World Perspectives

Arbitraging Energy

Those in conventional energy markets believe that if not for its adverse politics, there are plenty of philosophers in Washington who would raise the prices paid by Americans for fossil fuels. After all, these creations of Mother Nature are dirty and, importantly, their low cost undermines the successful introduction of so-called "green" manmade energy sources. But, a cheap energy policy remains in place in the U.S., as the chart below illustrates. This has not only encouraged Americans to continue buying sport utility vehicles, but it also affects the composition of agricultural exports.One interesting impact is how food is being used to arbitrage differing energy policies. As noted in the chart below, U.S. exports of dried egg, dried eg...

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Summary of Futures

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From WPI Consulting

Weighing in on strategic realignment

WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.

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