Tag Archives: energy

The new economics of energy storage

Posted on June 5, 2017 by | Leave a comment

This article by David Frankel and Amy Wagner (June 2017) shows why it is reasonable to expect battery storage to disrupt the power and utility sector.

Source: Battery storage: The next disruptive technology in the power sector | McKinsey & Company

This older article by Paolo D’Aprile (August 2016) has good economic insight into the extreme segmentation of electricity markets ane their suitability for batterry or other storage of energy.

Energy storage can make money right now. Finding the opportunities requires digging into real-world data.

Source: The new economics of energy storage | McKinsey & Company

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Posted in entrepreneurship, Logistics, Sustainability

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De-Risking Oil Tanker Investment Decisions

Posted on May 12, 2017 by | Leave a comment

MIT students supervised by Dr Ioannis Lagoudis have come up with an analysis of tanker ownership buying or leasing.  This is a summary of the study.

A simulation study was made, based on a decision tree that covers chartering (leasing) a time charter or voyage charter (per trip), and buying a new or second hand vessel, and various horizon lengths.

It also discusses the risks.  Outcomes seem to show that under their assumptions, time charter is the least risky strategy.

It isn’t profound, but it is a very nice analysis.

 

 

Source: De-Risking Oil Tanker Investment Decisions

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Posted in Logistics, Managerial Econ, Shipping, Strategy

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The Break Even Cost For Shale Oil

Posted on December 2, 2016 by | Leave a comment

Some more recent data and an excellent explanation of why the break even cost for shale oil is a moving target. Especially useful is the description of the horizontal drilling technique.

This explains why US shale oil production did not go down like the Saudis thought it would when recently (2015) they tried to pump more oil to capture market share from the US and others as world prices fell. It turned out to be hard to drive out shale oil producers.

151019tesfrackingdemo

screenshot-www-forbes-com-2016-12-02-11-02-03  What is the break even cost for shale oil? That depends on a number of factors, and it is a moving target.

Source: The Break Even Cost For Shale Oil

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Posted in Investing, Production Operations, Supply Chains

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