GLOBAL ENERGY, ECONOMICS AND GEOPOLITICS
PAI 700-2 SUMMER 15
SYLLABUS FOR MAXWELL SCHOOL
SYRACUSE UNIVERSITY
OVERVIEW
This course will provide a sound basis for understanding the interaction of global energy
concerns with evolving economic and geopolitical issues. Energy is central to major
international issues, including Russia’s relationship with Ukraine and Europe, growth in
China or India, Middle East politics and relations with the west or the development goals
of diverse nations such as Nigeria, Bolivia, or Venezuela. The course will examine
United States energy policy and the complex choices confronting today’s policymakers.
We also will take an in-depth look at policies proposed by the administration of President
Barack Obama. We will examine in depth international oil and gas markets focusing on
specific geographic regions and countries (both producing and consuming) and the
political, economic and social issues associated with energy development or use.
President Barack Obama wants to move the United States away from its dependence on
foreign oil to a more “green” energy economy. We will discuss what this means and
what the Obama Administration is doing to achieve its goals. With transportation the
major user of oil, the course will examine the options available for changing the use of oil
as a transportation fuel. Discussion will include how hydraulic fracturing (fracking) and
horizontal drilling altered American energy security and energy independence. A focus
will be on the issues surrounding whether and to what extent the United States should
export natural gas or crude oil. These issues are central to the current political climate
and we will explore why they are important and what is being proposed. The course will
look at many current issues including the debate over the use of hydrocarbons versus
renewable energy; the development of alternative energy sources; the future of nuclear
power; the impact of energy on the environment; the importance of energy needs for
developing countries; and the rise of China and India as dominant energy
producers/consumers. This will be a course with broad scope that explores cutting edge
issues for today’s world.
SEMINAR GOALS
As a result of taking this course the student should be able to understand current issues in
global and regional energy markets. In addition, the student should be able to understand
and discuss policy options available to policymakers as they confront complicated
choices regarding economics, politics and social issues.
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FORMAT
The course will follow a seminar discussion format with sessions taught in an interactive
manner. Student participation will be expected. Guest speakers drawn from the
Washington energy community will be an integral part of the course.
GRADING
Each student will be expected to write three (3) short memoranda. Two of the papers will
be on assigned topics; the third will be on a topic of the student’s choosing. Class
participation will be considered and can count as much as 20 percent in evaluating each
student’s performance and grade.
COURSE READING MATERIALS
Most reading materials will be posted on Blackboard in advance of each session or
distributed in class. Students are expected to be familiar with these materials. A recent
book is now available that will be referenced throughout the course; students should
purchase this book as it is the best, current text covering most of the subjects covered in
the course. It is, The Quest: Energy, Security, and the Remaking of the Modern World,
Daniel Yergin, Penguin Press, 2011.
ADVANCED READING
Excellent preparation for this course is a recent publication by the Center for Strategic
and International Studies (CSIS), New Energy, New Geopolitics: Balancing Stability
and Leverage published in April 2014. It is available at www.csis.org under
publications.
CLASS HOURS: TUESDAY Evening: 6:00 pm to 8:40 pm; THURSDAY Evening:
6:00 pm to 8:40 pm.
MAY 26, 28, JUNE 2, 2015: SESSION 1: ENERGY FUNDAMENTALS
 Introduction to energy – what is it, where is it found, how is it supplied and how
is it used
 Overview of oil, gas, electricity, nuclear, coal, renewable industries
 Overview of supply and demand issues
 Overview of U.S. and international issues
 Reading/Resources: Required reading: The Quest, Introduction and Prologue.
U.S. Department of Energy, Energy Information Administration website:
www.eia.gov. At home page, go to Learn About Energy and click on Energy
Explained. At Energy Explained read each section starting with What is
Energy?, and put special emphasis on the major sections of Nonrenewable
Sources, Renewable Sources, and Secondary Sources of energy use and
profiles for each energy sector under each heading. Become familiar with EIA’s
2015 Annual Energy Outlook by reading the Executive Summary released in
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Spring 2015 and EIA’s 2014 International Energy Outlook released in July 2014
(available at same EIA website under Outlooks located in box on the right of the
home page); World Energy Outlook from the International Energy Agency at
www.iea.org.
Guest speakers: May 28, Paul Holtberg, Director, Energy Statistics, speaking on
Annual Energy Outlook and June 2, Mary Barcella, Head of Natural Gas,
IHS/CERA on gas markets;
JUNE 4: SESSION 2: FIRST PAPER SUBMITTED AND DISCUSSION
Discuss in 2 to 4 pages the pros and cons of lifting the ban on the export of crude oil.
Indicate the sources where you obtained your information. Sources can be on a page
or pages in addition to the 2-4 pages. Be prepared to discuss your research during
this class.
JUNE 9, 11, 2015: SESSION 3: OIL AND GAS MARKETS
 International oil and gas markets, an in depth discussion – peak oil, plateau,
growth scenarios
 Geographical concentrations for producing countries
o Middle East, Europe and Russia, Central Asia/Caucasus. Africa, Latin
America
 Geographical concentrations for consuming countries
o Europe, Asia (China, Japan, S. Korea), South Asia (India)
 Development issues in emerging market producing countries
o Norwegian model compared to other producing countries such as Nigeria,
Venezuela, Russia, Kazakhstan, Azerbaijan
o Moral hazard issues – corruption, squandering resources, Dutch disease
 Reading/Resources for Oil and Gas: The Quest, Part One, The New World of Oil.
Aspen Reports, copies available and on web site, www.aspeninstitute.org/ee;
Reading Materials: NY Times, “End of Oil”; Hirsch, “The Inevitable Peaking of
World Oil Production”; EIA, Country Analysis Briefs, www.eia.gov.
 Guest Speaker: June 9, Linda Doman, Leader on International Energy Markets,
speaking on International Energy Outlook both from the Energy Information
Administration, Department of Energy. June 11, Paul Tumminia, Department of
Energy on Russian energy.
JUNE 16, 2015: SESSION 4: ENERGY SECURITY
 Renewed focus on energy security
 Consuming/producing country perspectives
 Institutions and instruments: International Energy Agency, stocks, demand
restraint
 Reading/Resources for Energy Security: The Quest, Part Two, Securing the
Supply. Reading Materials: Goldwyn, Morse and Patron, “Building Long Term
Energy Security: Seize the Moment”, Yergin, “Ensuring Energy Security” in
Foreign Affairs; Yergin, “The Fundamentals of Energy Security”; “Nervous
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Energy”, from The Economist; “Special Report: European Energy” from The
Economist; Aspen reports.
Guest Speaker:
JUNE 18, 2015: SESSION 5: SECOND PAPER SUBMITTED AND DISCUSSION
Discuss in no more than 5 pages the energy profile of a country of your choice,
indicating both production (if any) and consumption and important political and
social issues associated with the country’s production and/or consumption of energy.
Indicate the sources and they can be indicated in footnotes or separately in addition
to your text. Be prepared to discuss your research during this class.
JUNE 23, 2015: SESSION 6: U.S. ENERGY POLICY AND OBAMA ENERGY
POLICIES
 Energy policy through Bush Administration with the Energy Policy Acts of 200506-07.
 Infrastructure issues, refining, natural gas and liquefied natural gas and electricity
 Supply policies versus demand policies
o Opening new areas for production – Alaska, offshore US, Rocky
Mountains
o Demand driven policies – energy efficiency, CAFE
 Emergence of a North American market in energy including the role of Canada
and Mexico and the role of Canadian tar sands and Alberta gas
 Unconventional Natural Gas Development—a revolution in natural gas markets
 Hydrocarbons versus alternatives
 Environmental controls: carbon tax versus cap and trade
 Nuclear
 Energy, trade, democracy, human rights
 Reading/Resources: The Quest, Parts Five and Six, New Energies, and Road to
the Future. See www.npc.org, latest report of the National Petroleum Council,
Facing the Hard Truths about Energy. National Energy Policy Statement, May
1991 on Blackboard; Energy Policy Act of 2005, see
www.en.wikipedia.org/wiki/Energy_Policy_Act_of_2005; Energy Security and
Independence Act of 2007; www.govtrack.us/congress/bill.xpd?bill=h1106&tab=summary, Reading Materials: “Comments and Observations on the Topic
of U.S. Energy Independence” in Reading Materials. www.whitehouse.gov, see
Agenda: Energy and the Environment, Read, Blueprint for a Secure Energy
Future, March 30, 2011 under topic heading, A Secure Energy Future. See also,
A New Foundation, for additional statements on energy and the environment by
President Obama. See also, www.nga.org, website for the National Governors
Association and search Environment, Energy or Natural Resources for policy
statements and reports; www.edisonfoundation.net, home page for Institute for
Electric Efficiency, see reports; and www.epri.com, home page for Electric Power
Research Institute, see reports.
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JUNE 25, 2015: SESSION 7: ENERGY AND TRANSPORTATION
 Oil use in transportation – two thirds of oil goes to transportation
 Problems: slowing of efficiency gains; trends in vehicle sales (SUVs and light
trucks)
 Proposed solutions: bio-fuels, hybrids, fuel cells
 Reading/Resources: The Quest, Part Six, chapter 35, The Great Electric Car
Experiment. See website for The International Clean Council on Clean
Transportation: www.theicct.org. Aspen reports; Reading Materials: Sandalow,
“Ending Oil Dependence” from The Brookings Institution.
 Guest Speaker: Representative from Toyota.
JUNE 30, 2015: SESSION 8: ELECTRICTY AND RENEWABLE ENERGY
 Focus on latest developments in electricity markets and the development of
renewable energy.
 The Quest, Part Three, The Electric Age, pp. 345-416.
 Guest Speaker: To be Announced.
JULY 2, 2015: SESSION 9: ENVIRONMENTAL AND ENERGY ISSUES
 Discussion of cap and trade legislation.
 Carbon tax.
Reading/Resources: The Quest, Part Four, Climate and Carbon.
http://energycommerce.house.gov. Search site for March 31, 2009 media advisory
announcing Chairmen Waxman, Markey release discussion draft of new Clean Energy
legislation: American Clean Energy & Security Act of 2009 and discussion draft
summary. Also: www.epa.gov/climatechange, see under Economic Analysis, EPA’s
discussion of the Waxman-Markey legislation.
JULY 2, 2015 SESSION 10: THIRD PAPER SUBMITTED, DISCUSSION AND
RETROSPECTIVE
 Review of course material
 Discussion of any outstanding questions
JULY 2: Discuss in no more than 5 pages an energy topic of your choice. This
paper should take a position. In other words, consider that you are advising a
member of Congress or the Executive branch or an investment banker on the issue
indicating why that person should or should not take action that you are
recommending. Sources should be listed in footnotes or at the end of the paper and
are not considered part of the 5 pages.
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