Publications: Notes at the Margin

Petroleum's Bad Week (September 28, 2015)


Last week may just have been the worst for the fossil fuel industry ever, especially oil. The list of bad developments is long. Oil’s troubles began in a location not ordinarily associated with the energy industry: Wolfsburg, Germany. The German auto company headquartered there, Volkswagen, has just admitted it cheated on emissions tests for small diesel engines. Oil’s troubles were made worse Thursday when the California Air Resources Board (CARB) reaffirmed its Low Carbon Fuel Standard (LCFS) program. The fossil fuel industry’s problems grew more on Friday when China announced it would introduce a cap-and-trade program to reduce greenhouse gas emissions. Lastly, energy traders learned Monday that the European Union would issue final rules on its application of new commodity market regulations. This week's report discusses these developments and their market implications.


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