Tuesday , August 4 2020
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Tag Archives: Energy

Guest Contribution: “Global financial markets and oil price shocks in real time”

Today, we are pleased to present a guest contribution written by Fabrizio Venditti (European Central Bank) and Giovanni Veronese (Banca d’Italia). The views expressed in this paper belong to the authors and are not necessarily shared by the Banca d’Italia and the European Central Bank. The oil market was one of the timeliest gauges of the effect of the Covid-19 shock on global activity. Between February and April 2020 the price of crude plummeted. Containment measures and travel bans...

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Negative oil prices

First negative interest rates, and now negative oil prices. Is the world coming to an end? The price of the May crude-oil futures contract closed yesterday at negative $37.63 a barrel. The buyer of that contract is entitled to receive 1000 barrels of oil in Cushing, Oklahoma in May and in addition the buyer is entitled to receive $37,630. Sound like a pretty good deal? A month ago there were around a half million such contracts outstanding, promising delivery of half a billion barrels of oil...

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Negative oil prices

A fun tidbit sent to me by a good friend in the money management industry.NYM WTI Crude oil is negative $37.73. They pay you to take it. The catch: you need an oil tanker and a place to park it. It went down from $-11.42 in the 10 minutes we were emailing about it. Update: From an email correspondent:Exchanges are very careful to match approved warehouse space with the production capacity of the region surrounding the delivery point.Warehousemen can do extremely well under conditions of...

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Off the Deep End: Navigating the Climate Crisis & Eco-Distress

No, it's not a joke, or the Babylon Bee, it's a real website at a real top university, which a number of readers of this blog have probably graduated from or donate money to.Dialogue Circle: Navigating the Climate Crisis The climate crisis has been impactful and many have turned to activism and supporting environmental justice movements. This is very meaningful work and can also create a sense of despair, burnout, anger, hopelessness, and other distressing emotions. CPS counselors will...

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Boot Camp

The Hoover Institution will host another "Policy Boot Camp" August 16-22. See here for details and how to apply. It's a one-week survey of serious policy analysis.The program includes  economists such as John Taylor, Ed Lazear, Amit Seru, Caroline Hoxby, Erik Hurst, and yours truly. Learn about international affairs from H.R. McMaster, Jim Mattis and  Condoleezza Rice. Niall Ferguson on Nationalism vs. Globalism and Bjorn Lomborg on climate should be worth it all on their...

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ND Oil v. WTI

A former student, who blogs at justadatageek.com, had a question about the connections between North Dakota oil prices and West Texas Intermediate crude prices. This was because of some of the distinctions between ND first purchase price and the Brent crude price. The integration between the North Dakota price and the WTI price seems similar. As it stands the relationship looks very similar to that with Brent. Clearly though there are differences and to take a further look I...

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Ferguson and the billionaires at Davos

In my last post, I commented on Joe Stiglitz view, heading to Davos, that billionaires and corporate leaders are anxious to pollute the air.  In my wealth tax series I reported on the popular view on the Warren Sanders Saez Zucman view that corporate leaders and billionaires represent a regressive right wing political force, that must be stopped by any means including expropriation of their wealth, even if that means destroying the businesses that make them rich.My colleague Niall...

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Climate clarity

The  carbon elephant in the room: (Data from EIA)In case "Asia and Oceania" vs. "North America" isn't clear  enough: Just why have China's carbon emissions risen  so much in the last decade?China  has been building  about one coal  fired  power  plant a week. China uses half again more energy than the US, to produce  $13.6 trillion vs. $20.5 trillion of GDP. That energy is strikingly weighted to coal (90 vs. 14  QBTU).Why does this fact...

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Bans on fracking and nuclear power

If you want evidence that climate policy has become unhinged from science and quantification, becoming more like a religious cult, look no further than the recent Democratic presidential candidates' proposals to ban fracking immediately and nuclear power soon.From Michael Cembalest at JP MorganI'm not a denier. Yes, carbon is a problem, warming is a problem, and a uniform carbon tax, vast expansion of nuclear energy, more renewables, lots of R&D on them, GMO foods, and geoenginnering are...

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