Look toward gasoline prices (and a few other things).
Category Archives: energy
Inferring Economic Activity from Gasoline Use?
If so, consider the gasoline intensity of GDP:
Gasoline and Oil Price, through August 1st
Inflation, Gasoline, Recession
I was on WPR’s Central Time today, discussing among other things: “Gas and oil prices are starting to come back down. We explore what that means for inflation and fears of a recession.”
Battery Storage Costs for Utilities
(Or…, are renewables useless because of peak load issues?) From IPCC AR6 Working Group 3 report (page 6-24):
Texas: Peak Load Use and Renewables
In response to the post on the causes of the Winter 2021 energy debacle in Texas, reader Corev confidently asserts:
Solar can never supply the power needed during peak demand. Peak demand occurs as the Sun diminishes.
Always useful to look at actual data. Here is a picture of peak load use in Texas on June 13th, 2022:
Source: Fox7Austin.
Peak use was at 6pm CST.
Sunset in Houston on June 13th was 8:23pm CST.
Of course, the entire point of the post was how renewables (including wind) were mitigating, not exacerbating, the difficulties Texas was encountering in meeting demand. Renewables includes wind, and wind accounts the great bulk of renewables energy production in Texas.
This is not to say that there are no problems with reliance on renewables; as pointed out in the Dallas Fed article, greater ability to transmit electricity (i.e., making the electricity generation more tradable, in essence) and greater battery storage capacity (which is coming) are going to be essential to meeting greater and more variable demand as climate change continues.
In the meantime, keep a watch out for utter failures of fact peddled by purveyors of disinformation.
Texas Electricity Generation in Crises
Gasoline Prices Continue to Fall
Why is no mystery:
The Relative Price of Gasoline, thru 7/4/2022
Using core CPI, Cleveland Fed nowcasts for June, July, as of 7/7.
Gasoline Prices Today and (Maybe) Tomorrow
Assuming futures contract prices for gasoline are useful predictors for future gasoline prices: