Category Archives: Energy markets

Even If Oil Rally Continues, Lenders Still At Risk

Even with the impressive oil rally of the last two days, it isn’t clear that producers and lenders are out of the woods. While some analysts contend that the bottom is in, others see the rally as technical, driven in large measure by short-covering, and likely to fade.

The uncertainty lies in what is really happening on the production side


Paper Exposing Manipulation of Electricity Prices Stymied by Editor with Private Equity Ties

Yves here. I’ve read the detailed traffic between the author Eric L. Prentis and the publication in question, Energy Economics, and have also run them and his paper by academics who have or are supervising significant research and publication efforts. They gave the Prentis paper high marks and agreed that the actions of Energy Economics […]


Money Dries Up for Oil and Gas, Layoffs Spread, Write-Offs Start

When money was growing on trees even for junk-rated companies, and when Wall Street still performed miracles for a fee, thanks to the greatest credit bubble in US history, oil and gas drillers grabbed this money channeled to them from investors and refilled the ever deeper holes fracking was drilling into their balance sheets.


How the Shale Oil Revolution Has Affected US Oil and Gasoline Prices

The recent expansion of US shale oil production has captured the imagination of policymakers and industry analysts. It has fuelled visions of the US becoming independent of oil imports, of cheap US gasoline, of a rebirth of US manufacturing, and of net oil exports improving the US current account. This column asks how plausible these visions are, and examines the evidence to date.


Is Keystone Still Viable Amid Low Oil Prices?

Keystone illustrates the kabuki that passes for politics on the so-called left. In terms of climate change issues, it’s small beer, diverting resources and attention away from much bigger issues, like the environmental damage done by fracking and the need for much more aggressive energy conservation policies. Thus by virtue of having a small number of potential beneficiaries in economic terms from the project, it’s a group that Democrats could safely afford to alienate while throwing a bone to their base. The irony, as this post points out, is that the fracas may prove to be irrelevant now that oil prices have fallen so dramatically.


Big Retail Sales Miss for December Dents Theory that Consumers Will Spend Gas Savings

Mr. Market is having a major sad today largely as a result of disappointing retail sales figures for December, a 0.9% fall, well below the median forecast of analysts suveyed by Bloomberg of a fall of 0.1% and lower than the most bearish forecast of 0.5%. Maybe I should just pay attention to NC reader and shopping maven Li, who told me repeatedly that the retail environment was in poor shape based on the fact that major retail stores were putting through December markdowns vastly ahead of their usual schedule.


Green Growth or No Growth?

Many readers have taken the position that we need to put a brake on growth in order to cut greenhouse gas emissions and reduce consumption of other resources.

In a Real News Network interview, Robert Pollin goes through the math of carbon output and shows why a no growth approach is inadequate.


Yanis Varoufakis: Why He is Running for Greek Parliament on the Syriza Ticket

I’m putting up the entire Boom/Bust show in which Yanis Varoufakis appears, in part because the introductory section discusses how stressed oil producers may use secured lending to borrow more money in an effort to ride out the price bust. That would lead to a further drop in the price of any junk bonds or market value of any existing loans on those companies, since the new secured borrowing would be senior to the existing debt.