CFR Presents

Energy, Security, and Climate

CFR experts examine the science and foreign policy surrounding climate change, energy, and nuclear security.

Posts by Category

Showing posts for "oil"

Time to Repeal U.S. Oil and Gas Tax Breaks

by Varun Sivaram

This post is co-authored by Sagatom Saha, research associate for energy and foreign policy at the Council on Foreign Relations. Read “The Impact of Removing Tax Preferences for U.S. Oil and Gas Production,” a Discussion Paper from CFR’s Program on Energy Security and Climate Change in the Center for Geoeconomic Studies. Read more »

Why the United States Should Respond to Oil Price Volatility By Reducing Oil Consumption

by Varun Sivaram
A service truck drives past an oil well on the Fort Berthold Indian Reservation in North Dakota (REUTERS/Andrew Cullen). A service truck drives past an oil well on the Fort Berthold Indian Reservation in North Dakota (REUTERS/Andrew Cullen).

This post is co-authored by Sagatom Saha, research associate for energy and foreign policy at the Council on Foreign Relations. Read the report from a recent CFR workshop on oil price volatility. The workshop, hosted by Michael Levi and Varun Sivaram, was made possible by the support of the Alfred P. Sloan Foundation. Read more »

The Strategic Petroleum Reserve: A Policy Response to Oil Price Volatility?

by Guest blogger for Varun Sivaram
A maze of crude oil pipes and valves at the Strategic Petroleum Reserve in Freeport, Texas (REUTERS/Richard Carson). A maze of crude oil pipes and valves at the Strategic Petroleum Reserve in Freeport, Texas (REUTERS/Richard Carson).

This guest post is authored by Jason Bordoff, professor of professional practice and founding director of the Center on Global Energy Policy at Columbia University’s School of International and Public Affairs. For more on the causes, consequences, and policy implications of oil price volatility, read the report from a recent CFR workshop. Read more »

Oil Exports Budget Deal? Market, Climate, and Geopolitical Consequences

by Michael Levi
REUTERS/Lucy Nicholson REUTERS/Lucy Nicholson

News outlets are reporting that a congressional budget deal could end the oil export ban in exchange for extension of the Investment and Production Tax Credits (ITC and PTC) that support solar and wind energy. Here I want to lay out what ending the oil export ban could mean for markets, climate, and geopolitics. (I suspect Varun may weigh in later on the ITC/PTC extensions if and when details emerge.) Short version: Little immediate impact on anything; a possible boost on the order of a few hundred thousand barrels a day to U.S. oil production over the longer run; a factor of perhaps fifty smaller impact on carbon dioxide emissions than the Clean Power Plan and CAFE (fuel economy standards); and a mixed bag for geopolitics and trade talks. Read more »

Big Oil Price Moves Reveal Less Than You May Think

by Michael Levi

What do the remarkable swings in oil prices over recent months tell us about the state of the oil production, consumption, and the global economy? One would think a lot: rising prices signal weakening production, growing demand from consumers, and a relatively healthy global economy; falling prices reveal robust output, slow consumer demand growth, and, more broadly, a faltering global economy. Take the August oil price collapse: many observers of the world economy took it as a sign that the Chinese economy was stumbling. The remarkable behavior of oil inventories, though, suggests that recent price moves tell us much more about market sentiment and beliefs about the future, and considerably less about fundamentals, than one might imagine. Read more »

The Environmental and Climate Stakes in Arctic Oil Drilling

by Michael Levi
Oil Drilling Arctic Environment Climate

On Monday, the Obama administration gave Shell conditional permission to move forward with Arctic oil drilling. The New York Times captures a common sentiment well in identifying this as a “tricky intersection of Obama’s energy and climate legacies”. The reality, though, is that this intersection isn’t nearly a fraught as many assume: decisions about offshore drilling in Alaska are indeed difficult, given the local economic and environmental stakes involved, but climate isn’t a central factor. Read more »

Five Things I Learned About the Oil Price Crash

by Michael Levi
Oil Price Crash 2015

The Council on Foreign Relations hosted a symposium yesterday on the causes and consequences of the oil price crash. Our three panels tackled the reasons for the crash and the future of oil prices; the economic fallout from the crash in the United States and around the world; and the geopolitical consequences of the oil price crash, both to date and going forward. (These links will take you to video of each session.) I trust that everyone took distinct conclusions away from the day. Here are five things I learned or hadn’t properly appreciated before: Read more »

A Must Read New Book on Oil, Finance, and Economic History

by Michael Levi
Market Madness

In 1863, with the first American oil boom “at full tilt”, Andrew Carnegie had an epiphany: the world would soon run out of oil. He and a partner “decided to dig an enormous hole, capable of holding 100,000 barrels of oil”, where they would stockpile crude “until the worldwide oil shortage had struck”. When that happened, they’d be rich – to be precise, they’d be millionaires. Read more »