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					                                                          LAW 5397, Energy Inc., 215 TUII
                                                         Dr. Michelle Michot Foss – Instructor
                                                           ENERGY INC.
                                                      (Agenda, Subject to Change)




Welcome to Energy Inc.! Energy Inc. is a business and public policy course on the energy industries.
Our focus is on global energy markets and policy through the lens of a “virtual company,” Energy Inc.
Students are required to work in teams on investment projects across the energy value chains and compete
for capital budget from Energy Inc.’s management. Students also are required to complete individual
assignments, including a review of actual peer companies using financial data for benchmarking.

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. This link will take you directly.

    http://www.energy.uh.edu/energy_inc.asp

Each of the 8 modules in this course has an online folder (). These folders will contain, at minimum,
the slide presentations used in our class discussions. They may contain other background materials as
well, such as news clippings or special reports that may be required by the instructor or that serve as
supplemental material for the course. A main folder for Energy Inc. is also on the web site. This folder
contains essential background on our company – our latest financial data, analyst reviews and
presentations, annual capital expenditure (capex) targets, and so on. A folder for Class Info contains this
agenda, your Rules of the Road, and other materials.

You are encouraged to also make use of the IELE web site. You can obtain background on the Institute,
our projects and programs, your instructor, and find useful energy resource links.

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. Your “snap assignments” (see Rules of the
Road) may 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.



                                             Energy Inc. Agenda – Page 1
                  Institute for Energy, Law & Enterprise, University of Houston, www.energy.uh.edu
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.
    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/index.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



                                             Energy Inc. Agenda – Page 2
                  Institute for Energy, Law & Enterprise, University of Houston, www.energy.uh.edu
                 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
   http://www.eia.doe.gov/cabs/opec.html
 Class Info
 Energy Inc.
 Module I
 International Energy Agency, 2003 World Energy Investment Outlook
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
 Introducing “Energy Inc.”
 The energy value chain concept, U.S. energy flows
 Energy industry organization – key business segments, economics and financial performance
 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
 Energy Inc.
 Module I
Optional
 White House, National Energy Policy Plan
   http://www.whitehouse.gov/energy/




                                            Energy Inc. Agenda – Page 3
                 Institute for Energy, Law & Enterprise, University of Houston, www.energy.uh.edu
               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
 Energy Inc.
 Module II
 IEA, 2003 World Energy Investment Outlook

Optional
 Go to ChevronTexaco Learning Center for What is crude oil? and 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
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
 Energy Inc.
 Module II

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
 Independent Petroleum Association of America (IPAA), fact sheets on access for resource
   development and the international petroleum market
   http://www.ipaa.org/govtrelations/factsheets/NaturalGasFutureDemand.asp
   http://www.ipaa.org/govtrelations/factsheets/UnderstandingWorldPetro.asp
 White House, NEPP, E&P related sections
 U.S. EIA IEO – World Oil Markets and Natural Gas
   http://www.eia.doe.gov/oiaf/ieo/preface.html
 Module II
 IEA, 2003 World Energy Investment Outlook


                                            Energy Inc. Agenda – Page 4
                 Institute for Energy, Law & Enterprise, University of Houston, www.energy.uh.edu
                               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
 Energy Inc.
 Module III

Optional
 Chevron Learning Center. What is a refinery? (including all links) and What is a service station?
   (including all links).
   http://www.chevron.com/learning_center/
 American Petroleum Institute, About Oil and Natural Gas. Extensive background information on
   how we use oil and gas and related topics.
   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?
 The U.S. within the global context
Required
 Review the current 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 IEO – all sections pertaining to oil refining and end use in World Energy and Economic
   Outlook and World Oil Markets
 White House NEPP, oil refining and transportation related sections
 Module III



                       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 and Your Stuff
 Business process issues: from discovery to end use (wellhead to burner tip)
 Prospects and market trends, the U.S. within the global context
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

                                            Energy Inc. Agenda – Page 5
                 Institute for Energy, Law & Enterprise, University of Houston, www.energy.uh.edu
 U.S. EIA, AEO – all sections related to natural gas
 U.S. EIA IEO – Go to Natural Gas
 Energy Inc.
 Module IV
 IEA 2003 World Energy Investment Outlook

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
 Go to Naturalgas.org, History, Business Overview, Natural Gas Regulation.
 Review natural gas related sections in the National Energy Policy Plan (White House site)
 Module IV
You will need the links below for at least one Snap Assignment:
 From the U.S. EIA natural gas analysis page, http://tonto.eia.doe.gov/dnav/ng/ng_sum_analysis.asp:
    LNG Markets and Uses: June 2004 and the initial report, U.S. LNG Markets and Uses (note
        references to UH IELE reports)
    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.
    Natural Gas 1996: Issues and Trends; Chapter 3, The Emergence of Market Centers and Hubs
        and Natural Gas Market Centers and Hubs: A 2003 Update
    Natural Gas 1995: Issues and Trends; Chapter 3, Transportation Markets
    Natural Gas 1994: Issues and Trends; Chapter 2, The Natural Gas Industry Under Order 636;
        Chapter 3, Natural Gas Contracting
 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 Industries/Gas for background and recent and
   past FERC actions.
   http://www.ferc.gov/


                     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
 Electric power outside of the U.S.
Required
 IELE, Guide to Electric Power in Texas, Third Edition (2003) and Electricity Restructuring in
   Texas – A Status Report
   http://www.energy.uh.edu/publications.asp
 Texas Electric Choice Resource Center
   http://www.powertochoose.org/resources/default.asp
 Public Utility Commission of Texas Publications
   http://www.puc.state.tx.us/publications/index.cfm



                                            Energy Inc. Agenda – Page 6
                 Institute for Energy, Law & Enterprise, University of Houston, www.energy.uh.edu
 Electric Reliability Council of Texas, Electric Restructuring and News Room for extensive
  materials on our state program
  http://www.ercot.com/Index.htm
 U.S. EIA, electricity restructuring fact sheets
  http://www.eia.doe.gov/cneaf/electricity/page/fact_sheets/facts.html
 U.S. EIA AEO – review all content on electricity and related environmental issues
 U.S. EIA IEO – Go to Electricity
 Energy Inc.
 IEA 2003 World Energy Investment Outlook
 Module V

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?
Required
 All resources in Part A
 U.S. EIA, Changing Structure of the Electric Power Industry: 2000 Update
   http://www.eia.doe.gov/cneaf/electricity/chg_stru_update/update2000.html
 U.S. EIA AEO – review all content related to electric power
 Review electric power related sections in the National Energy Policy Plan (White House site)
 Cato Institute, Rethinking Electricity Restructuring
   http://www.cato.org/pub_display.php?pub_id=2609
 Review Module VB folder, online course materials
Recommended, not required (but may be used for a snap assignment):
 At Texas Electric Choice, look at how you would choose your own retail electric provider (REP)
   (hint – possible snap assignment!).
 U.S. EIA, The Changing Structure of the U.S. Electric Power Industry 1999: Mergers and
   Other Corporate Combinations. Dated, but raises many of the still current issues with respect to
   industry organization.
   http://www.eia.doe.gov/cneaf/electricity/corp_str/corpcomb.html
 U.S. EIA, The Changing Structure of the U.S. 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/restructure.pdf
 U.S. EIA, State Renewable Energy Requirements and Goals: Status Through 2003
   http://www.eia.doe.gov/oiaf/analysispaper/rps/index.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/displaycommon.cfm?an=15
 Serious students of the policy restructuring process will want to access the Federal Energy
   Regulatory Commission (FERC) Web site.
   http://www.ferc.gov/ (Go to Industries/Electricity for recent and past FERC actions; go to Regional
   Transmission Organizations for recent dockets on regional transmission organizations and
   Standard Market Design for the latest on this most complex of FERC’s electric power activities)
 Module V




                                            Energy Inc. Agenda – Page 7
                 Institute for Energy, Law & Enterprise, University of Houston, www.energy.uh.edu
                    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 About the
   Exchange/How the Exchange Works. Go to Glossary for essential terms and concepts. Go to
   Markets and click on Energy. Review descriptions of all energy contracts. Go to Markets/Market
   Data to see current and historical quotes, charts and settlement data by commodity.
   http://www.nymex.com/
 By far, the best treatment on Enron was in Business Week
   http://www.businessweek.com/magazine/toc/01_51/B3762magazine.htm
 Energy Inc.
 Module VI

                       VII. ENVIRONMENT AND ALTERNATIVE FUELS

What are Energy Inc.’s key environment and alternative fuels issues?
 Environmental protection in the energy industries – the debate
 Alternative energy technologies
 What are companies doing? The corporate sustainability programs – window dressing or real stuff?
Required
 U.S. EIA AEO and IEO – all sections on environment and U.S. and world energy use
 MIT Technology Review, Global Warming Bombshell
   http://www.technologyreview.com/articles/04/10/wo_muller101504.asp?trk=nl
 Corrections to the Mann et al (1998) Proxy Database and Northern Hemisphere Average
   Temperature Series – under Supporting Materials, start with Background, Results, Frequently
   Asked Questions (and Answers)
   http://www.uoguelph.ca/~rmckitri/research/trc.html
 Taken by Storm
   http://www.takenbystorm.info/index.html
 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
 FERC Proposes Rule for Wind Power Interconnection
   http://www.ferc.gov/press-room/pr-current/01-19-05-wind.asp
 Houston Advanced Research Center, Mitchell Center for Sustainable Development, Corporate
   Incentives and Environmental Decision Making
   http://www.harc.edu/mitchellcenter/corporations/index.html
 Energy Inc.
 Module VII




                                            Energy Inc. Agenda – Page 8
                 Institute for Energy, Law & Enterprise, University of Houston, www.energy.uh.edu
                   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
 Module VIII
 IEA 2003 World Energy Investment Outlook

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 announced.
 Module VIII
Optional
 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                            Jan 24
OVERVIEW
Part A: Course Background
Part B: Overview on the Energy Value Chains       Jan 31
MODULE II: OIL AND GAS                            Feb 7           Snap 1 Assignment Due
EXPLORATION AND PRODUCTION Part
A: Discovery, Part I
Part B: Oil and Gas Field Services                Feb 7
Part C: E&P Politics, Policy and Trends           Feb 7
Part A: Discovery, Part II, investment analysis   Feb 14          Mr. Fisoye Delano, UH IELE
MODULE III: THE OIL VALUE CHAIN                   Feb 28          Competitor Reports Due; Bill Leffler or Blake

                                              Energy Inc. Agenda – Page 9
                   Institute for Energy, Law & Enterprise, University of Houston, www.energy.uh.edu
                  TOPICS                           TARGET                          ASSIGNMENTS
                                                    DATES
Part A: From Discovery to Your Car                                Eskew (tentative)
Part B: Politics and Policy in the Oil Value
Chain (Downstream)
MODULE IV: THE NATURAL GAS                       Mar 7
VALUE CHAIN
Part A: From Discovery to Burnertip - review
Part B: Reconstituting the U.S. Natural Gas      Feb 21/Mar       Follow up to Feb 21 session with Gail Watkins,
Industry – review and business considerations    7                Akin, Gump and Charles Moore, LeBoeuf, Lamb
                                                                  and U Alberta group

                                                                  Energy Inc. Team Proposals Due
Spring Break                                     Mar 14
MODULE V: THE ELECTRIC POWER                     Mar 21           Dr. Gürcan Gülen, UH IELE; Snap 2 Assignment
VALUE CHAIN                                                       Due (issued March 9)
Part A: From Generation to Your Light Switch
Part B: Reconstituting the U.S. Electric Power
Industry (overview)
Part B: Reconstituting the U.S. Electric Power   Mar 28           Kathy Magruder (invited)
Industry – Electric Power Business
Considerations
SUMMARY AND REVIEW –                             Mar 28           If needed
GAS/POWER VALUE CHAIN
MODULE VI: ENERGY TRADING,                       Apr 4            Deniese Palmer Huggins, Prudential (invited)
MARKETING AND SERVICES
MODULE VII: ENVIRONMENT AND                      Apr 11           Snap 3 Assignment Due (issued April 6); Rob
ALTERNATIVE FUELS                                                 Bradley, IELE (invited)
MODULE VIII: INTERNATIONAL                       Apr 18
ENERGY PROJECT DEVELOPMENT
Part A: International Energy Project
Development
Part B: Are Market Transformations Skin          Apr 25           Andrew Slaughter, Shell E&P
Deep?
Final Class                                      May 2            Energy Inc. Board of Directors Meeting
                                                                  Presentations
Exam Period – NO FINAL EXAM                      May 5, 6-        Final Team Project Reports (due by 9PM)
                                                 9PM




                                             Energy Inc. Agenda – Page 10
                   Institute for Energy, Law & Enterprise, University of Houston, www.energy.uh.edu

				
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