Energy Insights

While financial markets are not always right, it is useful to see what they have to say. Chart A plots the stock price performance of the three companies that are most closely tied to the oil spill–BP, Transocean and Halliburton. As you can see, the stock prices of the three companies have been hammered, realizing [...]

The recent BP incident in the Gulf of Mexico raises an important policy issue: Should we put a moratorium on new drilling? Should we be drilling now or drilling later? Some might respond with “drill never,” but never is a long time and it is a pretty safe bet that the oil will eventually be [...]

Suppose you are choosing between two light bulbs. The first is the energy efficient forever light bulb, which lasts forever, costs $52, and uses $2 of electricity per year. The second is a traditional light bulb, which costs $2 dollars, lasts 1 year, and uses $4 in electricity per year. Which light bulb would you [...]

A Conversation with Professor Carlos Molina In a recent Energy Brief, Carlos Molina, Associate Professor at IESA Business School in Venezuela, comments on the current situation in Venezuela noting that though Venezuela has the potential to eventually become the largest oil producer in the world, there are also considerable challenges. I would like to follow [...]

Alternative energy is heavily subsidized in the United States and even more so in EU countries like Germany. Billions of dollars are spent each year on subsidies, yet there has been relatively little discussion of the motivations for the subsidies and even less on how alternative energy should be subsidized. I would like to start [...]