BUEC 563 – E NERGY I NDUSTRIES AND M ARKETS : S YLLABUS
Instructor: Richard Dixon Email: [email protected] Phone: (403) 875 – 3762 (cell)
Prerequisite: BUEC 502 – Managerial Microeconomics (or equivalent) COURSE OBJECTIVES
As part of the Natural Resources, Energy and Environment specialization this introductory course is an overview to the resource and energy industries and markets. Students gain a basic understanding of the evolving nature and structure of energy industries and markets, including regulatory, technological, economic, environmental and strategic issues. In this regard students will be expected to demonstrate this knowledge in written submissions, presentations, and examination.
Second, there is a strong emphasis on students' proficiency levels in verbal and written business communication. Of particular interest is the ability to do and convey critical analysis and thinking in a variety of business formats (e.g. briefing note, strategic scenarios, literature reviews, business cases, &
oral presentation). In other words, the course, in addition to learning about the energy sector, will also enhance a student’s abilities in critical business skills.
LEARNING GOALS
Critical Thinking
Students will be exposed to current issues and ideas concerning energy and its development in the 21st Century. This will help to develop their ability to analyze problems, situations and issues in a clear- minded, rigorous intellectual manner. At the end of the course the student will have more tools to critically think about current energy issues.
Energy Fundamentals
Students will enhance and develop a better understanding and awareness of the energy sector and its fundamentals from an economics, management and business perspectives.
Practical Experience
Students will have the opportunity to experience first-hand key segments of the energy industry and understand a wider overview of energy economic theory applied to actual business situations in the energy world.
Communication Skills - Oral and Written
BUEC 563 – Fall 2015 – Alberta School of Business 2 Students will have the opportunity to present to the rest of the class and participate with others.
Assignments have a written component to allow the development of writing skills. Emphasis is placed on grammar and the use of plain language skills in business application.
COURSE MATERIALS
There is no textbook for this course. However, given the rapidly changing nature of the energy sector there are a plethora of readings as well as a list of resources. Also check out the course’s ULearn website for updated materials.
Please subscribe to the following for further information sources that will be sent out from time to time:
http://www.mailman.srv.ualberta.ca/mailman/listinfo/mba-nree This is the NREE Email list server The instructor’s power point presentations for each topic will be posted on the course website. The power point presentations include web links to sites with current information on the topics to be addressed in the course.
From time-to-time materials will be distributed to the students free of charge during class however expect an extensive use of internet accessed materials including:
1. This is a must from Deutsche Bank – over of global energy (oil and gas) including good historical perspectives. http://www.wallstreetoasis.com/files/DEUTSCHEBANK-
AGUIDETOTHEOIL%EF%BC%86GASINDUSTRY-130125.pdf
2. AER’s ST-98 https://www.aer.ca/documents/sts/ST98/ST98-2015.pdf 3. Canadian Energy Research Institute, http://www.ceri.ca/
a. Especially look at their crude oil forecasts like:
http://www.ceri.ca/images/stories/Study_150_-
_WCSB_Conventional_Crude_Oil_Forecasts_and_Impacts_-_July_2015.pdf 4. Department of Business Innovation & Skills - Foresight and http://hsctoolkit.bis.gov.uk/
5. International Energy Agency, http://www.iea.org/ especially their latest reports including World Energy Outlook (latest year). Access through U of A Library account
6. Other OECD including their library http://www.oecd-ilibrary.org/;jsessionid=1wbc7n5myzqf1.x-oecd- live-01 (combined with IEA)
7. Shell’s http://www.shell.com/global/future-energy/scenarios/2050.html and Scenarios: An Explorer’s Guide http://s03.static-shell.com/content/dam/shell-
new/local/corporate/Scenarios/New_Lens_Scenarios_Low_Res.pdf 8. US Energy Information Administration including Energy in Brief series
9. Also Alberta Departments of Energy, Environment and Parks, including the Alberta Energy Regulator, and the Alberta Utilities Commission
10. Federal Departments of Natural Resources Canada and Statistics Canada
11. IHS CERA – Canadian Oil Sands Energy Dialogue Reports and Studies (on line form needs to be filled out)
a. Special Report: The Role of the Canadian Oil Sands in the US Market: Energy Security, Changing Supply Trends, and the Keystone XL Pipeline, June 2011
b. Special Report: Oil Sands, Greenhouse Gases, and European Oil Supply: Getting the Numbers Right, April 2011
c. Special Report: Canadian Oil Sands Face US GHG Policy Uncertainty, April 2011 d. Special Report: Oil Sands Technology: Past, Present, and Future, January 2011
e. Special Report: Oil Sands, Greenho`use Gases, and US Oil Supply: Getting the Numbers Right, September 2010
Also available are Frequently Asked Questions on this Special Report f. Special Report: The Role of Canadian Oil Sands in US Oil Supply, April 2010
g. Multi client Study: Growth in the Canadian Oil Sands: Finding the New Balance, May 2009 h. Frequently Asked Questions (FAQ) on IHS CERA's Oil Sands, Greenhouse Gases, and US Oil
Supply: Getting the Numbers Right?
12. http://guides.library.ualberta.ca/business-energy Energy site at the Winspear Library 13. Oil Sands Research and Information Network (OSRIN) http://www.osrin.ualberta.ca/en.aspx 14. Inventory of Major Projects – Alberta http://www.albertacanada.com/business/statistics/inventory-
of-major-projects.aspx
15. Construction Labour Data in Alberta
http://www.coaa.ab.ca/LinkClick.aspx?fileticket=OnCGDdeNPe0%3d&tabid=114
16. JuneWarren-Nickles including Daily Oil Bulletin, New Technology http://www.junewarren- nickles.com/
17. Subscriptions to Oxford, Energy Institute, RFF and others cost nothing but recommended
BUEC 563 – Fall 2015 – Alberta School of Business 4 GRADING and ASSIGNMENTS
Written assignments
Assignments must include student(s)’ name (s), ID number and Class section.
Assignments to be header titled with the following format: BUEC 563 Assignment Last Name, Last Name, etc. (e.g. BUEC 563 Scenarios Dixon Friedman Porter)
Submissions are submitted both electronic (to [email protected] ) and hardcopy to the drop off box for this course.
Submissions are due at the beginning of the class or at the end of the day depending on when they are due.
There is a penalty of 5% / day / assignment reduction for late assignments.
More details about each assignment will be on the course’s ULearn website.
Use APA 6th edition style guide for academic writing. Preference is for Times New Roman 11.
Class attendance, Participation and Site Visits: 10%
Attendance is compulsory for class and site visits.
Preparation, attendance, and positive contribution to classes together define participation.
Unexcused absence can result in a failing mark for the course.
During the last class there will be an internal case competition among students.
Site visits are scheduled on a Friday except Fort McMurray which is over two days.
Due to the nature of the energy industry, trips may be cancelled or postponed with little notice from the company.
Assignment 1: Oil Price Discovery – 10%
Two-pages (maximum) on the key drivers of oil prices for WTI and WCS (bullet form). Clearly indicate the importance, likelihood and impact of the drivers.
Based on the key drivers develop an Excel worksheet with table and graph that forecasts the weekly price of both oils until December 31, 2015. Use the model to also forecast the price at the end of June, 2016. Price for Friday closing on both oils. Prices in US$ / barrel at their pricing points.
Assignment 2: Briefing Note – 10%
Using the prescribed format (do not alter) prepare a Briefing Note for the CEO of Alberta Energy Regulator on a topic to be assigned on the first class of the course.
This is an individual assignment – NOT a team effort.
Term papers, presentation and case competition: 70%
Extractive energy faces several challenges in today’s world including: climate change and increasing carbon constraints; social license issues and renewed environmental focus; access to markets and new technologies; and financial and investment concerns. For these and other reasons the energy industry is a heavily regulated industry.
The challenges for energy regulators are twofold: first, to have the capability to deliver on its operational, technical and regulatory commitments and second, to anticipate industry changes to maintain effective coverage of their respective legislated mandates.
Assignment
This assignment has two interconnected parts. First, develop evidenced-based plausible scenarios for fossil fuels that will be used as a basis to inform the second part of the assignment. This second part is to
develop a robust learning organization business case & roadmap (CoRE) for the Alberta Energy Regulator that best assists it in being recognized as best-in-class. This is an applied business exercise.
Students are free to choose from any examples or models they deem necessary but, at the least, need to reference CAAi (http://caainternational.com/) and Enform (http://www.enform.ca/).
Logistics
Students can work in teams of up to seven students with the approval of the professor. Individual grades are based on the team grade.
Students are required to submit two fifteen-page papers (twenty pages of text, including cover page, executive summary, table of contents, and appendix). Grade for the first paper with its presentation is 30% and for the second paper and presentation it will be 40% of the course grade.
First paper: includes the development of four scenarios mentioned above with students proposing what the key focal question will be. Students will also prepare and present a draft of their scenarios during class. This presentation serves as part of the grade for the paper.
Second paper: is based on the first paper. The focus of this paper will be the development of a business model and roadmap that utilizes the key issues discovered in the scenarios. On December 3 the class will be devoted to a case competition where judges from the AER will be presiding.
BUEC 563 – Fall 2015 – Alberta School of Business 6 Timelines for Course Requirements and tentative Lecture Schedule:
Date Topic Assignment Schedule
03-Sep
Course Requirements – How to do energy scenarios, Business Cases
10-Sep Oil & CoRE Guest Speaker: Rob Wadsworth
17-Sep Oil sands, mines, OSRIN & COSIA Guest Speaker: Chris Powter
24-Sep Alberta oil reserves Guest Speaker: Carol Crowfoot
27-Sep Oil Pricing Assignment DUE
1&2-Oct Fort McMurray & Oil Sands Site Visits 08-Oct Coal & Refineries
15-Oct Natural Gas & LNG Guest Speaker: Alfred Sorensen
15-Oct Briefing Note DUE
22-Oct Pipelines 22-Oct Electricity
29-Oct Electricity & Renewables 5-Nov Petrochemicals
6-Nov Calgary Scenario Paper Due & Presentation
12-Nov Reading Week – no class 19-Nov Petrochemicals
26-Nov Nuclear
03-Dec Case Competition Last Class
07-Dec Business Case due
The following site visits are potentials Suncor Refinery
Cougar Drilling Solutions CANMET Research Genesee Power Plant
Criteria for evaluation:
Structure of paper and strength of arguments (is this a convincing, well organized and well- written paper?)
References and evidence of research (demonstrate the quality of the research, including modeling that was done in preparation)
Overall quality of the text (hint: have your paper proof read)
The results (%) will then be converted to the course grade, based on the following scale:
o Excellent: A+, A, A- o Good: B+, B o Satisfactory: B-, C+
o Failure: C and below
IMPORTANT NOTE:
The GFC Campus Law Review Committee (CLRC) seeks your assistance in ensuring that this notice is distributed to every administrator, instructor, and graduate teaching assistant in your Department or Faculty. We ask that in non-departmentalized Faculties, Deans distribute this notice and that in departmentalized Faculties Deans distribute this notice to their respective Department Chairs and ask that they, in turn, distribute this notice accordingly.
Plagiarism, Cheating, Misrepresentation of Facts and Participation in an Offence
Plagiarism, cheating, misrepresentation of facts and participation in an offence are viewed as serious academic offences by the University and by the GFC CLRC. Sanctions for such offences range from a reprimand to suspension or expulsion from the University.
GFC CLRC believes that students should be told, at the beginning of each term, how the University defines plagiarism and cheating, what constitutes misrepresentation of facts and participation in an offence -- and what the sanctions are. In particular, awareness of the latter offence may help students resist pressure from other students to assist them in acts of academic dishonesty. We would also like to ensure that all instructors know what they must do when they encounter instances where they believe plagiarism, cheating, misrepresentation of facts or participation in an offence might have occurred.
The "Don't Cheatsheet" is available on the University Governance website at:
http://www.governance.ualberta.ca/ From the drop down menu click on Student Appeals and navigate to the Don’t Cheatsheet.
To assist students we ask that you let them know writing help is available through the:
Student Success Centre: http://www.studentsuccess.ualberta.ca/
Centre for Writers: http://c4w.ualberta.ca/
University Policy on Recording:
Recording is permitted only with the prior written consent of the professor or if recording is part of an approved accommodation plan.
