Freshman House Rep. Alexandria Ocasio-Cortez (D-NY) and some of her colleagues have made news recently by calling for a “Green New Deal” to combat climate change. Hearkening back to President Franklin Roosevelt’s aggressive countermeasures designed to pull the country out of the Great Depression, the Green New Deal sounds bold and dramatic. Speaking at a town hall meeting in December, Ocasio-Cortez called the plan “the New Deal, the Great Society, the moon shot, the civil rights movement of our generation.”
A draft bill calls for “meeting 100% of national power demand through renewable sources … eliminating greenhouse gas emissions from, repairing and improving transportation and other infrastructure … [and] eliminating greenhouse gas emissions from the manufacturing, agricultural and other industries.” What’s more, the bill calls for achieving these goals by the year 2030. Continue reading “What’s the Deal with the Green New Deal?”
I don’t know how else to say this: Energy markets are going a little crazy. First, crude oil prices plummeted, turning an earlier autumn rally into a bear-market rout. From its high of about $76 per barrel on Oct. 3., benchmark West Texas Intermediate plunged to about $55 in only five weeks. Then, natural gas prices went haywire, with the benchmark gas futures contract leaping from about $3 per million British thermal units to nearly $5 in a span of days, only to plunge back to $4 today. What exactly is going on? Continue reading “Making Sense of Energy Market Turmoil”
After more than a year in the works, President Trump’s proposal for regulating carbon dioxide emissions from the nation’s power plants is out. His plan, dubbed the Affordable Clean Energy (ACE) rule, would impose far less stringent standards on coal-fired power plants than President Obama’s Clean Power Plan (CPP), which Trump put the brakes on. Last year, when announcing several executive orders aimed at easing government regulation of the coal industry, the president declared that “My administration is putting an end to the war on coal” – a reference to his predecessor’s regulatory approach.
First, a quick rundown on Trump’s power plant regs and how they differ from what Obama tried to do: Continue reading “Can Trump Make Coal Great Again?”
As you may have heard, international trade has become something of a heated issue. President Trump left last weekend’s G7 meeting in Canada angry over the protectionist policies of some of America’s closest allies, which he emphasized by refusing to endorse the group’s written statement on shared economic, trade and environmental aspirations. Leaders of the other G7 members – the world’s seven most advanced economies – were none too pleased themselves, blaming Trump for what they viewed as undue hostility and breaches of diplomatic protocol.
It’s a fight I’ll leave to others. Reasonable people can disagree over how fairly or unfairly U.S. exports are treated by other countries. But I will note that, when it comes to foreign sales of U.S. energy products, the future looks very rosy. Continue reading “Booming Energy Output to Shrink U.S. Trade Gap”
If you’re hitting the road this holiday weekend, buckle up for the highest gas prices in several years. AAA’s website reports that the national average price of regular unleaded gas has climbed to $2.96, the highest level since late 2014. (Of course, some parts of the country are already paying quite a bit more. The national average encompasses a wide range of prices.) A year ago, the price at the pump averaged a much more wallet-friendly $2.37 per gallon, according to AAA.
And prices probably aren’t done climbing. Last month, I warned that the national average was likely to reach $3 this spring. That likely will hit Memorial Day weekend. Crude oil prices continue edging up, but such increases generally don’t reach the pump until a week or two later. Continue reading “Your Memorial Day Weekend Road Trip Just Got More Expensive”
If you fill up your car’s gas tank with any regularity, you don’t need me to tell you that prices at the pump are on the rise. AAA reports that the national average price of regular unleaded now stands at $2.72 per gallon, up from $2.54 a month ago and $2.41 this time last year. (That national average contains a lot of regional variability. In California, for instance, regular sells for $3.55. In South Carolina, just $2.49.)
Will the run-up keep going? And just how high will prices get? Continue reading “Gasoline Prices Nearing Multiyear Highs”
It’s not just the stock market that tumbled this week. Crude oil prices are down sharply, too. But is this the end of the “epic price rally” that I wrote about two weeks ago?
Benchmark West Texas Intermediate crude has fallen by more than 10% from its Jan. 26th peak of $66 per barrel. Much of that selloff has coincided with the sudden drop in stock prices that began a week ago. This week, when the Dow Jones Industrial Average saw its two biggest single-day point drops in history, WTI came along for the ride. Continue reading “What To Make Of the Oil Market Stumble”
If you follow the energy markets at all, you already know that crude oil is enjoying an epic price rally. In mid-July of last year, benchmark West Texas Intermediate crude was trading at $45 per barrel. Six months later, WTI has zoomed to $64 per barrel: A heady 40% advance, which makes the stock market look positively pedestrian by comparison.
So, what gives? And more importantly, can the rally continue? Continue reading “What’s Fueling Oil’s Big Rally?”
The oil market has been nothing if not volatile this autumn. At the beginning of September, the price of benchmark West Texas Intermediate hovered near $47 per barrel after spending most of the summer trading in the mid-$40s. Then suddenly, in the wake of Hurricane Harvey, WTI went on a tear, shooting up to $57 per barrel by early November: A tidy 21% gain at a time when oil demand tends to be low.
Had crude finally begun a sustained rebound after several years of depressed prices? Many oil bulls seemed to think so. Or at least, many did until earlier this week, when WTI dropped sharply after the International Energy Agency issued a prediction that global oil demand will grow more slowly next year than previously expected. Are oil prices just taking a breather before the next leg up? Or did this week’s drop mark the end of the autumn rally? Continue reading “Where Do Oil Prices Go Next?”
Here’s something the oil market hasn’t seen lately: A price rally.
After falling as low as $46 per barrel on Aug. 30, when Hurricane Harvey forced Gulf Coast refineries to shut down, benchmark West Texas Intermediate crude oil has soared to about $57 per barrel. The price run-up reflects several factors: Improving economic growth around the world; hints from OPEC that its current policy of limiting crude exports will continue for longer than first scheduled; and turmoil in Saudi Arabia, where several high-ranking officials and members of the royal family have been arrested on corruption charges. (Anything that threatens the internal stability of OPEC’s largest oil producer is bound to raise concerns about potential interruptions in crude shipments.) Continue reading “U.S. Oil Exporters Cash in on Higher Prices, Strong Demand”