Cheap oil!

A few days ago, before the stock market collapsed (!) I noted that due to the ongoing clash between the world's two biggest suppliers of crude oil (OPEC and Russia) the price of oil was dropping quite a bit, lower than it had for about 4 years. Cheap oil and gas would have been a boost for consumers (and a loss for those who love the environment)... but guess what? Now everyone is staying home. Airlines are among the biggest consumers of oil, but no one's traveling; manufacturing too is tanking. So not only were prices low from the price wars, but STILL nobody wants oil, even at those prices. (Except Trump, who is taking the opportunity to refill the strategic reserve- can't really argue with that move.) Anyway, today the price dropped again to about $23/ barrel, a price not seen since 2002.

This is a huge, positive development for the environment and particularly a big step against climate change. If only it wasn't coming at such a horrible, horrible human cost....

To hear more about it, including the view from a genuine expert, check out this 30-minute (ish) podcast ... and even the full transcript is included at the same link! Excuse me while I go read it....

Enter... CORONAVIRUS!

The good news: as the economy grinds to a halt, pollution also slows.... https://twitterhttps://twitter.com/novaaa/status/1238879131456208903.com/novaaa/status/1238879131456208903?s=20

https://twitter.com/novaaa/status/1238879131456208903?s=20

https://twitter.com/novaaa/status/1238879131456208903

Some bad news (though not nearly as bad as the real bad news) is price gouging, which in general economists support. Gotta say, though, it's a bad look!

https://www.nytimes.com/2020/03/14/technology/coronavirus-purell-wipes-amazon-sellers.html

The idea is that higher prices will incentivize suppliers to provide more of the good when a particular need crops up. For example here in Maryland, a pharmacist is able to synthesize hand sanitizer, which normally it wouldn't be worth her time to do, but in cases like this she can put extra effort into the task.

https://www.fox5dc.com/news/fox-5-found-toilet-paper-in-silver-spring
https://twitter.com/novaaa/status/1238879131456208903?s=20

Russia vs OPEC

Could it be... a price war? https://twitter.com/gbrew24/status/1236451791610490880

A similar take from US News & World Report

Pretty much timed perfectly from a class perspective- we'll see if we get the cheap gas that this thread predicts!