“Some people call it 'circle the drain.”
- Richard Kaufmann, New York Energy Czar,
on the inherent challenge of energy finance

"Time" might be energy's greatest challenge. For instance, electrons have a very short "use-it-or-lose-it" shelf life. Solar radiation from the sun can immediately convert into electrical power or heat, but the sun's energy that is stored in plants took millions of years to degrade into hydrocarbons. The climate is changing today because of greenhouse gases emitted years ago.

Energy finance has a similar problem with "time." For example, energy tech RD&D usually takes a long time (and a lot of patience) to commercialize, but investors want fast returns. 

The Energy Finance issue of Energy Today addresses a few challenges of energy banking, investment, and economics.

Recommended Articles

Robert Merton 
and the Effect of Time on Portfolio Choice

Robert Merton tried to address the problem of energy investments with his Nobel Prize winning "continuous-time" Black-Scholes economics equation. In this article, Professor Merton discusses how the continuous present value of an investment applies to energy. Or does it?

See also: Paul Romer - Conditional Optimism vs. Complacent Optimism

The New Frontier:
Opening the African Oil & Gas Industry

Africa is the last energy frontier. But the continent has a tendency to dash forecasts. In 2000, The Economist dubbed the African energy sector "hopeless," but the authors of this article see an old market opening up in new ways. Vast oil and gas reserves are beginning to transform the continent into a new global hub.

See also: Investments in Oil & Gas Set to Soar

Capitalism and Climate Change:
Carbon Engineering as a Case Study

There is inherent tension between capitalism and climate change. But, there are ways to mitigate these tensions. This article confronts some of these challenges by looking closely at a specific investment at the intersection of climate and capital: Carbon Engineering.

See also: How Bank of America Built a Green Revolution

Why Oil Markets Aren't Reacting
To Attacks On Tankers in the Persian Gulf

Tensions are rising in the Persian Gulf following a string of attacks on oil tankers over the last few months. But o​il markets have reacted to these events with a shrug and a yawn. 

See also: Global Energy Insecurity

See also: Peak Oil

News from the Society

The Editors of Energy Today welcome submissions of original articles for publication consideration. Please contact the editorial staff by email with questions or attach the proposed article as a Word document.