BUEC 686
Energy & Resource Project Evaluation January-April, 2001
COURSE OUTLINE
Rick Hyndman
Visiting Professor of Energy Policy, Faculty of Business, University of Alberta 3-23 Business Building, Edmonton, Alberta T6G 2R6
Tel: (780) 438-1923 Fax: (780) 492 3325 E-mail: [email protected]
OBJECTIVE &STRUCTURE
The objectives of this course are: (i) to reinforce understanding of the material of the core MBA courses through the application to natural resource and energy industries, and (ii) develop skills for managing analysis and evaluation of projects.
The course will involve a combination of lectures dealing with core material and workshops on practical projects provided by companies in the energy and resource sector. The sessions, led by visiting practitioners from energy and resource companies and the instructor, will involve students in working through pre-distributed material and applying the material to their projects. The
workshop sessions will involve both student presentation of progress reports and problem solving.
Each project will be worked on by a group of three or four students arranged by December 1.
Students will draw on the lecture material, analytical skills developed in other MBA courses, and information from the energy and resource sector companies providing the projects. In addition to a written final project report, students will make a presentation on their findings in class and to the company.
EVALUATION
Format Topic Date Weight
Written report Project plan January 29 15%
Exam Lecture material March 5 30%
Written report &
Presentation
Progress report March 12 15%
Written report &
presentation
Final report April 9 40%
Participation Lectures, workshops January 8- April 9 Deduction for non- participation*
*No deduction for 1 unexcused absence, 5%deduction for each additional absence.
CONTENT
BACKGROUND COVERED IN HANDOUTS &REFERENCES
Structure of energy and resource markets
January 8, 2001 Page 1 of 3
PROJECTS
Investment in wind power projects
Natural gas, electricity and energy services retailing
Reflecting climate change risk in oil sands investment decisions Evaluation of new coal-fired electricity plant
Forestry industry project Oil sands by-product market
Aspects to address (not all aspects are applicable to all projects):
• Project technology and costs: Resource base and costs, equipment options, suppliers and costs
• Market & regulatory framework, requirements and outlook under different scenarios:
Contractual requirements for selling output, policy risks and opportunities: price, cost , other
• Financing and taxes, royalties
• Environmental and social considerations
Project work
Students carry out their work in groups of 3 or 4, with guidance from the company project contact and the course instructor.
• Early December: students are assigned to projects and advised of the general outline of their projects, company contacts and some initial references.
• January: detailed description of the projects, methodology, information sources and work plans, approved by company contact and instructor. Project design finalized by last week of January. Each group will have one person responsible for their project management, including use of Microsoft Project to summarize and present their work plan.
> January 29: written report on project design and work plan submitted.
• February & March, research and drafting of report, with bi-weekly informal progress reports.
> March 12: mid-term formal progress report to company contact and instructor.
• April: presentation of final report
> April 2 & 9 to class.
> April 3 - 12: date to be arranged for presentation to company.
Project reporting requirements
• Written report on detailed project description, methodology, data sources, and work plan.
• Mid-term progress report on application of analytical tools to project.
• Final report (paper) and Powerpoint presentation to class and company.
What is expected of company contacts?
• Guidance in design of the project: scope, methodology.
• Provision of information and or direction to information sources.
• Feedback on progress.
• Evaluation of quality of work in final report and effectiveness of presentation.
January 8, 2001 Page 2 of 3
CLASSES
The classes are designed as a combination of a lecture outlining core material that is relevant to all the course projects, followed by a working session in which the material is applied to the
individual projects. Students are expected to prepare in advance questions about the application of the material to their projects.
January 8
Introduction:
Overview of core material and its application to projects
Project outlines, work plans, content and schedule of reports on projects Rick Hyndman
January 15:
Modern asset pricing applied to conventional oil investments David Laughton
January 22
Assessing the market environment for energy investments: scenario analysis Charles Slagorsky, Shell Canada
January 29
Project Management
Scott Woronuik, VP BP Canada
February 5
New venture evaluation process
Whitney Rockley, PanCanadian Petroleum
February 12
The long-term corporate context for investment and operations: the triple bottom line.
Integrating climate change risk in corporate decision-making Eve Sprunt, Chevron Inc (tentative)
February 19
Reading Week
February 26
Retail marketing of electricity and natural gas Ed de Palezieu, VP Marketing & Retail, EPCOR
March 5
Exam on lecture material, 1.5 hours Workshop on projects
March 12, 19, 26
Workshops on projects
April 2, 9
Presentation of project final reports
January 8, 2001 Page 3 of 3
