US power markets are in the spotlight amid a flurry of power plant retirements and subsequent efforts by various forces to keep them afloat. Some market watchers suggest the shifts in market structure, resource mixes and policy sets should come as no surprise – and that perhaps the country’s experiment with competitive wholesale markets should be abandoned – while others believe that power markets will persevere and even expand.
Posts tagged ‘economics’
 
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October 2, 2017 17:34 UTC 
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The US biodiesel industry just can’t seem to catch a break. Already plagued by poor blending economics – despite recent improvements brought on by rising ULSD costs – that have stymied the market, the industry now faces a possible drop in demand thanks to the feds. |
 
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July 21, 2017 05:01 UTC
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There are many contributing factors that are causing US oil prices to remain suppressed. Part of the reason is that petroleum inventories are not declining as quickly as some market participants had expected. Also, there are concerns that persistent production growth in the US will delay the market’s ability to balance. Additionally, production has rebounded in Libya and Nigeria, which has offset some of the efficacy of the OPEC-led production cut. |
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June 9, 2017 09:00 UTC
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UK Prime Minister Theresa May went to the country June 8 seeking a larger mandate both personally and for Brexit, negotiations for which should in theory start in a matter of weeks. Instead, the UK has returned a hung parliament in which no single party has an overall majority. |
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April 26, 2017 13:00 UTC
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How low can the costs of US shale oil production go? Even with oil prices hovering around the $50/b mark, the US rig count has increased rapidly while E&P companies continue to record substantial reductions in well drilling costs. The increase in new well oil production per rig demonstrates the extraordinary gains the shale drillers have made. |
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April 19, 2017 05:00 UTC
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Angola faces a dilemma. If OPEC and non-OPEC producer cuts fail to deliver on price, the country faces not just a low-price environment but a curb on output. For a state so dependent on oil revenue, this only leaves one source available to improve the state’s finances – the oil industry. |
 
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March 29, 2017 16:00 UTC
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With the UK now firmly — and seemingly irreversibly — on track toward Brexit after Prime Minister Theresa May notified Brussels of its intention to leave the EU on March 29, question marks still hang over what impact the persistent weakness of the pound may have on the UK’s fuel costs. The UK is — since 2004 — a net importer of energy, meaning the fall in the value of sterling makes dollar- or euro-denominated commodity purchases more expensive. |
 
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September 20, 2016 11:00 UTC
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“Crisis brings opportunity and change” is one of the most widely used expressions in the financial world, but in the case of the Brazilian aluminum industry, it sums up the current situation perfectly. The “change” referred to would require returning to the situation of only a few years ago. |
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August 18, 2016 13:45 UTC
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Central banks’ implementation of negative policy rates is at an unprecedented scale, reflecting both the limits of previous unconventional monetary policies and a general inability to utilize fiscal stimulus to jump start economic growth. However, this extreme policy approach will have consequences, both intended and unintended, for markets, macroeconomic balances, investors, consumers, and policymakers. |
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February 24, 2016 00:01 UTC
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Pemex, Mexico’s state oil company, is hoping that an infusion of capital from private equity firms and other foreign investors will help it stave off a pressing liquidity crunch. Pemex, which is going through a number of key reforms, is suffering from not only lower oil and natural gas prices, but also has had to increase its debt to fund outflows for taxes, duties and capital spending, all while seeing a roughly 6.7% year-over-year oil production decline. |