GRA 5911 Energy Economics Responsible for the course Øystein Noreng Department Leadership and Organizational Management Term According to study plan ECTS Credits 6 Language of instruction English Objective The course aims at giving students a comprehensive analytical introduction to energy issues, meaning oil, gas and electricity economics, including the policy and institutional framework. The course will also treat related environmental issues, OPEC, oil trading and oil price formation, North Sea oil policies, as well as EU regulatory policies. Prerequisites A bachelors degree in business or eq. Compulsory literature Books: Carol A. Dahl. 2003. International Energy Markets. Tulsa, Okla.: Penn Well Noreng, Øystein. 2005. Crude Power. New ed. London : I.B. Tauris Smil, Vaclav. 2003. Energy at the Crossroads. Cambridge: The MIT press Collection of articles: Selected articles from scientific journals, such as The Energy Journal, Energy Policy as well as book chapters. Other: Hand-outs in each lecture, posted on Blackboard Recommended literature Books: Andersen, Svein S. 1993. The struggle over North Sea oil and gas : government strategies in Denmark, Britain and Norway. Oslo : Scandinavian University Press. 1-33 and 167-190 Antill, Nick and Arnott, Robert. 2002. Oil company crisis : managing structure, profitability and growth. Oxford: Oxford Institute for Energy Studies. 79 Cordesman, a.H. and Al-rodhan, R. 2006. The global oil market. Risks and uncertainties. Washington, D.C. : The CSIS Press Grace, John D. 2005. Russian oil supply : performance and prospects. Oxford : Published by the Oxford University Press for the Oxford Institute for Energy Studies. 1-13, 65-103, 178-234 Hoopes, Stephanie M. 1997. Oil Privatization, Public Choice and International Forces. Houndmills, Basingstoke : MacMillan. 1-36 and 82-138 Hunt, Sally, ed.. 2002. Making Competition Work in Electricity. New York: John Wiley Ian Rutledge. 2006. Addicted to oil : America's relentless drive for energy security. London: I.B. Tauris. 1-20, 37-68, 120-157 Jerome Davis, ed. 2006. The Changing World of Oil: An Analysis of Corporate Change and Adaptation. Aldershot : Ashgate Jim Rogers. 2007. Hot Commodities. Wiley. 120-153 John Mitchell, ed.. 2001. The new economy of oil : impacts on business, geopolitics and society. London: Royal Institute of International Affairs Johnston, Daniel. 2003. International Exploration Economics, Risk and Contract Analysis. Tulsa, Ok.: PennWell Books. 251 p J. Stern. 2005. The Future of Russian Gas and Gazprom. Oxford Institute for Energy Studies. 1-63, 201-222 Maugeri, Leonardo. 2006. The age of oil : the mythology, history and future of the world's most controversial resource. Westport, Conn. : Praeger. 201-272 Midttun, Atle and Finon, Dominique, eds. 2004. Reshaping European gas and electricity industries : regulation, markets and business strategie. Amsterdam: Elsevier Midttun, Atle, ed.. 2001. Approaches and Dilemmas in Economic Regulation: Politics, Economics and Dynamics. Houndsmill: Palgrave Noreng, Øystein. 2005. Crude power : politics and the oil market. London: I.B. Tauris. ch. 3 Noreng, Øystein. 2005. Crude power : politics and the oil market. New ed. London : I.B. Tauris. ch. 4 Noreng. Øystein, “The World Natural Gas Market and Its Implications for the World Oil Market”. Abu Dhabi 2001,. “The World Natural Gas Market and Its Implications for the World Oil Market”,. The Future of Natural Gas in the World Energy Market. The Emirates Center for Strategic Studies and Research Robert E. Ebel. 2005. China's energy future : the Middle Kingdom seeks its place in the sun. The CSIS Press. 86 p. Schipper, Lee and Stephen Myers. 1992. Energy Efficiency and Human Activity. Cambridge: Cambridge University Press Smil, Vaclav. 2003. Energy at the Crossroads. The MIT Press, London. 1-120 and 181-238. Stern, Jonathan. 1998. Competition and Liberalization in the European Gas Markets. London: Royal Institute of International Affairs. 1-109 Stoft, Steven, ed. 2002. Power System Economics: Designing Markets for Electricity. Piscataway, N.J. : IEEE Press Toyin Falola and Ann Genova. 2005. The politics of the global oil industry : an introduction. Westport, Conn. : Praeger. 3-61 Valerie Marcel and John V Mitchell,. 2006. Oil titans : national oil companies in the Middle East. London : Chatham House. 54-169 Yergin, Daniel. 1991. The Prize : the epic quest for oil, money, and power. New York: Simon and Schuster. Ch. 3,6,31 Journals: Osmundsen, Petter; Asche, Frank; Misund, Bård; Mohn, Klaus. 2006. “Valuation of International Oil Companies”. Energy Journal. Vol. 27 Issue 3. 49-64, 16 Andersen, Svein S, in, eds. Svein S. Andersen and Kjell. A. Eliassen. London 2001. “Energy policy: Interest interaction and supranational authority”. Making Policy in Europe. Second Edition Asche, Frank; Osmundsen, Petter; Sandsmark, Maria. 2006. “The UK Market for Natural Gas, Oil and Electricity: Are the Prices Decoupled?”. Energy Journal. Vol. 27 Issue 2. 27-40, 14 Bachmeier, Lance J.; Griffin, James M. 2006. “Testing for Market Integration Crude Oil, Coal, and Natural Gas.”. Energy Journal. Vol. 27 Issue 2. 55-71, 17 Barker, Terry; Ekins, Paul. 2004. “The Costs of Kyoto for the US Economy”. Energy Journal. Vol. 25 Issue 3. 53-71, 19p, 2 charts Claes, D.H.. 2003.. ‘Globalization and the state oil companies: The case of Statoil’. Journal of Energy and development. Vol. 29, No 1 Ewing, Bradley T.; Hammoudeh, Shawkat M.; Thompson, Mark A.. 2006. “Examining Asymmetric Behavior in US Petroleum Futures and Spot Prices”. Energy Journal. Vol. 27 Issue 3. 9-23, 15 Fischer, Carolyn; Morgenstern, Richard D,. 2006. “Carbon Abatement Costs: Why the Wide Range of Estimates?”. Energy Journal. Vol. 27 Issue 2. 73-86, 14 Fouquet, Roger; Pearson, Peter J. G. 2006. ”Seven Centuries of Energy Services: The Price and Use of Light in the United Kingdom (1300-2000).”. Energy Journal. Vol. 27 Issue 1. 139-177, 39 Fri, Robert W.. 2003. “The Role of Knowledge: Technological Innovation in the Energy System”. Energy Journal. Vol. 24 Issue 4. 51-74, 24 Gately, Dermot . 2007. “What Oil Export Levels Should We Expect From OPEC?”. Energy Journal. Vol. 28, Issue 2 Gately, Dermot. 2004. “OPEC's Incentives for Faster Output Growth”. Energy Journal. Vol. 25 Issue 2. 75-96, 22 Griffin & Teece. 1982. "Elements of the Crude Oil Production Decision: Implication from Economic Theory" and "Models of OPEC behavior". OPEC Behavior and World Oil Prices,. George Allen & Unwin. 13-35 Griffin, James M.; Schulman, Craig T.. 2005. “Price Asymmetry In Energy Demand Models: A Proxy for Energy-Saving Technical Change?”. Energy Journal. Vol. 26 Issue 2. 1-21, 21p, 3 charts, 4 graphs Hammar, Henrik; Löfgren, Åsa; Sterner, Thomas. 2004. “Political Economy Obstacles to Fuel Taxation”. Energy Journal. Vol. 25 Issue 3. p1-17, 17p, 2 charts, 4 graphs Joskow, Paul L. 2003. .”Energy Policies and Their Consequences After 25 Years”. Energy Journal. Vol. 24 Issue 4. 17-49, 33 Kaufmann, Robert K.; Dees, Stephane; Karadeloglou, Pavlos; Sanchez, Marcelo. 2004. "Does OPEC Matter? An Econometric Analysis of Oil Prices”. Energy Journal. Vol. 25 Issue 4. 67-90, 24 Kuper, Gerard H.; van Soest, Daan P.. 2006. “Does Oil Price Uncertainty Affect Energy Use?”. Energy Journal. Vol. 27 Issue 1. 55-78, 24 March 11 2007. ‘The new seven sisters’. Financial Times Murillo-Zamorano, Luis R.. 2005. “The Role of Energy in Productivity Growth: A Controversial Issue?”. Energy Journal. Vol. 26 Issue 2. 69-88, 20 Newbery, David. 2005. Energy Journal. Vol. 26 Issue 3. 1-39, 39 Smith, James L. 2005. Energy Journal. Vol. 26 Issue 4. 53-68, 16p, 4 graphs Smith, James L. 2005. “Inscrutable OPEC? Behavioral Tests of the Cartel Hypothesis”.. Energy Journal. Vol. 26 Issue 1. 51-82, 32 Wirl, Franz; Kujundzic, Azra. 2004. “The Impact of OPEC Conference Outcomes on World Oil Prices 1984-2001”. Energy Journal. Vol. 25 Issue 1. 45-62, 18 Collection of articles: Nore, Petter. Oslo 2003. Norsk Hydro’s Takeover of Saga Petroleum in 1999,. BI Norwegian School of Management Other: Kroes, N.. 2006. 'Cross border mergers and energy markets'. vol. 4- issue 4 November 2006. At: www.gasandoil.com/ogel/ Mayer, S.. 2006. 'EU's international energy security policy since the end of the cold war: origins and developments. vol. 4- issue 4 November 2006. At: www.gasandoil.com/ogel/ November 2005. EU-Russia dialogue’. Euractiv : Reynolds, D.B. and Kolodziej, M.. ‘Institutions and the supply of oil: A case study of Russia’. U of Alaska, Fairbanks.. Case material Course outline Theme: 1. Energy Introduction 2. Energy and the Environment 3. Energy Demand 4. Energy Trading and Price Formation 5. Energy Taxation 6. The Oil Market and Business 7. OPEC, Oil Supplies and Prices 8. The Natural Gas Business 9. The Electricity Markets and Business 10. The Company Structure and Analysis 11. Regulating Oil and Gas in the North Sea 12. EU Energy Policy Computer-based tools Blackboard/homepage Course structure 36 hours of lecture. Specific Information regarding student evaluation will be provided in class. Please note that while attendance is not compulsory in all courses, it is the students responsibility to obtain any information provided in class that is not included on the course homepage/Blackboard or text book. Evaluation A three-hour written exam and a term paper, each weighing 50 %. The termpaper can be written individually or in groups of two or three students. Evaluation code(s) GRA 59114 accounts for 100% of the final grade in the course GRA 5911. Aids at the examination Advanced calculator, BP Statistical Review of World Energy (http://www.bp.com), a bilingual dictionary. Support materials at written examinations are explained under exam information in our web-based student handbook. Please note use of calculator. http://www.bi.no/studenthandbook Makeup exam Re-takes are only possible at the next time a course will be held. When course evaluation consists of class participation or process elements, the whole course must me re-evaluated when a student wants to retake a exam. Retake examinations entail an extra examination fee. Honor Code Academic honesty and trust are important to all of us as individuals, and represent values that are encouraged and promoted by the honor code system. This is a most significant university tradition. Students are responsible for familiarizing themselves with the ideals of the honor code system, to which the faculty are also deeply committed. Any violation of the honor code will be dealt with in accordance with BI’s procedures for cheating. These issues are a serious matter to everyone associated with the programs at BI and are at the heart of the honor code and academy integrity. If you have any questions about your responsibilities under the honor code, please ask.