BUEC 563: Energy Industries and Markets
Professor: Andrew Leach Office: 2-32L
Phone: 780-492-8489
Email: [email protected] Twitter: @andrew_leach
Office Hours: By appointment.
Course website: Contained within the ULearn system
COURSE OVERVIEW
The goal of this course is to develop a deep understanding of energy markets, regulations, and strategic and investment decisions made by players in the energy sector, with a particular emphasis on sectors most relevant in Alberta. We will look at the oil sands and other upstream oil and gas production, upgrading, refining, and pipeline sectors. We will then look extensively at the electricity sector and finish with a study of GHG policies and their impacts on energy sectors.
COURSE MATERIALS
There is no text required for this course. Any readings I use will be available freely online or available through the University of Alberta Libraries on-line access. You are also expected to remain up-to-date on issues related to the energy industry in the news. The topics of discussion may change rapidly in response to current events.
ASSIGNMENTS Briefing notes:
Outlook Briefing – Individuals or teams of 2 (25%)
You are to present a commodity outlook forecast in a briefing note no more than 4 pages in length. Your submission will be accompanied by a presentation to the class. Details including sign-ups for specific commodities and dates as well as grading rubrics will be provided in class.
Mini Case – Individuals or teams of 2 (25%)
You are to present a briefing note no more than 4 pages in length which addresses one of 4 problems presented through the term. Your submission will be accompanied by a presentation to the class. Details including sign-ups for specific cases as well as grading rubrics will be provided in class.
Each student must complete 1 of each, and at least 1 of the two required briefings must be done in the first half of term (i.e. before the end of October) excepting where permission is granted by the instructor. Teams may vary across the two assignments.
Strategy Court – (20%)
Each student will receive a composite grade based on group performance evaluated by judge(s) and peer evaluations for the strategy court simulation at the end of term.
Strategy Court Analysis – (30%)
You must submit an individual analysis of the strategy court question. You may choose to take a position independent of that for which you advocated in the simulation. Your analysis should again take the form of a briefing document of no more than 5 pages in length. Details including grading rubrics will be provided in class.
ACADEMIC MISCONDUCT
“The University of Alberta is committed to the highest standards of academic integrity and honesty.
Students are expected to be familiar with these standards regarding academic honesty and to uphold the policies of the University in this respect. Students are particularly urged to familiarize themselves with the provisions of the Code of Student Behavior (www.ualberta.ca/secretariat/appeals.htm) and avoid any behavior which could potentially result in suspicions of cheating, plagiarism,
misrepresentation of facts and/or participation in an offence. Academic dishonesty is a serious offence and can result in suspension or expulsion from the University.” (GFC 29 Sep 2003)
I will take any and all incidents of plagiarism seriously. It is your responsibility to ensure that you are familiar with the rules that govern academic misconduct, in particular the following section:
“30.3.2 Inappropriate Academic Behaviour, 30.3.2(1) Plagiarism
No Student shall submit the words, ideas, images or data of another person as the Student’s own in any academic writing, essay, thesis, project, assignment, presentation or poster in a course or program of study.”
(http://www.uofaweb.ualberta.ca/gfcpolicymanual/policymanualsection30-3-2.cfm ) More information is available at:
http://www.uofaweb.ualberta.ca/gfcpolicymanual/content.cfm?ID_page=37633 Grading policies for the University of Alberta may be found here:
https://policiesonline.ualberta.ca/PoliciesProcedures/Procedures/Grading-Procedure.pdf
Module Class Date Topic (Order is tentative ) 1 September 8 Introduction and goals
Energy in Alberta – a brief overview 2 September 8 Oil and gas production
Pricing and netbacks Pipelines and Rail
Major North American plays and extraction techniques Reserves and resources
Royalties and taxes
Project evaluation exercise: new oil sands projects 3 September 30 Refining and Upgrading
Crack spreads, product markets, simple vs complex refineries, etc.
First outlook presentations: Western Canada Select, West Texas Intermediate, or Brent crude
First mini case presentation: Fort Hills Pre-Mortem 4 October 28 Natural Gas Markets and processing opportunities
LNG Markets
5 November 25 Electricity
Alberta’s Electricity Market Renewable Electricity Policy
Second outlook presentations: Edmonton coking margins.
Second mini case presentations: Partial upgrading a win for MEG?
Third outlook presentations: LNG exports from Canada
Third mini case presentations: LNG in BC – Did Petronas make the right call?
6 December 8 Reclamation liability and GHG Policy
Fourth outlook presentations: Alberta electricity prices Fourth mini case presentations: Solar power in Edmonton Final TBD Strategy court simulation
