Energy and Environment

Article

Two Meetings That Can Shape Oil Markets

Authors: Michael A. Levi and Edward Morse
Barron's

As climate plays a growing role in energy markets, serious energy analysis can no longer choose to focus only on traditional energy economics and geopolitics, write Michael Levi and Ed Morse. Policymakers, analysts, companies, and investors that deal in traditional energy will need to become much more sophisticated in their understanding of climate policy.

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Primary Sources

Paris Agreement

Global leaders including the United States participated in the Paris Climate Change Conference (also called Conference of the Parties 21, or COP21), which took place November 30 to December 11, 2015. They extended negotiations one day and 195 nations adopted the Paris Agreement (FCCC/CP/2015/L.9/Rev.1). According to the UN's press release, the agreement's "main aim is to keep a global temperature rise this century well below 2 degrees Celsius and to drive efforts to limit the temperature increase even further to 1.5 degrees Celsius above pre-industrial levels."

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Foreign Affairs Article

Beyond Break-Even Prices

Author: Michael A. Levi

When oil prices plunged in 2014, many analysts predicted that major exporters would have to drastically cut supply or else risk fiscal and geopolitical instability. Michael Levi explains why these predictions have been proven wrong.

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Other Report

Fiscal Breakeven Oil Prices: Uses, Abuses, and Opportunities for Improvement

Authors: Blake Clayton and Michael A. Levi

Fiscal "breakeven" oil prices have become popular among analysts and decision-makers as indicators of oil-producing countries' economic and political stability, but there are limits to the insights that breakeven prices provide. Blake Clayton and Michael A. Levi assess the potential value and most important pitfalls involved in using fiscal breakeven oil prices.

 

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