Oil

Mr. Market gets it wrong again

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Let me take a moment to explain why oil prices reflecting actual market conditions might be important to us. Regardless of whether we are in the Peak Oil Era — we probably are — in 2009, we would like to know at all times what the relative abundance of the Elixir of Life (with respect to demand for it) for Industrial Civilizations is.

The myth of efficiency

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What makes efficiency? Is it clever management? The “productivity” of human resources? Economies of scale? Centralization? Better information and computer systems? The competition of markets? Business people give credit to these innovations, and all of these changes may contribute incrementally to the cheapness of our food, but these are just icing on the cake. The real underpinning of what we think of as efficiency is cheap energy – especially cheap oil.

Energy conservation key to R.I.’s economic future

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Contrary to what many now believe, Rhode Island’s relative prospects are excellent. This is because the primary challenge to America’s economic recovery is likely to be the cost of energy. As recovery spurs rising energy consumption, prices will increase, perhaps dramatically. Since energy underpins all economic activity, those regions capable of operating in an energy-constrained environment will have relatively bright futures. Rhode Island, which already uses less energy per person than any other state, is particularly well-suited to meet the challenge.