MEB439 Economics of Energy Corporations I.

Faculty of Social Studies
Autumn 2018
Extent and Intensity
2/0/0. 3 credit(s). Type of Completion: z (credit).
Teacher(s)
James Henderson, Ph.D. (lecturer), doc. PhDr. Tomáš Vlček, Ph.D. (deputy)
doc. PhDr. Tomáš Vlček, Ph.D. (lecturer)
Guaranteed by
doc. PhDr. Tomáš Vlček, Ph.D.
Department of International Relations and European Studies – Faculty of Social Studies
Contact Person: Olga Cídlová, DiS.
Supplier department: Department of International Relations and European Studies – Faculty of Social Studies
Timetable
Mon 19. 11. 14:00–15:40 U43, 18:00–19:40 U53, Tue 20. 11. 18:00–19:40 U42, Wed 21. 11. 10:00–11:40 AVC, 14:00–17:40 U35, Thu 22. 11. 8:00–11:40 P31 Posluchárna A. I. Bláhy
Course Enrolment Limitations
The course is only offered to the students of the study fields the course is directly associated with.
fields of study / plans the course is directly associated with
Course objectives
In this course we examine the key elements of the global energy economy and how they relate to decision-making at major energy corporations. We start with an overview of the major drivers of the global energy market and the key shifts that are currently underway due to the emergence of renewable energy. We discuss energy demand, oil, gas and coal prices, future scenarios for wind and solar and the impact of energy efficiency. We also discuss the increasing electrification of the energy system and the changing fuel inputs. We then relate all these topics to a series of example investments that could be made by energy companies and consumers, and discuss the key parameters of the decision-making process. We then move onto the geopolitics of energy, discussing the key role of Russia but also including key elements of Middle East policy (especially Saudi Arabia) and the key drivers for consuming countries such as China and India. We also look at the changing energy policy of the US thanks to the emergence of shale oil and gas as well as the election of Donald Trump as president. Students are then set a short essay question, within which they can choose one corporation or country and discuss the impact of the changing energy economy upon it.
Learning outcomes
Students will be able to understand how global energy economy works; relations between regulation and taxation in the energy sector, and the importance of the institutional framework; the impact of carbon targets and renewable energy on international oil companies; orient themselves in different corporate models and their interactions in the energy sector; understand the importance of government policy as a driver of economic value; financial, operational and governance metrics and the drivers of corporate valuation; understand measuring performance in the oil and gas sectors, understand the global market development by understanding the impact of carbon targets and renewable energy on international oil companies, and orient themselves in the position of Russian oil and gas sector and its impact on global oil and gas markets.
Syllabus
  • Lecture 1: The value chains in the oil and gas sector. How companies make money out of finding and developing hydrocarbons Lecture 2: Interaction with the state: Regulation and taxation in the energy sector, and the importance of the institutional framework Lecture 3: IOCs, NOCs and Independents: different corporate models and their interactions in the energy sector. The importance of partnership and competition Lecture 4: Measuring performance in the oil and gas sectors: financial, operational and governance metrics and the drivers of corporate valuation Lecture 5: The changing economics of hydrocarbons in a de-carbonising world: the impact of carbon targets and renewable energy on international oil companies. The importance of government policy as a driver of economic value. Lecture 6: The Russian oil sector and its impact on global oil markets Lecture 7: The Russian gas sector and its impact on the global gas market Lecture 8: The geo-politics of Russia's energy sector: commercial logic versus economic weapon, and the role of politics in Russia's energy strategy
Literature
  • BANKS, Ferdinand E. Energy and economic theory. New Jersey: World Scientific, 2015, xii, 499. ISBN 9789814366106. info
  • The Russian gas matrix : how markets are driving change. Edited by Tatiana Mitrova - Jonathan P. Stern - Katja Yafimava - James Henderson. 1st pub. Oxford: Oxford university press for the Oxford institute for energy studies, 2014, xx, 444. ISBN 9780198706458. info
  • YERGIN, Daniel. The prize : the epic quest for oil, money, and power. New York: Free Press, 1992, 877, xxxii. ISBN 0671799320. info
Teaching methods
Lectures, class discussions, essays
Assessment methods
Attendance, written essay
Language of instruction
English
Further Comments
Study Materials
The course is taught annually.
Listed among pre-requisites of other courses
The course is also listed under the following terms Spring 2017, Autumn 2017.
  • Enrolment Statistics (recent)
  • Permalink: https://is.muni.cz/course/fss/autumn2018/MEB439