The Economics Of Energy Overview Flashcards
What is the foundation of our modern global economy system?
Energy
What is another term for mainstream micro/macroeconomics?
Neoclassical Micro/macroeconomics
Energy is at the center of the world’s…
Economic, political, and trade systems
Who is England’s best economist?
William Stanley Jevons
What book did Jevons write?
The Coal Question: An Inquiry Concerning the Progress of the Nation, and the Probable Exhaustion of it’s Coal Mines
In what year was the Coal Question written?
1865
Peak oil is?
The point where global extraction reaches its highest (peak) rate and begins to decline
What is the main problem in the economics of nonrenewable energy sources?
Depleting it to a point where extraction costs the price to drive up
Energy’s relationship with the economy is mediated by…
Monetary factors
Energy production costs affect the whole of the economy in terms of prices of goods. True or False?
True
Primary energy sources include:
Coal, oil, and natural gas to name a few
_______ was the most important energy source of the twentieth century.
Oil
Which energy companies nurtured the U.S. and British economies?
Private oil giants
Companies who produce oil desire a ____ price.
Stable
What bargain was produced between the U.S. government and the oil companies?
The government allowed oil companies to restrict production and helped them do so with a set of federal laws and policy
What are the five stages of the oil supply chain?
- Exploration and Production
- Transport (well to refinery)
- Refining (into jet fuel, oil, heating oil, etc)
- Transport (refinery to market)
- Marketing (retail sales)
What is the term that sets production limits in US producer states?
Prorationing
What did major oil companies argue?
That production restrictions stabilized the market and conserved oil deposits by preventing overproduction
The era of stable prices lasted until…
The 1970s energy revolution
What is another term for 1970s oil price shocks?
Energy Crisis
State owned companies often operate in which kind of ventures?
Joint Ventures
How many state owned oil companies does the U.S. have?
None
During what decades did the U.S. state and federal government play a role in domestic oil production?
1930s-1979s
What was the cumulative effect of the policies made during the 30-70s?
To restrain production, keep cheap foreign oil from flooding the market, and guarantee higher US price than competitive market conditions would have brought
During the Great Depression which state produced the largest amount of oil in the US?
Texas
Over the last 200 years the energy market has experienced this kind of economic shift
Exponential Growth
What were the five founding countries in OPEC?
Saudi Arabia, Kuwait, Venezuela, Iraq, and Iran
Natural Gas became an important household fuel in _____________.
Early 1900s
In what decade did nuclear power become a major source of energy?
1970s
