- Less demand for hybrids as long as price is low.
- If price is low enough for enough time, increased demand for SUV's
- Increase in speed driven
- Increase in miles driven
- Reduction in alternate energy funding from private sources.
- Decrease in expenses for consumers.
- Political issues in countries that are not the friendliest to the US (USSR, Iran, etc).
- Possible impact on Iraq that may impact the US.
- Decrease in demand to drill offshore in the US.
- Decrease in drilling for new oil in the US
- Older fields may no longer be economical
- Decrease in looking for new fields
- Decrease in oil sands since no longer economical (break even I believe is $50, oil is around $40 right now).
- Increased demand for oil.
- Lowering of supply by Opec to increase price.
Saturday, December 13, 2008
Impact of Under $2 Gas
Some Guesses:
Friday, December 12, 2008
Oil Increase - More on why
Another explanation from the WSJ for the increase in October oil imports was due to Hurricane Damage in the Gulf that reduced refinery output in the gulf, increasing the demand for oil imports.
Thursday, December 11, 2008
Why did Oil imports increase?
Why have all the articles I have seen so far state that oil prices are down, US deficit is up because oil imports have increased in October, and the reason for the increase is?
Oh wait, here is one that explains it. Room for Second Guessing
The higher oil prices led to higher imports, as oil producers tried to take advantage of the price. Hence higher supply than demand, since the economic destruction in the US caused by higher oil prices was not seen.
Oh wait, here is one that explains it. Room for Second Guessing
The higher oil prices led to higher imports, as oil producers tried to take advantage of the price. Hence higher supply than demand, since the economic destruction in the US caused by higher oil prices was not seen.
Wednesday, December 10, 2008
Tariffs and Renewable Energy Requirements
Despite downturn, is German energy a model for Obama? from Reuters.
Germany is paying more for Solar energy, but the alternative is paying another country for cheaper energy. So there is some advantage on keeping the money in your own country. But, this makes me think of tariffs, and how those used to protect domestic industries. Is requiring a certain amount of power to be produced using renewable energies another form of tariff?
Theoretically, a company would be at a disadvantage by being required to pay higher energy costs because of a renewable requirement. The article does not answer the question is how much has the cost of energy for other users been increased? What are the above market rates?
Hybrids are a great example where if they don't make sense economically - ie high gas prices, most people won't buy them.
My opinion is since power companies in the US, or at least in California are regulated (ie the government decides how they will make a profit, that pushing solar to decrease the amount of money being sent out of the US makes sense in the long term.
I would like to see some analysis on if the increase in German demand for Solar has decreased the price of solar, or will it in the future? It has increased demand, which for a while increased prices, but theoritically this should be correcting itself with an increase in production. And with the increased production, this should have lowered costs due to economies of scale (the more you produce, the better you get at it, lowering the cost).
I found a chart of solar pricing including vs. electricity pricing. Basically in 2020 solar and what a consumer pays will be around the same! Only 12 years to go! Of course wind is pretty competitive now per the Economist Blowin' in the wind
Germany is paying more for Solar energy, but the alternative is paying another country for cheaper energy. So there is some advantage on keeping the money in your own country. But, this makes me think of tariffs, and how those used to protect domestic industries. Is requiring a certain amount of power to be produced using renewable energies another form of tariff?
Theoretically, a company would be at a disadvantage by being required to pay higher energy costs because of a renewable requirement. The article does not answer the question is how much has the cost of energy for other users been increased? What are the above market rates?
Hybrids are a great example where if they don't make sense economically - ie high gas prices, most people won't buy them.
My opinion is since power companies in the US, or at least in California are regulated (ie the government decides how they will make a profit, that pushing solar to decrease the amount of money being sent out of the US makes sense in the long term.
I would like to see some analysis on if the increase in German demand for Solar has decreased the price of solar, or will it in the future? It has increased demand, which for a while increased prices, but theoritically this should be correcting itself with an increase in production. And with the increased production, this should have lowered costs due to economies of scale (the more you produce, the better you get at it, lowering the cost).
I found a chart of solar pricing including vs. electricity pricing. Basically in 2020 solar and what a consumer pays will be around the same! Only 12 years to go! Of course wind is pretty competitive now per the Economist Blowin' in the wind
Tuesday, December 9, 2008
Back at Junk Value, Recyclables Are Piling Up
Back at Junk Value, Recyclables Are Piling Up from the NY Times. Basically the current poor economy has reduced the value of recycled material, which is causing problems for recyclers.
Monday, December 8, 2008
Gas - $1.69 last night at Costco
I am just amazed by the drop in Gas, basically 2/3rd's cheaper than just a few months ago when near $5.00. Good news is this is helping people's pocket books. Bad news is it's making that SUV cost less to operate, so people may not put a premium on a fuel efficient car, such as a Prius.
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