Commodity Futures Trading Commission (CFTC) chairman Gary Gensler refused to detail a timetable for imposing position limits on energy traders today, but called for tighter regulation of dealers in over-the-counter derivatives.
9 years ago
Bio Diesels making a comeback?
Are bio diesels making a comeback? The recent initiatives around energy efficiency are leading to a renewed focus on rail transportation of goods (see Berkshire Hathaway's recent investment) and diesel in general.
At least one company thinks so: Valero has just made a big investment in jatropha. We had heard of this plant a few years ago when it was going to the solution to the world's fuel problems followed by a couple of years of silence and unkept promises.
This plant is also partly causing the issue of land grabbing in Africa for both cultivable land as well as waste lands. Other reasons being dearth of cultivable land in the Middle East, desperate measures to support burgeoning populations in developing countries and opportunism.
At least one company thinks so: Valero has just made a big investment in jatropha. We had heard of this plant a few years ago when it was going to the solution to the world's fuel problems followed by a couple of years of silence and unkept promises.
This plant is also partly causing the issue of land grabbing in Africa for both cultivable land as well as waste lands. Other reasons being dearth of cultivable land in the Middle East, desperate measures to support burgeoning populations in developing countries and opportunism.
Wind and Corruption
A recent article from the NY Times explores the growing risk of corruption and fraud in the highly subsidized but lightly regulated wind business:
NY Times | With Wind Energy, Opportunity for Corruption
European Gas : End of the Summer-Winter Cycle ?
An interesting article on Platts.com talks about how there is a perception of a glut in supply in the European gas markets, which is leading to almost no difference between summer and winter gas prices for 2010. The low gas prices (coupled with the low carbon prices) also mean that owners of gas-fired power plants are laughing all the way to the bank.
A large contributor to the glut is the emergence of shale gas as a viable option in the US and ,in the future, in Europe.
Seems a far cry from last year's fears of European dependence on Russian gas and being held hostage by a great angry bear.
For more go to the link (free sign-in required)
A large contributor to the glut is the emergence of shale gas as a viable option in the US and ,in the future, in Europe.
Seems a far cry from last year's fears of European dependence on Russian gas and being held hostage by a great angry bear.
For more go to the link (free sign-in required)
Correlating Recessions and Oil Prices
I was reading another POV on peak oil and found this graph in the discussion which I thought was well presented. You can find the article – which feels like a relatively even handed “peakist” view – here: Time and the Latest CERA Report. The actual article where this chart originated is more specifically geared to the relationship oil price has with recessions and can be found here: Further Evidence of the Influence of Energy on the US Economy. In this latter article, take a look at the comments from some not so moderate “peakists.”
World Energy Outlook released … concerns over it’s legitimacy raised
As we approach the release of the annual World Energy Outlook (released today) report from the IEA there are new reports coming out that suggest that the US Government has been putting pressure on the IEA to inflate the rate of flow through the supply chain from today’s 83m barrels/day to 105m by 2030. This new criticism has not been responded to yet by the IEA but apparently they have said they will respond to it soon.
Article Reference: Key Oil Figures Were Distorted by US Pressure | Guardian
How should we respond to this type of information? My suggestion is that we don’t react yet; this “finding” is really just in the rumour stage and unless the story develops we will likely be at the whim of two large “global storylines” promoted by very well capitalised interest groups or highly passionate people who both believe that the ends justify the means when it comes to mass media manipulation (or at least obfuscation). As a result these stories hit the press relatively frequently and the press – either unwittingly or through influence – promotes the stories as news more than as rumour. This in turn further entrenches most people into the camp that they were already in (a la, “the echo chamber” effect) and on occasion – typically when prices are directly effecting the end customer’s lifestyle – helps to create movement of public opinion in the debate. To be completely clear … I am not suggesting that this most recent rumour is incorrect, simply that there is no way to know at this stage.