“The plunging oil price is like a dangerously addictive painkiller: short-term relief is being provided at a cost of serious long-term harm”

If you are interested in the economics of energy then the Financial Times today is well worth buying from the news stand. Ed Crooks provides a superb analysis of the effects that oil and gas price volatility is having on the economic viability of different segments of the energy industry - ranging from conventional oil to unconventional oil (including oil shale, coal to liquid and the oil sands projects) and also the impact of changing prices on demand for and the likely returns from biofuels, nuclear, coal and renewable supplies of energy. There is a superb graphic on page 11 that will grace any classroom wall and make a tremendous teaching handout for students who want to understand more about the demand outlook for different fuels.

Here is the link to Ed’s article. But best to buy your own copy of the FT today for the graphic alone!