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Tag Archives: supply and demand
Why Oil Prices Can’t Bounce Very High; Expect Deflation Instead
Economists have given us a model of how prices and quantities of goods are supposed to interact. Unfortunately, this model is woefully inadequate. It sort of works, until it doesn’t. If there is too little of a product, higher prices … Continue reading
Posted in Financial Implications
Tagged collapse, exports, imports, low oil prices, peak oil, supply and demand
2,280 Comments
Why “supply and demand” doesn’t work for oil
The traditional understanding of supply and demand works in some limited cases–will a manufacturer make red dresses or blue dresses? The manufacturer’s choice doesn’t make much difference to the economic system as a whole, except perhaps in the amount of … Continue reading
Posted in Financial Implications
Tagged debt defaults, low oil prices, oil demand, oil production, peak oil, supply and demand
1,389 Comments
Why US natural gas prices are so low – Are changes needed?
US natural gas prices are at record lows–about where they were in 1976, and at the low points in the 1990s, in today’s dollars (Figure 1). There are several reasons why US natural gas prices are so low: Our pricing … Continue reading
