Not exact matches
Second, despite much talk of «
energy independence» down south, the truth is, though, that Uncle Sam's domestic production won't insulate America from oil -
price swings.
We supply most of the
energy and food consumed at home, providing a cushion against
swings in global commodity
prices.
Such extreme
swings in
energy prices are leaving companies and consumers paralyzed.
Shares of
energy companies are set to book their steepest monthly drop in August since the end of 2015, when the oil
price crash was in full
swing.
The table below summarizes the state of the U.S. consumer, revisiting my April post FACTS & TRENDS: The U.S. Consumer About to Retrench and showing how sensitive the consumer is to
swings energy prices.
The 0.3 percentage point increase in headline CPI between December and January largely reflected the 0.25 percentage point higher contribution from
energy prices as they
swung from a decline in December to an increase in January.
The government also plays an important role in encouraging value - added products and renewable
energy initiatives, as well as easing electricity
price swings without imposing arbitrary taxes that disadvantage retailers.
While we believe that current
energy market fundamentals justify an oil
price of $ 50 or above, we also note that productivity gains in US shale fields have increased the elasticity of supply from these critical
swing producers, a factor that could cap any significant
price appreciation.
Large
swings in
energy prices were the primary driver for the September spike and October retreat.
We are instead pressing ahead unilaterally with terrible policies: draining the budgets of families and businesses with excessive green taxes; picking losers by giving the most generous subsidies to the most expensive sources of low carbon
energy; and recreating the volatility of the housing market with an emissions trading scheme where the supply of allowances is fixed, so fluctuations in demand lead to wild
swings in the
price.
And just as
energy prices are bottoming out, major financial institutions are predicting that the stock market is close to ending its wild
price swings as investors respond to the federal government's unprecedented moves to breathe new life into the economy.
Proponents say that today
energy utilities find greater benefit in a technology that puts the financial risk up front, in the construction cost, and has little vulnerability to later
swings in the
price of fuel, as natural gas does, or to changes in emissions regulations, as coal faces.
Therefore, expanding access to
energy choice and free market
energy options is likely to become an important hedge against supply and
price swings in 2017 and beyond.
But are the rapid
swings of
energy prices a risk in and of themselves?
The history of
energy is a volatile one, as markets shift under the pressure of extreme
price swings, technology breakthroughs, geopolitical stresses, and environmental change.
Large
swings in
energy prices account for... Read More»
The world seems like a volatile and risky place with the massive daily
swings in the stock market, rising
energy prices, approaching fiscal cliff, slump in commodities, ongoing European Union debt crisis and omnipresent geopolitical risks flaming up and pushing already weak U.S. and global economies into recession once again.