Energy Economics

1. Presentation on the Book ‘Energy Economics’ by
Planck Foundation
Spotted On: Energy is Income & Energy as Guarantee
Energy Economics & Environment; MRET 202
Submitted to
A S M Ibrahim
Lecturer,
Institute of Energy
University of Dhaka

3. Topics to be Presented
Energy Economics
Energy Politics Energy is Income
Energy Finance Energy as
Guarantee

4. Energy is Income
Energy for a Nation
Cost
Cost + Income

5. Energy is Income
page: 02
• Energy not only makes a nation rich but also poor because of
its cost.
• Regarding the energy exploration ratio issue:
Energy production costs (Petroleum) in 1971 - 1 barrel / 73 barrel,
in 2009 - 1 barrel / 9 barrel.
• Despite seeing this Data is inconvenient Fossil fuel is the main
component of our energy policy.

6. Energy is Income
page: 03
• The new fuel less energy system will reduce this transfer
of wealth.
• The only reason governments don't make serious work of
national energy production is that their energy advisers
are working in the fossil exploring of nuclear fission
industry.
• Domestic energy production avoids energy imports,
energy imports that will be more expensive each year.
• Energy conservation can also been seen as income:
cutting in costs that otherwise burdens households and
businesses certainly can be seen as income.

7. Energy is Income
page: 04
• Energy in not only income for the large energy surplus nations
like Saudi Arabia or Iran, that was in the old fossil based
energy model.
• In the new fuel less energy model each nation can become
their own energy supplier: holding the still growing energy
component of the economy aboard in stead of delivering it
abroad.
• Energy drains or build economies. Preventing future capital
draining is more than income, it's recurring income, delivering
commutative over the years a huge capital earning model.
• Energy is Income is a very valid statement.

8. ENERGY as GUARANTEE
page-01
• Few days ago state issued guarantees were top level
guarantee.
• But not today
• What is Guarantee?
• Difference with Warranty.

9. ENERGY as GUARANTEE
page-02
• Treasure bonds of a nation are the indicator of the value of
state issued guarantees of that nation.
• But the market demand for western treasury bonds decline.
• So state issued guarantees of western nations have lost a lot
of their attraction in delivering real guarantees.
• State issued guarantees of nations that are treasury bond
market demand proven are a very powerful tool in finance.
• The western world has lost this very power fool tool.
• T.B.: Money source in a Capitalist state & tool of controlling
money.

10. ENERGY as GUARANTEE
page-03
Reason behind the decline attraction in guarantees
This decline of trust is due to several reasons:
1. Western nations are debt burdened.
2. Have a graying demographics i.e., lost their production
economy.
3. Haven't been able to realize their dreams of superiority in
knowledge culture.
4. Also western people are debt burdened*

11. ENERGY as GUARANTEE
Game Changer
page-05
• A nuclear solution: Fix short time only, worsened the problem
in the long run.
• Energy as ROI (Return on investment) concept: Worldwide all
Central Banks will gone use the Energy as ROI
– Can give them: rise instead of decline.
– For governments: rise of their debtor credibility.
– For Central Banks: rise of the market trust in their currency.

12. ENERGY as GUARANTEE
Game Changer
page-06
• Emerging states will certainly use their better credibility to
seize improve both their own national energy situation, as
well their global position on the high tech energy
products/parts market.
• China will install governmental product guarantee plans to
activate a national energy transition investment wave and it
will work.
• China will install governmental guarantee plans to initiate an
energy transition investment wave in its neighborhood to
insure more (by this mutual generated) renewable energy
delivery to its fast expanding (and thereby energy hungry)
economy.

13. ENERGY as GUARANTEE
Game Changer
page-07
• For large energy projects the project developer will be able to
demand governmental (or inter company parental)
guarantees of the contractor or supplier by making it one of
the tender specifications.
• The same can be said on inter corporate parental guarantees
(where the mother company guarantees the actual delivery,
specifications, function and maintenance of projects or
project parts.

14. ENERGY as GUARANTEE
page-04
Reason behind the decline attraction in guarantees
Printing Excess money to purchase their own
treasuries
capital market moves East
Currency decline/collapse
Governmental treasuries decline/collapse *
Bank defaults
Over stretched credit situations

15. ENERGY as GUARANTEE
page-07
• Energy as Guarantee is still (if the Energy as ROI model is
build-in) a concept capable of generating a massive energy
transition investment wave.

16. THE END