Economist James Hamilton and commentors examines the possibilitie. Is it high inventory, like the Saudi’s say? Hamilton doesn’t buy it. Are the Saudi’s trying to keep prices high? Is there a distribution bottleneck? Or Saudi Arabia closer to the bottom of the barrell — is the quality of newly pumped oil so low these days that refineries can’t handle it? Can they just not pump any more?
If it’s the latter, then this story is the equivalent of the assassination of the archduke of Sarajevo for our time. Here’s hoping that’s not the case.
Solar ferry on SF Bay – efficiency is easy
A hybrid solar/diesel ferry made by an Australian company called “Solar Sailor” has been chosen to shuttle visitors to the Alcatraz national park. The ferry is twice as fuel-efficient as typical diesel ferries. They cost about $5 million, or about twice as much as traditional ferries. The vendor says that the system would save $6 million over the 15 year life span of the vehicle, so 7 year payback period, not counting the value of reduced pollution and noise.
This is the first hybrid ferry in use in the US, ever. Meanwhile, it costs $5-10k to retrofit a Prius to get 100mpg. Today, the plugin hybrid technology is costly enough to be more of a status symbol than a cost-savings (if plugin hybrids displace some sportscars as status symbols, it’s a non-problem). Putting the technology in production will help it get cheaper. It’s possible to get more energy-efficient by a factor of lots, the question is how long we have for the transition.
How government economic stats are fudged
Just read an eye-opening interview with John Williams, an accountant who publishes