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External Publications by Tim Boersma • December 21, 2016
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Abstract
When comparing oil and gas projects – their relative attractiveness, robustness, and contribution to markets – various dollar per barrel benchmarks are quoted in the literature and in public debates. Among these benchmarks are a variety of breakeven points (also called breakeven costs or breakeven prices), which are widely used, and widely misunderstood. Misunderstandings have three origins: (1) There is no broadly accepted agreement on definitions; (2) for any given resource there is no universally applicable benchmark; (3) various breakeven points and other benchmarks are applicable at various times in the development of a resource. In this paper we clarify the purposes of several benchmarks and propose standardized definitions of them. We show how and why breakeven points are partitioned, and when each of the partitioned elements is appropriate to consider. We discuss in general terms the geological, geographical, product quality, and exchange rate factors that affect breakeven points. We show how breakeven points change over time due to endogenous and exogenous factors. We describe some other factors that contribute to tight oil market dynamics. Finally, we explore macroeconomic and policy implications of a broader, more rigorous, and more consistent application of the breakeven point concept, and the understanding of the inelasticities that accompany it.
CGEP scholars reflect on some of the standout issues of the day during this year's Climate Week
Plug-in electric vehicles (EVs) are reshaping the transportation energy landscape, providing a practical alternative to petroleum fuels for a growing number of applications. EV sales grew 55× in the past decade (2014–2024) and 6× since 2020, driven by technological progress enabled by policies to reduce transportation emissions as well as industrial plans motivated by strategic value of EVs for global competitiveness, jobs and geopolitics. In 2024, 22% of passenger cars sold globally were EVs and opportunities for EVs beyond on-road applications are growing, including solutions to electrify off-road vehicles, maritime and aviation. This Review updates and expands our 2020 assessment of the scientific literature and describes the current status and future projections of EV markets, charging infrastructures, vehicle–grid integration and supply chains in the USA. EV is the lowest-emission motorized on-road transportation option, with life-cycle emissions decreasing as electricity emissions continue to decrease. Charging infrastructure grew in line with EV adoption but providing ubiquitous reliable and convenient charging remains a challenge. EVs are reducing electricity costs in several US markets and coordinated EV charging can improve grid resilience and reduce electricity costs for all consumers. The current trajectory of technology improvement and industrial investments points to continued acceleration of EVs. Electric vehicles are increasingly adopted in the USA, with concurrent expansion of charging infrastructure and electricity demand. This Review details these trends and discusses their drivers and broader implications.
US tariffs on India for purchasing Russian oil may stem more from frustrations in US-India trade negotiations than from a concern about funding Russia’s war in Ukraine.
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External Publications by Tim Boersma • December 21, 2016