Oilfeeds.com

With our financial system in turmoil, no one is paying attention to the fact that oil is down another $5 and change.  As shown in the chart below, after being up 51.38% at the start of July, the commodity is now down on the year.  As oil skyrocketed, so many companies lowered guidance recently after factoring in a large increase in energy costs.  With oil now back to break even for the year, corporate profits should benefit.

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Last week, Mark Solheim of Kiplinger’s Personal Finance Magazine,posted an article on Seeking Alpha that really helped clarify the economic issues I’ve been writing about for several weeks. His article, backed up by the analytical strengths of the Kiplinger organization, noted that most HEVs offer limited economic benefit to their owners. My reaction was the predictable question:

If HEVs offer marginal economics with NiMH batteries, how can they possibly pay with Li-ion batteries that cost significantly more per watt hour of energy storage?