Monetary Policy and Crude Oil


Book Description

The global crude oil market is critically important in many respects. It is the fuel that drives the global economy and, as such, is the focus of climate policies. Moreover, crude oil is the basis of a tradable financial asset. It is therefore connected to several outstanding macroeconomic developments of recent years, including financial market fluctuations, the financial crisis and the exceptional conduct of monetary policy. This book investigates the impacts of monetary policy and the financial system on the global crude oil market. Furthermore, it outlines how monetary policy may also be used to guarantee stability and to contribute to ecological sustainability.




Crude Volatility


Book Description

As OPEC has loosened its grip over the past ten years, the oil market has been rocked by wild price swings, the likes of which haven't been seen for eight decades. Crafting an engrossing journey from the gushing Pennsylvania oil fields of the 1860s to today's fraught and fractious Middle East, Crude Volatility explains how past periods of stability and volatility in oil prices help us understand the new boom-bust era. Oil's notorious volatility has always been considered a scourge afflicting not only the oil industry but also the broader economy and geopolitical landscape; Robert McNally makes sense of how oil became so central to our world and why it is subject to such extreme price fluctuations. Tracing a history marked by conflict, intrigue, and extreme uncertainty, McNally shows how—even from the oil industry's first years—wild and harmful price volatility prompted industry leaders and officials to undertake extraordinary efforts to stabilize oil prices by controlling production. Herculean market interventions—first, by Rockefeller's Standard Oil, then, by U.S. state regulators in partnership with major international oil companies, and, finally, by OPEC—succeeded to varying degrees in taming the beast. McNally, a veteran oil market and policy expert, explains the consequences of the ebbing of OPEC's power, debunking myths and offering recommendations—including mistakes to avoid—as we confront the unwelcome return of boom and bust oil prices.




Crude Policy


Book Description

The United States is sitting on the brink of total economic collapse. A major energy shortage has crippled the economy. Unemployment and inflation are spiraling out of control. The media is focused on America's impending fall, and a growing state of panic is taking over the country. Unwilling to let the nation decline without a fight, the president has initiated a bold plan to build a major new oil and gas refinery. The new program becomes the beacon of hope for the country—and the target of destruction by America's most deeply rooted enemies, who will go to any lengths to make sure it fails. Brian Larson has worked this whole career to get to this moment: the moment when he would take control over the most powerful oil company in the world. But Brian's hopes and dreams are shattered when the outgoing company president sabotages Brian's advancement, leaving him unemployed for the first time in his career. With no family and few friends, Brian feels lost—until he suddenly finds himself selected to lead the building of the new government refinery. Brian must lead a team of the world's experts in building the refinery—a project that would typically take seven years—in nine months. Brian is reenergized by his key role in saving the country's economy. But will his renewed career and a team of world class engineers be enough to save America from imminent decline?




Oil Leaders


Book Description

Oil is an unusual commodity in that individual decisions can have an outsized effect on the market. OPEC+’s choice to increase production, for instance, might send prices falling, affecting both oil producers and consumers worldwide. What do the leading oil market players consider before making a fateful move? Oil Leaders offers an unprecedented glimpse into the strategic thinking of top figures in the energy world from the 1980s through the recent past. Ibrahim AlMuhanna—a close adviser to four different Saudi oil ministers during that period—examines the role of individual and collective decision making in shaping market movements. He analyzes how powerful individuals made critical choices, tracking how they responded to the flow of information on pivotal market and political events and predicted reactions from allies and adversaries. AlMuhanna highlights how the media has played an increasingly important role as a conduit of information among multiple players in the oil market. Energy leaders have learned to manage the signals they send to the market and to other relevant players in order to avoid sending oil prices into a spiral. AlMuhanna draws on personal familiarity with many of these individual decision makers as well as his participation in decades of closed-door sessions where crucial choices were made. Featuring revelatory behind-the-scenes perspective on pivotal oil market events and dynamics, this book is a must-read for practitioners and policy makers engaged with the global energy world.




Intentional Oil Pollution at Sea


Book Description

A detailed case study of how international environmental treaties can be made more effective. Combining theoretical analysis with a rigorous empirical evaluation of changes in the compliance process over time, the book identifies policies that have increased compliance by governments and the oil transportation industry with discharge restrictions, equipment requirements, enforcement, and reporting. How do environmental treaties influence international behavior? Deliberate discharges from oil tankers have traditionally been the biggest source of oil pollution from ships, greater than much-publicized accidental spills. Although an international treaty governs how tankers must dispose of oil, compliance has been a problem. Intentional Oil Pollution at Sea is a detailed case study of how international environmental treaties can be made more effective. Combining theoretical analysis with a rigorous empirical evaluation of changes in the compliance process over time, it identifies policies that have increased compliance by governments and the oil transportation industry with discharge restrictions, equipment requirements, enforcement, and reporting. Ronald Mitchell introduces the debate over environmental treaty compliance, compliance theory, and a history of intentional oil pollution. He then uses a wealth of data to study efforts to change government and industry behavior in reporting on treaty performance, enforcing rules, and complying with equipment and discharge standards. He closes with theoretical conclusions drawn from the empirical analysis regarding the sources of effective treaty compliance as well as prescriptions for policymakers about how to negotiate more effective future environmental agreements. Global Environmental Accords series




Oil Economics and Policy


Book Description

In 20th century society, oil has played a fundamental role not only from the economic point of view, but also from the point of view of the political relationships established between major Western countries and oil-producing countries. A survey into oil history, its market dynamics and price evolution, is essential for a deeper understanding of modern industry and world economy, as world development depends on oil supplies, prices, and its political accessibility. Oil Economics and Policy follows the historical development of the oil industry, and inevitably also covers many aspects of energy resource economy. In so doing, it pays particular attention to one aspect, namely, the fixing of oil prices. This is mainly in order to attempt to understand whether, and by how much, the structural transformations that the oil industry has undergone during the various phases of its existence - and the various market structures deriving from them - have influenced the dynamics of oil prices. Alberto Clô is Professor of Industrial Economics at the University of Bologna. Minister of Industry and Trade during Lamberto Dini's government (January 1995-May 1996), he has been a member both of national and international scientific boards and of ministerial committees. He is author of numerous writings on industrial and energy economies and editor-in-chief of the journal Energia.




Monetary Policy and the Oil Market


Book Description

While oil price fluctuations in the past can be explained by pure supply factors, this book argues that it is monetary policy that plays a significant role in setting global oil prices. It is a key factor often neglected in much of the earlier literature on the determinants of asset prices, including oil prices. However, this book presents a framework for modeling oil prices while incorporating monetary policy. It also provides a complete theoretical basis of the determinants of crude oil prices and the transmission channels of oil shocks to the economy. Moreover, using several up-to-date surveys and examples from the real world, this book gives insight into the empirical side of energy economics. The empirical studies offer explanations for the impact of monetary policy on crude oil prices in different periods including during the subprime mortgage crisis of 2008–2009, the impact of oil price variations on developed and emerging economies, the effectiveness of monetary policy in the Japanese economy incorporating energy prices, and the macroeconomic impacts of oil price movements in trade-linked cases. This must-know information on energy economics is presented in a reader-friendly format without being overloaded with excessive and complicated calculations. enUsed="false" QFormat="true" Name="Subtle Emphasis"/>




International Dimensions of Monetary Policy


Book Description

United States monetary policy has traditionally been modeled under the assumption that the domestic economy is immune to international factors and exogenous shocks. Such an assumption is increasingly unrealistic in the age of integrated capital markets, tightened links between national economies, and reduced trading costs. International Dimensions of Monetary Policy brings together fresh research to address the repercussions of the continuing evolution toward globalization for the conduct of monetary policy. In this comprehensive book, the authors examine the real and potential effects of increased openness and exposure to international economic dynamics from a variety of perspectives. Their findings reveal that central banks continue to influence decisively domestic economic outcomes—even inflation—suggesting that international factors may have a limited role in national performance. International Dimensions of Monetary Policy will lead the way in analyzing monetary policy measures in complex economies.




United States Oil Policy, 1890-1964


Book Description

Gerald D. Nash offers a balanced survey on American oil policies over a seventy-five year span, and places in historical perspective the controversies of government- business relations that have resulted from oil depletion and surplus allowances. Focusing on a single industry, Nash provides a valuable study on the government's role in private economic activity. He concludes that Americans have given the government great power in regulating the nation's industries, and in particular, as they relate to defense considerations, and the laws of supply and demand within American borders, and internationally.




Oil and Sovereignty


Book Description

In the decades that followed World War II, cheap and plentiful oil helped to fuel rapid economic growth, ensure political stability, and reinforce the legitimacy of liberal democracies. Yet waves of price increases and the use of the so-called “oil weapon” by a group of Arab oil-producing countries in the early 1970s demonstrated the West’s dependence on this vital resource and its vulnerability to economic volatility and political conflicts. Oil and Sovereignty analyzes the national and international strategies that American and European governments formulated to restructure the world of oil and deal with the era’s disruptions. It shows how a variety of different actors combined diplomacy, knowledge creation, economic restructuring, and public relations in their attempts to impose stability and reassert national sovereignty.