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
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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
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
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
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
 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
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
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

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
MODULE I. WORLD ENERGY
OVERVIEW
Part A: Course Background
Part B: Overview on the Energy Value Chains
MODULE II: OIL AND GAS
EXPLORATION AND PRODUCTION
Part A: Discovery, Part I
Part B: Oil and Gas Field Services
Part C: E&P Politics, Policy and Trends
Part A: Discovery, Part II, investment analysis
MODULE III: THE OIL VALUE CHAIN
Part A: From Discovery to Your Car
Part B: Politics and Policy in the Oil Value Chain
MODULE IV: THE NATURAL GAS VALUE
CHAIN
Part A: From Discovery to Burnertip
Part B: Reconstituting the U.S. Natural Gas
Industry
Spring Break
MODULE V: THE ELECTRIC POWER
VALUE CHAIN
Part A: From Generation to Your Light Switch
Part B: Reconstituting the U.S. Electric Power
Industry
SUMMARY AND REVIEW – GAS/POWER
VALUE CHAIN
MODULE VI: ENERGY TRADING,
MARKETING AND SERVICES
MODULE VII: ENVIRONMENT AND
ALTERNATIVE FUELS
MODULE VIII: INTERNATIONAL
ENERGY PROJECT DEVELOPMENT
Part A: Are Market Transformations Skin Deep?
Part B: International Energy Project
Development
Final Class
Exam Period – NO FINAL EXAM
TARGET
DATES
ASSIGNMENTS
Jan 26
Feb 2
Feb 9
Feb 9
Feb 9
Feb 16
Snap 1 Assignment Due
Feb 23
Feb 23
Mar 1
Mar 8
Competitor Reports Due
Energy Inc. Team Proposals Due
Mar 15
Mar 22
Mar 29
Snap 2 Assignment Due
If needed
Apr 5
Apr 12
Snap 3 Assignment Due
Apr 19
Apr 26
May 3
May 5
Energy Inc. Board of Directors Meeting
Presentations
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
date of final exam for this class)
Energy Inc. Agenda – Page 10
Institute for Energy, Law & Enterprise, University of Houston, www.energy.uh.edu