tag:blogger.com,1999:blog-7169279.post8497389444867061228..comments2023-11-24T03:20:02.361-07:00Comments on Tufte's Economics Classes Blog - A Living Textbook: Control over Oil PricesDr. Tuftehttp://www.blogger.com/profile/17397586052171706438noreply@blogger.comBlogger16125tag:blogger.com,1999:blog-7169279.post-62450324182542274802015-04-02T21:56:20.224-06:002015-04-02T21:56:20.224-06:00Joey: 44/50 (you mean "livelihood" and &...Joey: 44/50 (you mean "livelihood" and "Deseret".<br /><br />Thanks for telling us about what's going on up in that corner of the state. I think we probably all know someone who moved up to the Vernal area to over the last few years. I was up there in 2013, and it was pretty crazy.Dave Tuftehttps://www.blogger.com/profile/14877686358267438045noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-71489758449259018182015-04-02T09:28:31.855-06:002015-04-02T09:28:31.855-06:00I have found this post to be very interesting. I ...I have found this post to be very interesting. I live in the Uintah Basin, which for those of you who do not know is mostly comprised of Duchesne and Uintah counties. In the last few months due to the reduction in the price of oil many companies have closed their doors, gone through massive layoffs, or cut hours to reduce costs. The unemployment in my county has more than doubled in the last Joeyhttps://www.blogger.com/profile/07023497074198567564noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-15126994167756636982015-03-18T14:49:31.402-06:002015-03-18T14:49:31.402-06:00Ever heard of fracklog? Here's one more though...Ever heard of <a href="http://www.bloomberg.com/news/articles/2015-03-06/introducing-fracklog-the-new-fangled-oil-storage-system-energy" rel="nofollow">fracklog</a>? Here's one more thought for our evolving understanding of the low price of oil.<br /><br />It seems like a lot of drillers in the U.S. have responded to low prices by doing the horizontal drilling, but not the fracking, in their Dave Tuftehttps://www.blogger.com/profile/14877686358267438045noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-25782862723401083072015-03-18T12:12:05.737-06:002015-03-18T12:12:05.737-06:00I found the link to that tool I mentioned in my pr...I found the <a href="http://politicalcalculations.blogspot.com/2015/01/factoring-global-demand-into-price-of.html#.VQm8QI7F8eq" rel="nofollow">link to that tool I mentioned in my previous comment</a>.<br /><br />The issue is why have oil prices dropped so much over the last 9 months, and how long can we expect that to continue?<br /><br />The problem is that this is partly due to supply Dave Tuftehttps://www.blogger.com/profile/14877686358267438045noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-84090156473578414412015-03-17T10:46:03.310-06:002015-03-17T10:46:03.310-06:00Judy: 47/50 (missing a "the" in several ...Judy: 47/50 (missing a "the" in several places).<br /><br />This is excellent: you're absolutely right about the slowdown in other large economies. <br /><br />(I came across a great tool to assess this over the weekend, and now I can't find it on the internet. I will go back to the PC I was on and check the history to see if I can find it. Watch for another comment from me).<brDave Tuftehttps://www.blogger.com/profile/14877686358267438045noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-90020911514719633562015-03-15T02:04:09.840-06:002015-03-15T02:04:09.840-06:00I agree with Dr.Tufte, and through net surfing I c...I agree with Dr.Tufte, and through net surfing I came to know some of the reasons for the rightwards shift in supply and leftward shift in the demand. Recently the economic growth in China and Germany has noted to be slower; this has impact on the demand for oil in moving it leftward. Interestingly, the popularity of fuel efficient cars (hybrid technology cars) throughout world is also another Judyhttps://www.blogger.com/profile/05054296270913565981noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-53031958862745117272015-03-11T14:29:05.006-06:002015-03-11T14:29:05.006-06:00There's news about oil you may not have heard....There's news about oil you may not have heard. I don't normally add free-standing comments at this blog, but this is one of those rare occasions. <br /><br />1) Probably the biggest name academic economist who studies oil is James Hamilton. Here he is, writing at Econbrowser, about how <a href="http://econbrowser.com/archives/2015/03/u-s-oil-production-still-surging" rel="nofollow">U.S. Dave Tuftehttps://www.blogger.com/profile/14877686358267438045noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-46445521384762043142015-02-28T19:15:03.705-07:002015-02-28T19:15:03.705-07:00EC: 50/50
I don't know that I'd say it is...EC: 50/50<br /><br />I don't know that I'd say it isn't optimal. Part of what you're supposed to be learning in any Micro or ManEc is that the parties involved in a market have different constraints ... and the constraints are what makes for unusual behavior. They are "where the action is". <br /><br />Crude oil is an odd good, because it is the one that is most tied up Dave Tuftehttps://www.blogger.com/profile/14877686358267438045noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-60914864905335937442015-02-28T14:55:51.438-07:002015-02-28T14:55:51.438-07:00The comments since I first wrote this post have be...The comments since I first wrote this post have been quite insightful and I appreciate all of them. Lacey, I'm glad you brought up financial condition of Russia and how this affects the industry. It was interesting to look into this issue a bit more. <a href="http://www.economist.com/news/europe/21639557-russian-economy-will-take-long-time-recover-it-badly-needs-structural-reforms-it?zid=298&EChttps://www.blogger.com/profile/07218812402901494815noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-71766698180476805492015-02-22T18:52:38.768-07:002015-02-22T18:52:38.768-07:00Ted: 38/50 (miscapitalization of oil, "sates&...Ted: 38/50 (miscapitalization of oil, "sates" instead of "states", you mean "can't" not "cant", and "it's" not "its", and I'm letting you slide on whether "state economies" is supposed to show agreement with the singular Texas).<br /><br />OPEC is an organization that includes Saudi Arabia. So saying OPEC and Saudi Dave Tuftehttps://www.blogger.com/profile/14877686358267438045noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-63426012161521689502015-02-22T12:46:59.789-07:002015-02-22T12:46:59.789-07:00First I would like to say how glad I am to find on...First I would like to say how glad I am to find one of my classmates had written about Oil supply / prices and the global market. I have recently been interviewing with Goldman Sachs and one of their interview questions was about this topic. Needless to say, I am glad to learn more about this. <br /><br />Effects of OPEC and Saudi Arabia not lowering production to increase the price of oil are Tedhttps://www.blogger.com/profile/04624881162754531665noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-65107002569183112952015-02-17T23:53:14.952-07:002015-02-17T23:53:14.952-07:00Pedro: 44/50 ("While where the oil is getting...Pedro: 44/50 ("While where the oil is getting used most is still not unclear..." isn't clear at all, you mean "areas of oil production" not "areas of oil producing")<br /><br />The economics in the comment is pretty muddled. There's an aphorism in economics: "don't reason from a price change". It means that your explanation has to start with whyDave Tuftehttps://www.blogger.com/profile/14877686358267438045noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-90524945920017378082015-02-16T20:33:16.401-07:002015-02-16T20:33:16.401-07:00I am also ignorant to the cause of the price drop ...I am also ignorant to the cause of the price drop in oil but have been very happy every time I have to go to the pump. The comments about OPEC have been interesting so it led me to do more research about them. Basically they are a group that produces about a third of the oil used in the world and have a heavy influence in the production of oil. <br /><br />I also came across an article that is Pedrohttps://www.blogger.com/profile/14338265909603759463noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-83491917250466536752015-02-15T23:54:05.795-07:002015-02-15T23:54:05.795-07:00Lacey: 50/50.
I think Saudi Arabia might have an ...Lacey: 50/50.<br /><br />I think Saudi Arabia might have an interest in crippling Iran. I'm not sure they care that much about Russia.<br /><br />Even so, it begs the question "Why now?". I don't think there's a good answer to that one. <br /><br />For their part, the Saudis have said that they won't cut their production to maintain high prices, but not that they'd Dave Tuftehttps://www.blogger.com/profile/14877686358267438045noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-89372075450815905512015-02-15T20:21:14.248-07:002015-02-15T20:21:14.248-07:00Dr. Tufte, I'm glad you mentioned Russia in yo...Dr. Tufte, I'm glad you mentioned Russia in your comment on the current situation with oil. A few months ago I read an article in <a rel="nofollow"> The Economist</a> that suggests the current oil prices are intentionally being kept lower than what is achievable by Saudi Arabia in an effort to financially 'cripple' Russia and Iran. We've discussed price floors and ceilings in Laceyhttps://www.blogger.com/profile/15133514756316940985noreply@blogger.comtag:blogger.com,1999:blog-7169279.post-14716484080986776832015-02-14T18:54:25.871-07:002015-02-14T18:54:25.871-07:00EC: 100/100
Here we go again folks. Let me help y...EC: 100/100<br /><br />Here we go again folks. Let me help you: stop saying that demand or supply is higher. The only way a line/curve can be higher is if they don't intersect. Exceed isn't really a good description either.<br /><br />For that matter, stop writing increased or decreased for supply and demand too. Those adjectives apply to numbers, not to lines/curves.<br /><br />There'Dave Tuftehttps://www.blogger.com/profile/14877686358267438045noreply@blogger.com