Why Oil Always Surprises Us

“An Oracle of Oil Predicts $200-a-Barrel Crude” The headline was in the NY Times on May 21, 2008. Because the prediction came from a Goldman Sachs analyst who had been right about $100 a barrel oil when no one thought that…

Why Safe Cracking is a Monetary Policy Tool in Libya

Related to safe cracking and printing money, the impact of cheap oil on Libya and Venezuela has been somewhat surprising.

The Economic Side of Russian Vodka Consumption

Closely connected to tax revenue and civilian attitudes towards government, Russian vodka consumption was affected by economic incentives.

What Ever Happened to Ethanol?

Challenged by the power of the market, the 2007 mandate from the Congress to encourage biofuel use has created an ethanol glut.

5 Unexpected Consequences of Low Oil Prices

Low oil prices have rippled through the world economy in some surprising ways… 1. Piracy in West Africa’s Gulf of Guinea No longer worth the risk and complexity for $30 or $40 oil, the number of oil vessel attacks are down. 2. College…

Three Graphs That Tell the Whole Oil Story

Following the law of supply, U.S. shale oil firms will lower output because OPEC is letting price plummet but airlines on demand side like lower prices.

Why OPEC is Not as Powerful as You Think

The power of OPEC as a cartel that controls oil prices through quotas on its members might be a myth.

OPEC and the Prisoners’ Dilemma

Faced with rising prices and pressure to increase production what should OPEC (the Organization of Petroleum Exporting Countries) do? They could not agree. Why? Maybe it’s the prisoners’ dilemma. Picture for a moment 2 (guilty) suspects. Questioned by the police,…