Tag Archives: Oil

The State of the Venezuelan Economy

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For those of you who may not know, Venezuela is in the midst of a massive economic crisis that is leaving people without basic necessities. Inflation is expected to reach 720%, up from 275% at the end of 2015. GDP has been contracting since 2014. Drought has left the government to rationing out water, and because Venezuela relies on hydroelectric dams to produce much of its energy, the drought has caused power shortages. The government has been running huge budget deficits on social programs that they can no longer afford, as high as 29% of its GDP in 2014. Unemployment is at Continue reading The State of the Venezuelan Economy→

How the Recycling and Oil Markets are Connected

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When someone thinks about markets being connected, the oil and recycling markets aren’t the ones that usually come to mind. Yet, the oil market is significantly damaging the recycling market right now and it won’t get any better until oil prices rise again. According to a New York Times article from February, Waste Management (the main company that collects recycling) could sell a bale of plastic last year for $230. Now, the price is down to $112 for each bin. Why is this happening? Here’s an excerpt from the NYT article mentioned earlier: New plastics are made from the byproducts of oil and gas Continue reading How the Recycling and Oil Markets are Connected→

Internal Effects of Saudi Arabia’s Oil Price Decline

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If you’ve been following recent market trends, or if you drive a car, you know that petroleum and petroleum products (gasoline) have been getting cheaper for the past 18 months or so. The reasons for the decline are complicated to say the least involving OPEC, the Organization of Petroleum Exporting Countries, and are a story for another time, but the truncated story is that Saudi Arabia is forcing prices down because they can produce oil much cheaper than any other country, causing other oil exporting countries to lose money for producing oil. However, this seems to have been having an Continue reading Internal Effects of Saudi Arabia’s Oil Price Decline→

The Keystone XL Pipeline

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The Keystone XL pipeline is a proposed pipeline construction project that would funnel crude tar sand oil from Alberta Canada to refineries along the Gulf of Mexico in Texas. As this is a construction project that is both international and revolves around environmental issues, many interested groups are involved. Environmental activists argue against the project, saying that the construction is contradictory to progressive environmental standards. Canadian Prime Minister Stephen Harper and corporation TransCanada would see the pipeline put in tomorrow and say that construction will create jobs for and attract investment to the US. Ultimately, the decision is up to Continue reading The Keystone XL Pipeline→

Opportunity or a Trap? The Economic Impact of Scottish Independence

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The contention between Scotland and England is a historical issue and there have been calls for Scottish Independence for hundreds of years. In the past these views have been dismissed, but under Scottish Prime Minister Alex Salmond, Independence has taken a new seat in the headlines. While there are surely deep national and politic issues surrounding this topic, what would succession mean economically? Independence for Scotland would offer a buffet of options that were not available say 60, or even 20 years ago. Unexhausted rich oil reserves along the Scottish coast are a hot topic when talking about potential Scottish Continue reading Opportunity or a Trap? The Economic Impact of Scottish Independence→