Creative Commons License
Creative Commons License
Category Archives: Financial Implications
Reaching the end of offshored industrialization
Moving industrialization offshore can look like a good idea at first. But as fossil fuel energy supplies deplete, this strategy works less well. Countries doing the mining and manufacturing may be less interested in trading. Also, the broken supply lines of 2020 and 2021 showed that transferring major industries offshore could lead to empty shelves in stores, plus unhappy customers. Continue reading
The world’s economic myths are hitting limits
There are many myths about energy and the economy. In this post I explore the situation surrounding some of these myths. My analysis strongly suggests that the transition to a new Green Economy is not progressing as well as hoped. Green energy planners have missed the point that our physics-based economy favors low-cost producers. Continue reading
Posted in Financial Implications
Tagged debt bubble, electricity generation, solar electricity, wind energy
2,033 Comments
Advanced Economies Will Be Especially Hurt by Energy Limits
Historical data show that a reduction in energy availability has mostly affected the US, European countries, Japan, and other advanced economies. I expect this situation to continue as energy limits (oil and coal, especially) become more of a problem. Advanced economies will start looking and acting more like today’s less-advanced economies. Continue reading
Should the US add more LNG export approvals?
The US already has a huge amount of LNG export capacity approved but not yet under construction. The likely roadblock is the need for debt financing. One obstacle is the need to find investors willing to make very long commitments–as long as 25 years, considering the time to build the LNG plants, plus the time that they are expected to be in operation. Continue reading
Posted in Financial Implications
Tagged energy policy, natural gas exports, oil price
2,426 Comments
2024: Too Many Things Going Wrong
In 2024, the world economy is acting more and more like an 80-year-old man than like a young vigorous economy. Perhaps the economy can continue for quite a few more years, but it increasingly looks like it is in danger of falling apart, or of succumbing as a result of what might be regarded as minor problems. Continue reading
