is that CERA has good reasons for expecting significant oil production increases over the near term.
Lockyer to the rescue
I’m starting to think that every day some politician is going to come up with a new idea for how to make the current gas situation worse. California’s Attorney General provides today’s illustration.