Information about finance, the economy and business. Entertaining and informative. Seeking Alpha Certified Mark Sunshine Chairman & CEO

Category Archive: Oil

  1. Does $100 Oil Kill All Business Activity?

    High oil prices tend to trig­ger a so-called “neigh­bor­hood effect” where selected man­u­fac­tur­ing busi­nesses that are located closer to their cus­tomers get a price advan­tage over com­peti­tors that are located far away. That is because local busi­nesses have lower trans­porta­tion costs than their out of town, or out of coun­try, com­peti­tors. [read full story]

    Posted in: economy, Energy, Oil, Public Policy
  2. The Inflation Monster Is Tame

    Despite the quick run up in gaso­line prices, the U.S. econ­omy isn’t about to be eaten by the infla­tion mon­ster. While it is a good bet that some­time in the next few years the Fed will have to deal with ris­ing infla­tion, now isn’t the time to change mon­e­tary pol­icy in an effort to slay […] [read full story]

    Posted in: CPI, Deflation, Economic Statistics, economy, Finance, Inflation, M2, Monetary Policy, Oil, Public Policy
  3. Another Big Win For Energy Economics 101: Demand Destruction Isn’t Good For New Investment

    On Mon­day the Wall Street Jour­nal ran an arti­cle that described the end of the golden era for oil refin­ers. It is a great arti­cle that, unfor­tu­nately, was pub­lished many years too late to be con­sid­ered news. Just as grav­ity is a force that brings all objects to earth, pub­lic pol­icy that destroys the demand […] [read full story]

    Posted in: economy, Energy, Finance, Oil, Politics, Public Policy
  4. Low Oil Prices Kill Energy Investments

    Last week I pub­lished a blog arti­cle that dis­cussed energy pol­icy and sug­gested that an effec­tive energy pol­icy requires fed­er­ally estab­lished min­i­mum oil prices. Low and volatile oil prices destroy pri­vate invest­ment in energy projects because returns become too uncer­tain to attract financ­ing. As oil trades between $40 and $50 per bar­rel invest­ment capac­ity for […] [read full story]

    Posted in: economy, Energy, Finance, Oil, Politics
  5. Three Inconvenient Energy Policy Truths

    Pres­i­dent Elect Obama nom­i­nated his energy team yes­ter­day and empha­sized that energy pol­icy is a national pri­or­ity. Every Pres­i­dent since Jimmy Carter has talked about U.S. energy inde­pen­dence, but no Pres­i­dent has actu­ally bro­ken the U.S. addic­tion to imported oil. In the 1970s, I stud­ied energy eco­nom­ics and pol­icy and learned that man­dates, slo­gans and “feel […] [read full story]

    Posted in: economy, Energy, Finance, Obama, Oil, Politics
  6. Money Supply And Economic Data Weekly Watch – Deflation Hurts The Economy Like Hydrochloric Acid Burns Through Steel

    Defla­tion hurts the econ­omy like hydrochlo­ric acid burns through steel. Falling prices destroy cor­po­rate and house­hold bal­ance sheets and make it impos­si­ble for the finan­cial sec­tor to func­tion nor­mally. Demand is destroyed by defla­tion which in turn leads to more defla­tion. The weak­est sec­tors are hurt first, but defla­tion quickly burns through healthy indus­tries. This […] [read full story]

    Posted in: BANKS, Bernanke, CPI, Deflation, Economic Statistics, Finance, GDP, Inflation, M1, M2, Manufacturing, monetary policy, Money Supply, Obama, Oil, Politics, Public Policy, Retail Sales

    Today Con­gress announced a great break­through that explains the cause of high oil prices. The cure for the energy crises is now known and sim­ple leg­is­la­tion will cut gas prices, help the econ­omy and raise liv­ing stan­dards. MarketWatch’s head­line said it all: “Gas could fall to $2 if Con­gress acts….Limiting spec­u­la­tion would push prices to fun­da­men­tal […] [read full story]

    Posted in: Oil