Hurricane Katrina could have a much bigger effect on the price of gasoline and natural gas than on the price of crude oil. Here’s why.
Category Archives: energy
Supply factors in the 2005 oil price surge
World oil production increased 4.2% during 2004, leading many analysts to conclude that demand increases, not supply disruptions, were the story behind last year’s rise in oil prices. As data for 2005 become available, I’m forced to conclude that the reason that oil prices have continued to surge above their values from 2004 is not further increases in demand, but rather concerns about the ability of supply to increase significantly above the 2004 levels.
Petroleum 101
If any of you ever had thoughts of drilling to see if you could find some oil, the Oil Drum has been running an excellent series on exactly how the physical process of drilling for oil works. Here are links to what’s been discussed so far.
The PR of PO
Sometimes discussions on both sides of the issue of PO (peak oil) look more like a PR (public relations) campaign than an open exchange of ideas.
Sweet and sour crude
Differences across grades of crude oil can tell us a lot about why oil prices have become so high.
Talk of recession
Nine out of the ten recessions in the United States since World War II were preceded by a spike in oil prices. Nevertheless, for the past year, I’ve been telling people that this time it’s going to be different– the economy could weather the rising price of oil without a downturn. Developments of the last couple of weeks make me a little more concerned.
More to the story on Chinese oil demand
As more facts come out about Chinese oil demand, the more fascinating the picture becomes.
Some comments on the Cambridge Energy analysis of future oil supplies
Most pundits had one of two reactions to the recent analysis by Cambridge Energy Research Associates about the prospects for global oil supplies over the next five to fifteen years. Some analysts took the CERA report as confirmation that concerns about peaking world oil production have been misplaced. Others dismissed the CERA findings as completely without merit. I would urge anyone who had either of these two reactions to take a second look at some of the issues.
Limitations of the Hirsch report on peak oil
Here’s a prime example of what I complain about in some of the discussions about how to deal with peak oil.
Peak oil for skeptical economists
I earlier
attempted to explain some basic economic perspectives on oil depletion to those who usually
think about the issue from the vantage point of other disciplines. Now I’d like to attempt the
no less perilous task of carrying water the other way across the street, describing to
economists who may find themselves skeptical of the claims made about “peak oil” what I regard
to be some useful insights from geologists and engineers to which some of us have perhaps paid
insufficient attention. As a skeptic and an economist myself, perhaps I’m qualified for that
mission.