BUEC 563 – E NERGY I NDUSTRIES AND M ARKETS : S YLLABUS
Instructor: Richard Dixon Email: [email protected] Phone: (780) 248-1650
Prerequisite: BUEC 502 – Managerial Microeconomics (or equivalent) COURSE OBJECTIVES
While 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 market, technological, environmental and other strategic issues.
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, business case, oral presentation, etc.).
LEARNING GOALS
Critical Thinking
Students will be exposed to current issues and ideas concerning energy and its development in the 21st Century and 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
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.
BUEC 563 – Winter 2014 – Alberta School of Business 2 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 The NREE Email list server
Also go to the www.CABREE.CA website to find blog and twitter sites that also convey the latest in energy comment and information.
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 (sample list below) including:
1. This is a must from Deutsche Bank – over of global energy (oil and gas) including good historical perspectives. http://www.scribd.com/doc/56660327/Oil-Gas-for-Beginners-A-Guide-to-the-Oil-Gas- Industry-09SEP2010
2. Canadian Energy Research Institute, Economic Impacts of the Petroleum Industry in Canada, 2009 3. Downey, Morgan, Oil 101 (Jan 2009, ISBN-10: 0982039204)
4. Canadian Energy Research Institute, The Impacts of Canadian Oil Sands Development on the United States’ Economy, 2009
5. Canadian Energy Research Institute, The Eye of the Beholder: Oil Sands Calamity or Golden Opportunity? 2009
6. Department of Business Innovation & Skills - Foresight
7. International Energy Agency, World Energy Outlook 2010, Oil Information 2011, Gas Information 2011, Renewable Information 2011, Coal Information 2011, Electricity Information 2011, 8. Other OECD including Energy
9. Shell’s Energy Scenarios to 2050, Signals and Signposts, and Scenarios: An Explorer’s Guide 10. US Energy Information Administration including Energy in Brief series
11. Also Alberta Departments of Energy, Environment and Sustainable Resource Development including the Energy Resources Conservation Board, and the Alberta Utilities Commission
12. Federal Departments of Natural Resources Canada
13. 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?
14. Strongly recommended that students subscribe to https://twitter.com/#!/CABREE_Alberta and to the NRE list server http://www.mailman.srv.ualberta.ca/mailman/listinfo/mba-nre . Various blogs will also be recommended including http://andrewleach.ca/
15. http://guides.library.ualberta.ca/business-energy Energy site at the Winspear Library 16. Oil Sands Research and Information Network (OSRIN) http://www.osrin.ualberta.ca/en.aspx 17. Inventory of Major Projects – Alberta http://www.albertacanada.com/business/statistics/inventory-
of-major-projects.aspx
18. Construction Labour Data in Alberta
http://www.coaa.ab.ca/LinkClick.aspx?fileticket=OnCGDdeNPe0%3d&tabid=114
19. World Energy Outlook 2012 – OECD Students need to access this through their U of A Library account http://www.oecd-
ilibrary.org.login.ezproxy.library.ualberta.ca/docserver/download/6112251e.pdf?expires=135302211 2&id=id&accname=ocid177104&checksum=EAA1BBBFE7B485618D1160B0FC0D1322
20. Shell’s New Lens Scenarios, 2013 http://s03.static-shell.com/content/dam/shell- new/local/corporate/Scenarios/New_Lens_Scenarios_Low_Res.pdf
BUEC 563 – Winter 2014 – Alberta School of Business 4 GRADING and ASSIGNMENTS
Written assignments
All assignments must include the student’s name, ID number and Class section and are due in electronic form the day that they are due. Assignments without complete ID information will not be graded. There is a penalty of 5% / day reduction for late assignments. Preference is for Arial 11. More details about each assignment will be on the course’s ULearn website. The different elements evaluated during the course will be summed to a total of 100%, as follows:
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.
Challenge Questions: 40%
Answers are submitted both in hardcopy and electronic form to [email protected] . Electronic submission to be titled with the following format: BUEC 563 CQ1 Last Name, Last Name, etc. (e.g.
BUEC 563 CQ1 Dixon Friedman Porter)
Clearly indicate your name(s) and student ID number(s) on all submissions.
All Challenge Questions are due at the beginning of class (6:30 p.m.) on the day indicated.
CQ 1: Oil Price Discovery – 12%
- 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 April 4, 2014. Use the model to also forecast the price at the end of 2014. Price for Friday closing on both oils. Prices in CDN / barrel at their pricing points.
CQ2: Briefing Note – 8%
- Using the prescribed format (do not alter) prepare a Briefing Note for the Government of Alberta’s Deputy Minister of Energy on the topic of a market friction in the oil sands market and what the Department might do about it. Market frictions topic can one of labour, social license, foreign direct investment, regulations, or financial.
CQ3: Access to Markets Mapping Exercise – 10%
- Research a trunk line crude oil or natural gas pipeline, its market or distribution point.
Research to include: ages of pipeline, route, sizes, type of pipe, length utilization history, capacity, flow rates, compressor stations, number of receipt points, key delivery points (e.g.
refineries, gas plant, petrochemical, tank farm, etc.), spill history, and types of products, overview of key tariffs. Remember in Canada this information is often difficult to obtain.
Ensure your efforts are documented. Format: Excel Workbook
CQ4: Energy Company Business Model – 10%
- Identify an energy or energy services company. This can be a major or junior but ensure you have access to their data. Research, analysis and indicate how the company creates, delivers, and captures value. This is not a business strategy exercise but an exercise to describe as a system how the pieces of fit together (see Harvard Business Review on Business Model Innovation – you are telling a story with a narrative test and a numbers test). Maximum of 3 pages.
Term papers, presentation and case competition: 50%
Students are required to submit two fifteen page papers (fifteen pages of text, not including cover page, executive summary, table of contents, and appendix). Each paper with its presentation will count for 25% of the course grade. Penalty for a late paper is 5% for each day that the paper is late.
First paper: includes the development of four scenarios on a particular aspect of one of the energy sectors studied in the course. You are free to choose the topic, however topic approval is required.
Students are strongly encouraged to work with an organization (e.g. company, government, etc.) in making this an applied business exercise. Students can work in teams of up to 4 people however the same grade is awarded to each member of a team. 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 energy or natural resources scenarios. The focus of this paper will be the development of a business case that utilizes the key issues discovered in the scenarios work.
BUEC 563 – Winter 2014 – Alberta School of Business 6 Timelines for Course Requirements and tentative Lecture Schedule:
Date Topic Assignment Schedule
06-Jan-14
Course Requirements. Scenarios and Business Case – Regulatory Regime 13-Jan-14 Oil
20-Jan-14 Oil – Shales, Subsalts, & Projects
20-Jan-14 Approval for Scenario Topic
20-Jan-14 Challenge Question 1 - Oil Pricing
27-Jan-14 Energy Transportation & Coal
03-Feb-14 Refineries Student Presentation on FQ & Scenario Matrix
03-Feb-14 Challenge Question 2 - Briefing Note
07-Feb-14 Refinery tour 10-Feb-14 Natural Gas 17-Feb-14 Reading Week
24-Feb-14 Energy pipelines Challenge Question 3 - Access to Markets
24-Feb-14 Opportunity Workshop
03-Mar-14 Scenario Paper Due
03-Mar-14 Electricity 14-Mar-14 CALGARY
17-Mar-14 Electricity & Alternatives
Challenge Question 4: Energy Company Business Model
24-Mar-14 Petrochemicals 31-Mar-14 Oil Sands & Royalties
April 3 & 4 Oil Sands Tour - Fort McMurray Oil Sands Tour
07-Apr-14 Case Competition Case Competition
11-Apr-14 Business Case due
The following site visits are yet to be finalized.
Centre of Excellence Cougar Drilling Solutions CANMET Research Genesee Power Plant Guest Speakers include:
Dave Bartleme, (NREE Alumni) Project Economist, Shell International James Cairns, VP Crude oil CN Rail
John Prusakowski, VP Refineries Suncor Energy Maury Porter, (NREE Alumni) Project Lead, Enbridge Alfred Sorensen, President & CEO Pieridae
Janet Annesley, VP – Communications Canadian Association of Petroleum Producers Jackie Forrest, Senior Director IHS CERA
Rob Pentney, President & CEO June Warren Nickels Energy Group Michael Richard, Senior Advisor Canaccord Wealth Management Chris Powter, Executive Director OSRIN
Marco Romero, President & CEO Polaris Minerals Mark Becker, VP (NREE Alumni) Suncor Energy Daniel Johnston, Principal Pacific Resolutions
Eddy Isaacs, CEO Alberta Innovates — Energy and Environment Solutions
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 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 expect you to reference and cite material that you use appropriately. I expect that you will familiarize yourself with the University of Alberta code of student behaviour as it applies to “inappropriate academic behaviour”, and specifically the following section. This is your responsibility. Feel free to see me if you have any questions.
Notes from General Faculties Council:
1. “Policy about course outlines can be found in Section 23.4(2) of the University Calendar.” Specifically,
"At the beginning of each course, instructors are required by GFC to provide a course outline which must include the following: (1) a statement of the course objectives and general content; (2) a list of the required textbooks and other major course materials; (3) an indication of how and when students have access to the instructor; (4) the distribution of weight between term work and final examination; (5) identification of all course activities worth 10% or more of the overall course mark; (6) whether marks are given for class participation and other in-class activities as well as the weight of such participation; (7) dates of any examination and course assignments with a weight of 10% or more of the overall course mark; (8) the manner in which the official University grading system is to be implemented in that particular course or section, i.e., whether a particular distribution is to be used to determine grades, or whether there are absolute measures or marks which will determine them, or whether a combination of the two will be used. Instructors should refer to the University of Alberta Marking and Grading Guidelines.
2. From the University of Alberta Libraries website "Imagine that you were about to get surgery and just as you were going under, you discovered that your surgeon had cheated throughout his/her university career. Would you feel betrayed? What if it was your lawyer? Your accountant? Your child's teacher? All the above scenarios are reflective of a concept called academic integrity. As the above examples illustrate,
BUEC 563 – Winter 2014 – Alberta School of Business 8 academic integrity not only affects the climate at the university but it can also affect every other area of your life." http://www.library.ualberta.ca/guides/plagiarism/academic/index.cfm
The Centre for Academic Integrity at Duke University defines academic integrity "as a commitment, even in the face of adversity, to five fundamental values: honesty, trust, fairness, respect, and responsibility.
From these values flow principles of behaviour that enable academic communities to translate ideals into action." (See http://www.academicintegrity.org/)
From General Faculties Council: “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 Behaviour (online at http://www.uofaweb.ualberta.ca/gfcpolicymanual/content.cfm?ID_page=37633) and avoid any behaviour 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.”
3. The University of Alberta Code of Student Behaviour (online at http://www.uofaweb.ualberta.ca/gfcpolicymanual/content.cfm?ID_page=37633#38360) specifies in Section 30.3.4 Inappropriate Behaviour towards Members of the University Community, subsection 30.3.4(1) Disruption, paragraph 30.3.4(1)a that "No Student shall disrupt a Class in such a way that interferes with the normal process of the session or the learning of other Students." Under Section 30.4.3 Levels of Sanction, subsection 30.4.3(1) Minor Sanctions, paragraph 30.4.3(1)a "Instructors have the authority to dismiss a Student from Class for no more than 3 hours of Class time for Disruption of a Class.
In cases where a single class meeting is longer than 3 hours the student may be excluded from that entire class."
4. Students may wish to view past blank copies of SCHEDULED FINAL EXAMS for this course by visiting the SU Exam Registry in person, at 0-26 Students Union Building (SUB), or online at http://www.su.ualberta.ca/services_and_businesses/services/infolink/exams. Also see previous exams online at Course Resources: http://www.business.ualberta.ca/rfield/Resources.htm.
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.
