Energy Inc agenda.doc.doc

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Energy Inc agenda.doc.doc

  1. 1. LAW 5397, Energy Inc., 144 TUII Dr. Michelle Michot Foss – Instructor ENERGY INC. AGENDA (Subject to Change) Energy Inc. Course Materials All course materials are available online from the IELE Web site or from other Web sites as designated in this agenda. To access Energy Inc. online course materials provided by your instructor, go to the IELE Web site, click on Energy and Environment Courses and Curricula, click on the Energy Inc. logo, and enter the login and password information provided by the instructor. www.energy.uh.edu Throughout this agenda, online materials from the Energy Inc. site are designated with . NOTE that not every online folder has materials. Obviously, only review materials that are online. Principle Web Reference Materials for Course A number of reference Web sites are provided for this course. You should become familiar with these sites. Abundant resources exist throughout Web public domains for your projects and assignments. Indeed, there is almost TOO MUCH information! Certainly, there is more information than we can possibly process during one semester. Required materials are noted in this agenda. You should review these for class discussions. Optional materials are not required, but browsing these will help you participate in class discussions and enrich your experience. In addition, “snap assignments” (see Rules of the Road) will draw from both required and optional materials, as noted in each assignment. For your team projects, you should build a large and diverse knowledge base. A primary benefit of this course is that you will compile an “energy library” for use well beyond your immediate needs this semester. U.S. Energy Information Administration (U.S. EIA). Get to know and love the EIA Web site! Includes up-to-date Country Analysis Briefs (CABs) and fact sheets, special reports and links to other Web sites, including the CIA Factbook for international risk assessment. Used for entire course. www.eia.doe.gov • Annual Energy Review (AER). This is one of your principal sources of historical data for the course. You can obtain data on specific sectors or download the entire (huge) document for the current year. It’s best to access sections relevant to each part of our course. Note the Glossary if you are not familiar with energy terminology as well as useful conversion factors. http://www.eia.doe.gov/emeu/aer/contents.html • International Energy Annual (IEA; this acronym also stands for the International Energy Agency in Paris, France, of which the U.S. is a member through the U.S. Department of Energy). This also is one of your principal historical data sources for the course. Again, you can download the entire document, or sections relevant to each part of our course. Note the Glossary if you are not familiar with energy terminology. Energy Inc. Agenda – Page 1 Institute for Energy, Law & Enterprise, University of Houston, www.energy.uh.edu
  2. 2. http://www.eia.doe.gov/emeu/iea/contents.html • Country Analysis Briefs (CABs). Important links to other Internet sites that provide valuable information on specific countries. http://www.eia.doe.gov/emeu/cabs/contents.html • Annual Energy Outlook (AEO). Most recent available long term analysis and forecasts, U.S. (you may want to download the current, 2003 report) http://www.eia.doe.gov/oiaf/aeo/contents.html • International Energy Outlook (IEO). Most recent available long term analysis and forecasts, international. http://www.eia.doe.gov/oiaf/ieo/preface.html • World Energy Balances. Supply-demand balances for individual countries. http://www.eia.doe.gov/emeu/world/country/countrybal.html • State Data. Recent data for all 50 states. http://www.eia.doe.gov/emeu/states/_states.html BP Statistical Review of World Energy. You can download the entire workbook or specific sections as well as Excel spreadsheet data. Premier corporate publication on energy. Good source for all aspects of the course. http://www.bp.com/worldenergy/ American Petroleum Institute. Good selection of policy and educational materials on their site. http://www.api.org Naturalgas.org (Natural Gas Supply Association). The best natural gas industry resource site. You should also use this site for background on operations across the oil and gas value chains. http://www.naturalgas.org Institute for Energy, Law & Enterprise. Location for electric power industry background information, especially for Texas. Download Guide to Electric Power in Texas and our white paper, Electricity Industry Restructuring in Texas-A Status Report (go to our Publications page). http://www.energy.uh.edu/publications.asp Our Web site is also a key location for liquefied natural gas (LNG) industry information. http://www.energy.uh.edu/lng MODULE I. WORLD ENERGY OVERVIEW – GLOBAL SCAN How does Energy Inc. “fit” into the world of energy? Part A: Course Background • Course background and objectives, “rules of the road,” semester agenda • “Global scan” of world energy trends, outlooks, developments, energy industry organization Required • U.S. EIA, AER, Energy Perspectives: Trends and Milestones, 1949-2002 http://www.eia.doe.gov/emeu/aer/pdf/perspectives.pdf • U.S. EIA, CABs: United States http://www.eia.doe.gov/emeu/cabs/usa.html (for a very long term view, check out Energy in the United States, 1635 to 2000, http://www.eia.doe.gov/emeu/aer/eh/frame.html) • Most recent U.S. EIA, OPEC Fact Sheet Energy Inc. Agenda – Page 2 Institute for Energy, Law & Enterprise, University of Houston, www.energy.uh.edu
  3. 3. http://www.eia.doe.gov/cabs/opec.html  Merrill Lynch, How to Read A Financial Report, Class Info folder, online course materials  Review Module IA folder, online course materials Optional • U.S. EIA, AEO – Overview http://www.eia.doe.gov/oiaf/aeo/contents.html • U.S. EIA, IEO – Highlights http://www.eia.doe.gov/oiaf/ieo/preface.html Part B: Overview of the Energy Value Chains • The energy value chain concept, U.S. energy flows • Energy industry organization – key business segments, economics and financial performance • Introducing “Energy Inc.” • Overview/discussion on energy policy and politics: environment, community, international relations Required • U.S. EIA, AER, Energy Flow Diagrams – Petroleum, Natural Gas, Electricity. http://www.eia.doe.gov/emeu/aer/contents.html • U.S. EIA, Performance Profiles of Major Energy Producers (most recent available). You can also access previous editions online. http://www.eia.doe.gov/emeu/perfpro/index.html The EIA collects financial data from a sample of energy companies each year and compiles trends. This link provides background on the Financial Reporting System. http://www.eia.doe.gov/emeu/perfpro/index.html  Review Energy Inc. industry matrix, Energy Inc. folder, online course materials  Review materials in Module IB folder, online course materials  International Energy Agency, 2003 World Energy Investment Outlook, IEA folder, online course materials Optional • U.S. EIA AEO, Issues in Focus and Legislation and Regulations http://www.eia.doe.gov/oiaf/aeo/ • White House, National Energy Policy Plan http://www.whitehouse.gov/energy/ MODULE II. OIL AND GAS EXPLORATION AND PRODUCTION What is Energy Inc.’s core oil and gas E&P business focus? Part A: Discovery • The discovery process and economics • Scarce resources: Do we have enough? Required • U.S. EIA, AEO, Oil and Natural Gas Projections • U.S. EIA Performance Profiles, all sections pertaining to oil and gas exploration and production results • “Betting the Planet,” New York Times Magazine, hard copy only, provided by instructor  Review Module IIA folder, online course materials Energy Inc. Agenda – Page 3 Institute for Energy, Law & Enterprise, University of Houston, www.energy.uh.edu
  4. 4. Optional • Go to ChevronTexaco Learning Center for A Petroleum Prospecting Primer. http://www.chevron.com/learning_center/ • Go to Naturalgas.org for Overview of Natural Gas (all content) and Natural Gas – From Wellhead to Burnertip for Exploration, Extraction, Production http://www.naturalgas.org/ • Go to API for background on oil and gas exploration http://api-ec.api.org/policy/index.cfm?bitmask=001001002000000000 Part B: Oil and Gas Field Services • The role of oil and gas field services • Business and strategic considerations for this sector – Re-visiting Shell’s reserves downgrade (Shell Oil report charts and Reuters on Kashagan) Required • U.S. EIA, AER, review data on oil services activity in Energy Resources section (drilling, well completions, seismic activity, expenditure trends) http://www.eia.doe.gov/emeu/aer/contents.html  Review materials in Module IIB folder, online course materials (Spears Market Report) Part C: E&P Politics, Policy and Trends • Politics, policy and market trends for the E&P business segment, U.S. and international Required • U.S. EIA, OPEC fact sheet  Review materials in Module IIC folder, online course materials • Independent Petroleum Association of America (IPAA), fact sheets on access for resource development and the international petroleum market – state of the oil and gas industry http://www.ipaa.org/govtrelations/factsheets/NaturalGasFutureDemand.asp http://www.ipaa.org/govtrelations/factsheets/UnderstandingWorldPetro.asp • U.S. EIA AEO, Issues in Focus and Legislation and Regulation, focus on E&P http://www.eia.doe.gov/oiaf/aeo/ • White House, NEPP, E&P related sections • U.S. EIA IEO – World Oil Markets and Natural Gas, focus on E&P http://www.eia.doe.gov/oiaf/ieo/preface.html  IEA, 2003 World Energy Investment Outlook, slides on oil and natural gas, IEA folder, online course materials MODULE III. THE OIL VALUE CHAIN What are Energy Inc.’s key oil value chain issues? Part A: From Discovery to Your Car • Business process issues: From discovery to your car • Discussion on worldwide oil industry restructuring: The business arguments for and against vertical integration, economics of the refining and marketing businesses Required • U.S. EIA, Performance Profiles, all sections related to downstream oil (refining and marketing) results • Handouts on refining processes, hard copy only, provided by instructor  Review Module IIIA folder, online course materials Energy Inc. Agenda – Page 4 Institute for Energy, Law & Enterprise, University of Houston, www.energy.uh.edu
  5. 5. Optional • Chevron Learning Center. What is a refinery? (including subsections, a simple illustration of refinery processes and A Quick Lesson on Refinery Economics). http://www.chevron.com • American Petroleum Institute, About Oil and Natural Gas. Extensive background information on how we use oil and gas. http://api-ec.api.org/about/index.cfm?bitmask=001002000000000000 Part B: Politics and Policy in the Oil Value Chain • Politics and policy in the oil value chain: What should a national energy strategy include? • Considerations outside of the U.S. Required  Review Module IIIB folder, online course materials • Review the OPEC Fact Sheet • API, Policy Issues, taxes and motor fuels http://api-ec.api.org/policy/index.cfm?bitmask=001001005000000000 http://api-ec.api.org/policy/index.cfm?bitmask=001001006000000000 • U.S. EIA AEO – Legislation and Regulation and Issues in Focus. Look for all content on environmental issues pertaining to oil refining and marketing • U.S. EIA IEO – Go to World Oil Markets, Natural Gas, Transportation Energy Use and Environmental Issues and World Energy Use, all sections pertaining to oil refining and end use • White House NEPP, oil refining and transportation related sections MODULE IV. THE NATURAL GAS VALUE CHAIN What are Energy Inc.’s key natural gas value chain issues? Part A: From Discovery to Burnertip – Your Furnace, Your Local Power Plant or Your Stuff • Business process issues: from discovery to end use (wellhead to burner tip); wellhead issues – the case of El Paso Corp.’s reserves downgrade • Prospects and market trends, considerations outside of the U.S. Required • Go to Naturalgas.org. Use the sections Overview of Natural Gas (History), Natural Gas – From Wellhead to Burnertip (Transport, Storage, Distribution, Marketing), Business Overview and Natural Gas Regulation. http://www.naturalgas.org/ • Go to API, About Oil and Natural Gas • U.S. EIA, AEO – all sections related to natural gas • U.S. EIA IEO – Go to Natural Gas  Review Module IVA folder, online course materials  Review IEA 2003 World Energy Investment Outlook, IEA folder, online course materials, content on natural gas Part B: Reconstituting the U.S. Natural Gas Industry • Politics and policy: Reconstituting the U.S. natural gas industry, from wellhead to burnertip, and implications • What should a national energy strategy include for natural gas? Required Energy Inc. Agenda – Page 5 Institute for Energy, Law & Enterprise, University of Houston, www.energy.uh.edu
  6. 6. • Go to Naturalgas.org, History, Business Overview, Natural Gas Regulation. • U.S. EIA AEO – Go to Issues in Focus and Legislation and Regulation • Review natural gas related sections in the National Energy Policy Plan (White House site)  Review Module IVB folder, online course materials You will need the links below for at least one Snap Assignment: • U.S. EIA – Natural Gas 1998: Issues and Trends. Last complete analysis of natural gas industry developments. SKIM ONLY to familiarize yourself with the current picture for the industry. http://tonto.eia.doe.gov/dnav/ng/ng_sum_analysis.asp • U.S. EIA, Natural Gas 1996: Issues and Trends; Chapter 3, The Emergence of Market Centers and Hubs. (Go to Natural Gas, Analysis Publications) http://tonto.eia.doe.gov/dnav/ng/ng_sum_analysis.asp • U.S. EIA, Natural Gas 1995: Issues and Trends; Chapter 3, Transportation Markets http://tonto.eia.doe.gov/dnav/ng/ng_sum_analysis.asp • U.S. EIA, Natural Gas 1994: Issues and Trends; Chapter 2, The Natural Gas Industry Under Order 636; Chapter 3, Natural Gas Contracting) http://tonto.eia.doe.gov/dnav/ng/ng_sum_analysis.asp • U.S. EIA, Status of Natural Gas Residential Choice Programs by State. Table of state-by-state initiatives. http://www.eia.doe.gov/oil_gas/natural_gas/restructure/restructure.html • Serious students of the policy restructuring process will want to access the Federal Energy Regulatory Commission (FERC) Web site. Go to Gas for background and recent and past FERC actions. http://www.ferc.fed.us/ MODULE V. THE ELECTRIC POWER VALUE CHAIN What are Energy Inc.’s key electric power value chain issues? Part A: From Generation to Your Light Switch • Business process issues: From generation to end use • Considerations outside of the U.S. Required • IELE, Guide to Electric Power in Texas, Third Edition and White Paper on Texas Electric Choice http://www.energy.uh.edu/publications.asp • U.S. EIA, Restructuring of the Electric Power Industry. Although this is presented as “A Capsule of Issues and Events” it is quite a good primer on how the competitive industry will work. See other materials below for evolution of competition. Note the section on Generating Components: Key Terms and Definitions (note that these have been archived by EIA). http://www.eia.doe.gov/cneaf/electricity/chg_str/booklet/electbooklet.html • U.S. EIA AEO – review all content on electricity and related environmental issues • U.S. EIA IEO – Go to Electricity  Review IEA 2003 World Energy Investment Outlook, IEA folder, online course materials, content on electric power  Review Module VA, online course materials Part B: Reconstituting the U.S. Electric Power Industry • Politics and policy: Restructuring the U.S. electric power industry, the case of California-itis • What should a national energy strategy include for electric power? Energy Inc. Agenda – Page 6 Institute for Energy, Law & Enterprise, University of Houston, www.energy.uh.edu
  7. 7. Required • IELE, Guide to Electric Power in Texas and White Paper on Texas Electric Choice • At Texas Electric Choice, look at how you would choose your own retail electric provider (REP) (hint – possible snap assignment!). Also note the wealth of resource materials on this web site (check the Resource Center). http://www.powertochoose.com/ U.S. EIA, Restructuring of the Electric Power Industry. • U.S. EIA, The Changing Structure of the U.S. Electric Power Industry 1999: Mergers and Other Corporate Combinations. http://www.eia.doe.gov/cneaf/electricity/corp_str/corpcomb.html • U.S. EIA AEO – Go to Legislation and Regulation and Issues in Focus, review all content related to electric power http://www.eia.doe.gov/oiaf/aeo/contents.html  Review Module VB folder, online course materials • Review electric power related sections in the National Energy Policy Plan (White House site) Recommended, not required (but may be used for a snap assignment): • U.S. EIA, Changing Structure of the Electric Power Industry: Selected Issues, 1998 http://www.eia.doe.gov/cneaf/electricity/chg_str_issu/summary/chg_str_issu_sum.html • U.S. EIA, Status of State Electric Industry Restructuring Activity. Table of state-by-state initiatives. http://www.eia.doe.gov/cneaf/electricity/chg_str/regmap.html • The patchwork of state programs is complex. The National Association of Regulatory Utility Commissioners (NARUC) Web site is a good place to link to individual state public utility regulatory commissions for details. http://www.naruc.org/ • Serious students of the policy restructuring process will want to access the Federal Energy Regulatory Commission (FERC) Web site. http://www.ferc.fed.us (Go to Electricity for recent and past FERC actions; go to RTOs for recent dockets on regional transmission organizations and Standard Market Design for the latest on this most complex of FERC’s electric power activities) VI. ENERGY TRADING, MARKETING AND SERVICES What are Energy Inc.’s key energy trading, marketing and energy services issues? • Why we need ETMS and the role of wholesale markets • How it works and strategic considerations • Enroned! And the implications. Required • New York Mercantile Exchange (Go to the NYMEX Welcome page and click on How the Exchange Works. From the left-hand banner go to Markets and click on Futures and Options. Review descriptions of all energy contracts. Or, go to Settlement Data and you can view descriptions of the contracts as well as quotes, charts and settlement data by commodity. Try to do all of this on a fast Internet connection – the streaming NYMEX ticker slows things down.) http://www.nymex.com/ • Review Module VI folder, online course materials • By far, the best treatment on Enron was in Business Week http://www.businessweek.com/magazine/toc/01_51/B3762magazine.htm Energy Inc. Agenda – Page 7 Institute for Energy, Law & Enterprise, University of Houston, www.energy.uh.edu
  8. 8. VII. ENVIRONMENT AND ALTERNATIVE FUELS What are Energy Inc.’s key environment and alternative fuels issues? • Environmental protection in the energy industries • Alternative energy technologies • What are companies doing? The corporate sustainability programs. Required • U.S. EIA, AEO and IEO – all sections on issues, legislation/regulations, environment and world energy use • “Human Dominated Ecosystems,” Science, provided in hard copy by instructor • Houston Advanced Research Center, Mitchell Center for Sustainable Development, Corporate Incentives and Environmental Decision Making http://www.harc.edu/mitchellcenter/corporations/index.html  Review Module VII folder, online course materials • Cato Institute, The Increasing Sustainability of Conventional Fuels http://www.cato.org/pubs/pas/pa341txt.pdf • Cato Institute, Renewable Energy: Not Cheap, Not Green http://www.cato.org/pubs/pas/pa-280.html VIII. INTERNATIONAL ENERGY PROJECT DEVELOPMENT What are Energy Inc.’s key international operations and business development issues? Part A: Are Market Transformations Skin Deep? • Worldwide trends – the emergence of free markets for energy Required • U.S. EIA, Privatization and Globalization of Energy Markets. This is a bit dated, but still a good overview. More recent information on specific countries can be obtained from the CABs. http://www.eia.doe.gov/emeu/pgem/contents.html • U.S. EIA – Electricity Reform Abroad and U.S. Investment. Also a bit dated, but still good. http://www.eia.doe.gov/emeu/pgem/electric/contents.html  Review Module VIIIA folder, online course materials Part B: International Energy Project Development • International energy project finance: upstream vs. downstream considerations • The art of evaluating and managing political/country risk Required • Selections from Financing Energy Projects in Emerging Economies provided by instructor • “The End of Corporate Imperialism,” Harvard Business Review provided by instructor • U.S. EIA, World Energy Areas to Watch http://www.eia.doe.gov/emeu/cabs/hot.html • U.S. EIA, CABs on specific countries/regions to be determined.  Review Module VIIIB folder, online course materials Optional Energy Inc. Agenda – Page 8 Institute for Energy, Law & Enterprise, University of Houston, www.energy.uh.edu
  9. 9. • U.S. Central Intelligence Agency World Factbook. Our main reference for background information to be used in country analysis and political risk assessment. http://www.odci.gov/cia/publications/factbook/index.html Recommended, not Required (but very useful for international new ventures projects) • Organizations that monitor human rights, civil freedoms and other issues: http://www.oneworld.net/ http://www.transparency.de/ http://www.freedomhouse.org/ http://www.doctorswithoutborders.org/ (and while there, you can make a donation) ENERGY INC. SCHEDULE (Subject to Change) TOPICS TARGET ASSIGNMENTS DATES MODULE I. WORLD ENERGY OVERVIEW Part A: Course Background Jan 26 Part B: Overview on the Energy Value Chains Feb 2 MODULE II: OIL AND GAS EXPLORATION AND PRODUCTION Part A: Discovery, Part I Feb 9 Part B: Oil and Gas Field Services Feb 9 Part C: E&P Politics, Policy and Trends Feb 9 Part A: Discovery, Part II, investment analysis Feb 16 Snap 1 Assignment Due MODULE III: THE OIL VALUE CHAIN Part A: From Discovery to Your Car Feb 23 Part B: Politics and Policy in the Oil Value Chain Feb 23 MODULE IV: THE NATURAL GAS VALUE CHAIN Part A: From Discovery to Burnertip Mar 1 Competitor Reports Due Part B: Reconstituting the U.S. Natural Gas Mar 8 Energy Inc. Team Proposals Due Industry Spring Break Mar 15 MODULE V: THE ELECTRIC POWER VALUE CHAIN Part A: From Generation to Your Light Switch Mar 22 Part B: Reconstituting the U.S. Electric Power Mar 29 Snap 2 Assignment Due Industry SUMMARY AND REVIEW – GAS/POWER If needed VALUE CHAIN MODULE VI: ENERGY TRADING, Apr 5 MARKETING AND SERVICES MODULE VII: ENVIRONMENT AND Apr 12 Snap 3 Assignment Due ALTERNATIVE FUELS MODULE VIII: INTERNATIONAL ENERGY PROJECT DEVELOPMENT Part A: Are Market Transformations Skin Deep? Apr 19 Part B: International Energy Project Apr 26 Development Final Class May 3 Energy Inc. Board of Directors Meeting Presentations Exam Period – NO FINAL EXAM May 5 Final Team Project Reports (due by 5pm on Energy Inc. Agenda – Page 9 Institute for Energy, Law & Enterprise, University of Houston, www.energy.uh.edu
  10. 10. date of final exam for this class) Energy Inc. Agenda – Page 10 Institute for Energy, Law & Enterprise, University of Houston, www.energy.uh.edu

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