Publications

Lynn Cook of the Wall Street Journal writes that many smaller American oil firms are increasingly forgoing expensive shale fracking projects in favor of conventional drilling. Companies have been able to reactivate old wells and extract oil profitably at prices as low as $30 a barrel. WSJ

The Wall Street Journal reports that as U.S. natural gas exports begin to arrive in former Soviet-bloc countries, Russian energy companies are starting to fight back. While the U.S. hopes to loosen Russia’s dominance of the European energy market, Russian state-owned companies have been lowering prices, investing in liquefied natural gas facilities, and building new pipelines. WSJ

According to the Wall Street Journal, investors are grappling with increased financial-market volatility and declining performance as doubts about the administration’s legislative agenda emerge. Among the weakest performers in recent weeks are small, domestic firms who would stand to gain from significant tax reform and infrastructure spending. WSJ

The Wall Street Journal reports that discount clothing stores are proving surprisingly resilient even as the brick-and-mortar retail sector faces challenges from online shopping. Experts say that, while online retailers are continually gaining market share, consumers will continue to favor discount brick-and-mortar retailers as long as prices are competitive. WSJ

According to the Wall Street Journal, new research finds that older students tend to perform better academically. The researchers also found evidence to suggest that the oldest children are more likely to attend college and to graduate from a selective college than the youngest children in a given age cohort. WSJ

Diane Coyle of the Financial Times writes that the increasing concentration of U.S. tech firms is forcing economists to reconsider whether excessive market power is beneficial to consumers. While in the past greater monopoly power often led to higher prices for consumers, economists are unsure how the growing market power of tech firms will affect consumers. FT

David Harrison of the Wall Street Journal reports that Federal Reserve officials are increasingly divided over the timing of their next rate hike. As low inflation persists, some officials believe that the economy is undergoing a fundamental shift to a low-inflation era, while others believe that the tight labor market could cause a surge in inflation and overheat the economy. WSJ

According to the Wall Street Journal the Henry Hub spot price of natural gas is becoming the global natural gas benchmark. The growing prominence of the Henry Hub price of gas comes as U.S. natural gas exports reach countries all around the world, and experts believe that the U.S. will increasingly become the global price-setter. WSJ

In a Wall Street Journal op-ed., former Vice-Chairman of the Federal Reserve Alan Blinder writes that economic expansions “don’t die of old age,” and that there are no serious short-term threats to current economic expansion. Blinder also writes that, although the current expansion is the third-longest on record, economic indicators suggest that growth will continue for the foreseeable future. WSJ

According to the Wall Street Journal, the first topic being debated in the North American Free Trade Agreement (“NAFTA”) renegotiation is the process for settling trade disputes. Canada and Mexico have advocated for retaining the current process in which disputes are submitted to panels of experts who have the authority to overturn tariffs, while the U.S. wishes to eliminate these expert panels. WSJ

The Wall Street Journal reports that despite recent, robust consumer spending, U.S. households are taking on more debt and saving less. Higher debt levels and lower savings rates both could become problematic in the event of an economic downturn or a spike in interest rates, which in turn could weaken retail sales significantly. WSJ

According to the Financial Times, Federal Reserve Board Vice-Chairman Stanley Fischer says that recent efforts to reduce banking regulations are “dangerous and extremely short sighted.” Fischer also stated that while he believes burdensome regulations on small banks should be eased, the new rules governing large institutions should be left in place. FT

Danielle Paquette of the Washington Post writes that despite efforts to bring manufacturing jobs back to the United States, factory workers are quitting their jobs at the highest rate in a decade. Some of the quits are due to retirement and fears of automation, but many are leaving with hopes for better employment elsewhere sparked by the low national unemployment rate. WaPo

In a Washington Post op-ed, Oklahoma Senator James Lankford contends that the U.S. trade deficit is a sign of a strong economy and that the administration’s renegotiation of the North American Free Trade Agreement (“NAFTA”) should shift focus away from reducing it. Lankford argues that powerful economies are attractive foreign investment destinations and have higher per-capita purchasing power, two indicators of economic strength that nevertheless add to the trade deficit. WaPo