Power prices are expected to soar under new tax cut and spending law
In states without policies to drive renewable energy, power prices could surge as federal tax incentives for clean energy disappear, according to Energy Innovation, a think tank.
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Commentary by Robert McNally • December 17, 2015
In this commentary piece, Bob McNally, a Fellow at the Center on Global Energy Policy and Founder and President of The Rapidan Group, explains how OPEC abdicated the role of market manager over ten years ago–not just in the last year–and that we have already seen the results in a boom (2004–2008) and two busts (2008, 2014–2015) in oil prices. Given oil’s vital role in the global economy, financial markets, and policymaking, coping with elevated price volatility will require the sustained and smart attention of business and government leaders.
China’s dependence on the energy supplies that move through the Strait of Hormuz makes it especially vulnerable to any possible closure of the waterway by Iran in retaliation for attacks by Israel and the United States.
The conflict between Iran, Israel, and now the United States has yet to disrupt energy supplies to global markets.
Calls to "Drill, baby drill" are back with Donald Trump's return to the White House, and for US natural gas production, the catchphrase might also be a necessity over the next three years if demand for the fuel grows as steeply as expected.