green econometrics

Despite the global economic recession, preliminary data suggest oil demand remains rather resilient. According to the latest reported information from the Energy Information Administration (EIA), Global Petroleum Consumption is down one percent y/y in 2008 while China and India show increases of 4% and 5%, respectively. However, current data through September [...]

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The development of an energy efficiency strategy incorporates analysis of energy expenditures and energy consumption. The energy strategy must incorporate dynamics between costs, budgets and the consumption of energy including the monitoring of kilowatt-hours (KWH) of electricity and liquid hydrocarbon fuels consumed. By analyzing both the financial and the energy consumption components we [...]

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The fall in oil consumption was most dramatic following the escalating price of crude oil to $145.16 per barrel on July 14, 2008 then at any other point over the last several years. Price elasticity, a key concept in Economics 101, which measures the impact of price change to changes in unit [...]

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Last month First Solar (FSLR) achieved a milestone in the solar industry with its announcement of $1 per Watt reducing its production cost for solar modules to 98 cents per watt, thereby braking the $1 per watt price barrier.. While the achievement is great news for the solar industry some studies suggest [...]

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America’s appetite for oil declined sharply as the economy weakened over 2008. According to the latest reported information from the Energy Information Administration (EIA), Monthly Oil Consumption oil consumption declined 13% y/y from September 2007 through September 2008.
Historically, the US has seen this type of demand erosion before. From [...]

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To understand current energy prices it may serve us to examine historical energy prices. Our theme is energy economics and specifically that energy prices follow the laws of supply and demand to set pricing.
There are some interesting perspectives on historical energy prices from several books including Security Analysis, 1940 edition by Benjamin Graham and [...]

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The precipitous drop in oil prices may not hold for long. Speculators and fears of oil flow disruptions drove oil prices to an all time high of $145.16 on July 14, 2008 and is now down to $49.50 in November 20, 2008. Now the fear has shifted to the economy where deteriorating [...]

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Access to energy was instrumental fueling the Industrial Revolution. Over the last 200 years, industrial nations have migrated from wood to coal and now to oil as a source of energy. During the 1700’s, wood was used for just about everything from fuel to constructing houses and building wagons and even tools. [...]

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Using the latest data from the Energy Information Administration (EIA) , oil production remains significantly below historical levels achieved in ‘70’s and ‘80’s. The peak production in 1970 has not been replicated despite significant expansion of drilling activity during the 1980’s.
Oil Drilling and Production
Figure 1 Oil Drilling and Production
Figure 1 [...]

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As energy and food prices set new world records, what can we do at home to avert the crisis? Food prices are rising because corn is diverted from food production to producing ethanol for use as fuel in motor vehicles and is exacerbated by the recent flooding in the Mid West. Oil [...]

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The question of Peak Oil, first proposed by Dr. M. King Hubbert can best be illustrated by analyzing the supply and demand for oil. With use of statistics complied by Energy Information Administration (EIA) , the tenuous position our energy needs becomes more apparent. Let’s examine the latest data from [...]

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Oil continues to trade above $100 per barrel with the NYMEX CRUDE FUTURE closing at $101.84 on the last day of February 2008 and the US House of Representative passes legislation to raise $18 billion in new taxes for Big Oil to foster development of alternative energies. While President [...]

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World oil demand continues to rise despite efforts to limit demand. Renewable energies such as solar and wind have the potential to limit our dependence on hydrocarbon fuels, but one issue remains prominent - storing energy. While the sun provides radiation for solar and generates wind, when its cloudy or dark we are [...]

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From the Industrial Revolution we learned that economic growth is inextricably linked to energy and as a result, our future is dependent upon equitable access to energy. When the Stourbridge Lion made entry as the first American steam locomotive in 1829 it was used to transport Anthracite coal mined in nearby Carbondale, PA to [...]

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Ethanol may emit less CO2 and help reduce the demand for foreign oil in the short term, but ethanol and in particular, corn-based ethanol raises food prices, is less efficient than gasoline, diesel, and biodiesel, and is not a substitute for oil.
According to research compiled by National Geographic Magazine , the energy balance of [...]

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Rising oil prices have driven exploration and drilling activity, yet oil production remains anemic in comparison. Could the latest data suggest oil production is nearing a peak? With global demand expected to rise over 30% by 2030 according to a recent article in the Wall Street Journal, Handicapping the Environmental Gold Rush [...]

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Despite efforts that have enabled the U.S. to limit its demand for oil, world oil demand is up significantly. Advances in technology such as solar energy and vehicle fuel cell could help the world reduce its dependence on oil.
Figure 1 Oil and Gold Prices

The U.S. Department of Energy (DOE) and the [...]

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