The Economics Of Energy Overview

Question 0

What is the foundation of our modern global economy system?

Answer 0

Energy

Question 1

What is another term for mainstream micro/macroeconomics?

Answer 1

Neoclassical Micro/macroeconomics

Question 2

Energy is at the center of the world’s…

Answer 2

Economic, political, and trade systems

Question 3

Who is England’s best economist?

Answer 3

William Stanley Jevons

Question 4

What book did Jevons write?

Answer 4

The Coal Question: An Inquiry Concerning the Progress of the Nation, and the Probable Exhaustion of it’s Coal Mines

Question 5

In what year was the Coal Question written?

Answer 5

1865

Question 6

Peak oil is?

Answer 6

The point where global extraction reaches its highest (peak) rate and begins to decline

Question 7

What is the main problem in the economics of nonrenewable energy sources?

Answer 7

Depleting it to a point where extraction costs the price to drive up

Question 8

Energy’s relationship with the economy is mediated by…

Answer 8

Monetary factors

Question 9

Energy production costs affect the whole of the economy in terms of prices of goods. True or False?

Answer 9

True

Question 10

Primary energy sources include:

Answer 10

Coal, oil, and natural gas to name a few

Question 11

_______ was the most important energy source of the twentieth century.

Answer 11

Oil

Question 12

Which energy companies nurtured the U.S. and British economies?

Answer 12

Private oil giants

Question 13

Companies who produce oil desire a ____ price.

Answer 13

Stable

Question 14

What bargain was produced between the U.S. government and the oil companies?

Answer 14

The government allowed oil companies to restrict production and helped them do so with a set of federal laws and policy

Question 15

What are the five stages of the oil supply chain?

Answer 15

1. Exploration and Production
2. Transport (well to refinery)
3. Refining (into jet fuel, oil, heating oil, etc)
4. Transport (refinery to market)
5. Marketing (retail sales)

Question 16

What is the term that sets production limits in US producer states?

Answer 16

Prorationing

Question 17

What did major oil companies argue?

Answer 17

That production restrictions stabilized the market and conserved oil deposits by preventing overproduction

Question 18

The era of stable prices lasted until…

Answer 18

The 1970s energy revolution

Question 19

What is another term for 1970s oil price shocks?

Answer 19

Energy Crisis

Question 20

State owned companies often operate in which kind of ventures?

Answer 20

Joint Ventures

Question 21

How many state owned oil companies does the U.S. have?

Answer 21

None

Question 22

During what decades did the U.S. state and federal government play a role in domestic oil production?

Answer 22

1930s-1979s

Question 23

What was the cumulative effect of the policies made during the 30-70s?

Answer 23

To restrain production, keep cheap foreign oil from flooding the market, and guarantee higher US price than competitive market conditions would have brought

Question 24

During the Great Depression which state produced the largest amount of oil in the US?

Answer 24

Texas

Question 25

Over the last 200 years the energy market has experienced this kind of economic shift

Answer 25

Exponential Growth

Question 26

What were the five founding countries in OPEC?

Answer 26

Saudi Arabia, Kuwait, Venezuela, Iraq, and Iran

Question 27

Natural Gas became an important household fuel in _____________.

Answer 27

Early 1900s

Question 28

In what decade did nuclear power become a major source of energy?

Answer 28

1970s