Center for Energy Economics, BEG/UT-Austin

April 21-23 - Dr. Foss chaired two panel discussions at the CWC LNG 2008 held on April 21-23 in San Antonio. The first was the opening keynote session, "International and Domestic Market Drivers: How Are They Influencing the US LNG Market?" and included Andrew Jupiter (National Energy Corporation of Trinidad & Tobago), Andrew Walker (BG North America) and Guy Caruso (Administrator of the US Energy Information Administration). The second panel "US Gas Buyers & Consumers: What Roles Are They Playing in the LNG Game?" looked at LNG from an end-user perspective including utilities, industrial users, power companies and other major consumers of gas. Panel speakers included: Simon Bonini (CENTRICA) and Craig Barrie (Dow Chemical).

April 21 - Dr. Foss co-chaired with Jeremy Platt, EPRI an AAPG Forum on Economics of Natural Gas and Alternative Energy. Held as part of the AAPG Annual Convention and Exhibition in San Antonio, the Forum addressed the critical factors shaping the natural gas market outlook over the intermediate term, escalation in costs of exploration and production and the way these factors affect the financial performance of specific projects. Other presenters included Ed Kelly, Wood Mackenzie and Jim Davidson, National Energy Board-Canada.

April 11 - CEE-UT held a Think Day on "Renewable Energy Certificates (REC) Trading in Texas and in the U.S. " CEE has been looking at portfolio standards and REC trading as models for dealing with carbon regulation and promoting low carbon technologies. At the Think Day, Dr. Gülen provided background on how REC trading became popular around the nation and identified some challenges for creating standards and expanding regional markets. Mr. Mike Sloan of Virtus Energy provided the history of Texas RPS and REC market, identifying several issues going forward. Dr. David Hurlbut of National Renewable Energy Laboratory presented national trends in renewable energy and the role of REC markets. His presentation was followed by a talk by Mr. Sakis Asteriadis of APX, a company which has developed most of the trading platforms for RECs around the country, on trends with trading RECs, energy efficiency certificates and eventually carbon offsets. After the presentations, Mr. Jess Totten of the Public Utility Commission of Texas led a discussion on moving forward with these environmental markets.

Dr. Gülen gives a presentation at CEE's REC Trading Think Day.

March 27 - CEE-UT held an LNG Forum in Houston to present the results and conclusions of the recently conncluded study on the community benefits associated with LNG regasification infrastructure in the United States. The forum featured presentations by Dr. Foss and Dr. Gurfinkel on the findings of the study, followed by panel discussion with Dr. Gordon Weil (Weil & Howe) and Mr. Ward Pennebaker (Pennebaker).

March 17 - Dr. Foss gave a keynote presentation for the International Energy Credit Association 2008 Spring Conference in Napa, California. Download presentation slides here.

March 11 - CEE-UT presented the results and conclusions of the recently concluded study on the community benefits associated with LNG regasification infrastructure in the United States. The presentation was part of a Forum organized jointly with the Center for Strategic and International Studies (CSIS) in Washington, D.C. The forum addressed issues in locating LNG infrastructure facilities, focusing on community and economic benefits to disseminate lessons learned for other large energy infrastructure projects. Mr. Frank A. Verrastro (Director and Senior Fellow of CSIS Energy and National Security Program) made welcoming remarks which were followed by presentations by Dr. Foss and Dr. Gurfinkel on the study and its implications for large energy infrastructure development in the United States. The event continued with a panel discussion on key issues and constraints in developing critical energy infrastructure in the United States and abroad, including both security considerations for infrastructure assets and implications for overall energy security and delivery. Panelists also included Mr. Gordon Weil (Weil & Howe), Ms. Linda Stuntz (Stuntz, Davis & Staffier), and David Pumphrey (CSIS). Download presentation slides here .

February 25-29 - Dr. Gulen and Dr. Gurfinkel led the "Global Energy Markets Trade Programme� in New Delhi , sponsored by the USAID's South Asia Regional Initiative for Energy program and organized by PA Consulting. The seminar attracted more than 30 participants from Afghanistan, Bangladesh, India, Maldives, Nepal, Pakistan, and Sri Lanka. The program covered key issues in the global energy sector as they relate to South Asian economies, based on material from CEE's New Era program, and provided an opportunity to discuss the key elements of the SARI/Energy program: cross-border energy trade, energy market formation, and regional clean energy development as elements that contribute to poverty alleviation efforts and the region's energy security. The seminar is part of a broader effort in which CEE cooperates with PA Consulting Group, including an Energy Security Quarterly.

February 21 - Dr. Foss presented an "Overview on the Business of LNG" for a training program co-sponsored by ABS Consulting and Petrobras University in Rio de Janeiro.

February 12 - CEE-UT resumed its periodic Think Day seminars with a special event co-hosted with the British Consulate-General, Houston/UK Science and Innovation on climate economics. This Think Day seminar featured Dmitri Zenghelis, Head of the Stern Team for the Stern Review on Economics of Climate Change.

February - Article "Africa: A New Frontier in Oil and Gas Exploration" by Dr. Foss was featured in February 2008 issue of Geotimes magazine published by the American Geological Institute.

February 08, 2008: Mariano Gurfinkel provided a guest comment in the Inter-American Dialogue's Latin America Advisor-Energy issue on Petrobras' success as a National Oil Company.

Issue: Brazil's Petrobras is now one of the top six most highly market capitalized energy firms in the world, joining other national oil companies (NOCs) that are replacing familiar private-sector players, PFC Energy said in a report last month. Will the company's success endure? What do other Latin American NOCs need to do to join the ranks of the world's influential players?

Comment: Brazil 's growing hydrocarbon sector is the direct result of the implementation of commercial frameworks for oil production and the move to partially privatize PETROBRAS. The key to success has been the definition of for-profit activity within the upstream oil sector in Brazil . If in addition, we add commercial objectives for PETROBRAS, a growing and vibrant sector is possible in which PETROBRAS is the principal participant. Our research on national oil companies has shown the importance of adequate commercial frameworks for the functioning of a national hydrocarbon sector and for increased performance of national oil companies. Moreover, we have identified a market premium for partially privatized national oil companies that function within such commercially favorable frameworks; PETROBRAS being a clear example. As long as commercial frameworks are kept in place, Brazil will continue to benefit from a dynamic hydrocarbon sector, and PETROBRAS will enjoy continued success. Though the lessons learned are many, they are not widely implemented. Some countries in our hemisphere have moved forward and set up commercial frameworks that have attracted considerable investment. Like Brazil , now with the commercial frameworks in place, a limited few are in the process of, or are considering, partially privatizing their national oil (or gas) company. Mexico faces both these challenges today. The country could benefit from the implementation of adequate commercial frameworks that would allow for private investment and would define commercial and for-profit objectives for its national oil company. However, political and legal hurdles remain.

January 25 - Dr. Gülen took part in the AEI Conference "Electricity Deregulation, Texas-Style" presenting the legislative history based on a chapter he and Pat Wood III are writing for an upcoming book on electricity deregulation in Texas.

On the photo: Dr. Gulen (far left) with other participants of the event.

January 24 - Mariano Gurfinkel spoke at the 3rd Annual LNG & CNG Symposium in Halifax, Nova Scotia, organized by The Canadian Institute, where he presented a brief summary of the recently concluded comprehensive study on energy infrastructure siting in the US.

January 16 - Mariano Gurfinkel spoke at the monthly meeting of the Houston Chapter of the International Association for Energy Economics (IAEE). The meeting featured a panel discussion on the current state of and prospects for the energy sector in Mexico. The panel included the following speakers: Dagoberto "Bob" Brito and Peter Hartley of Rice University and was moderated by George Baker, of Baker and Associates. The presentation was titled "What Should Power Mexico's Growth?"

January 14-15 - Dr. Michelle Michot Foss spoke at two high level seminars on energy security for Algerian energy, interior, and defense officials and personnel. The Energy Infrastructure Security Seminar was sponsored by ANHAM, LLC, a leading infrastructure and risk management contracting firm based in Dubai. Dr. Michot Foss addressed "Strategic Priorities for Energy Infrastructure Security" on a panel led by Admiral James Loy, The Cohen Group (former deputy secretary, Homeland Security and administrator, Transportation Security Administration) and including Mr. Dan McWhorter, ANHAM, LLC; Mr. Len Ogier, Ogier Electronics; and Mr. Mark Garver, Specialty Intelligence Group, LLP. The conference took place in Algiers January 14-15, 2008.

December 6-7 - CEE held its annual meeting activities. The meeting kicked-off with a lecture by Dr. Jonathan Stern (Oxford Institute for Energy Studies) on the "Views on European Gas Markets, Implications for the Atlantic Basin" held on Thursday, December 6. Activities continued the next day with CEE presentations of the past year's activities and projects, introduction of new project areas for discussion, and invited guest comments by Shirley Neff (AOPL) and Fisoye Delano (NPDC).

On the photo: Dr. Stern presenting at the CEE annual meeting

December 4 - Dr. Mariano Gurfinkel spoke at the monthly luncheon of the Society of Petroleum Evaluation Engineers, Houston Chapter. He discussed scenarios and future prospects of Venezuela and the exploitation of 1.3 trillion barrel Faja del Orinoco.

December 4 - CEE hosted Tomoko Murakami (Leader of the Nuclear Energy Group) and Ayako Sugino (Researcher in the International Strategy Analysis Group) from Japan's Institute of Energy Economics and discussed prospects for nuclear energy and the growing importance of natural gas in power generation among other topics.

December 3-7 - CEE held the Executive Program: Commercial best Practices for Oil & Gas Value Chains. Program candidates represented Argentina, Hong Kong, Madagascar, Nigeria, the UK and the US. The program included lectures on energy value chains, commercial frameworks, project finance, and international petroleum agreements given by CEE senior staff and guest speakers. On the photo: program participants and CEE instructors.

November 29-30 - CEE's Michelle Foss, Mariano Gurfinkel and Gurcan Gulen taught a couse on "Economics & Technology of the Crude Oil, Natural Gas and LNG Value Chains" as part of the Energy Finance Certificate program offered by the McCombs School of Business.

November 12 - CEE hosted a delegation from Brazil's National Petroleum, Natural Gas and Biofuels Agency. The group was visiting the United States as part of the Natural Gas and Biofuels Regulatory Policies Orientation visit organized by the U.S. Trade & Development. Dr. Gulen discussed LNG and biofuels trends in the US..

November 2 - CEE hosted a Strategy and Regulatory Policy Roundtable for the American Gas Association (AGA) member companies.

November 16 - The Energy Forum at Baker Institute for Public Policy (BIPP) and Center for Energy Economics (CEE), BEG/JSG/UT co-hosted a conference on Natural Gas in North America: Markets and Security. The conference was occasion to profile research and activities at BIPP and CEE related to US, North American and global natural gas. Dr. Michot Foss organized and chaired Session II, North American Demand and Competition of Fuels in Gas-Consuming Industries. Also participating were Glenn Sweetman, Director, International, Economic and Greenhouse Gases Division, US Energy Information Administration; Brad Williams, President, Spitfire Advisors & Investments and Principal, Floridian Gas Storage Co., LLC; and Dr. David Burns, Director, Refinery Services, Praxair, Inc. Dr. Michot Foss presented 10 key observations from work completed and underway at CEE on national and international natural gas markets (see slides) stemming from research published by CEE and Oxford University (Oxford Institute for Energy Studies) and CEE's LNG research and public education consortium. Dr. Michot Foss also announced the upcoming release of publications from CEE's year-long study of economic and community benefits and LNG facility siting. Mr. Sweatman commented on demand for natural gas from EIA's annual modeling and recent scenarios related to potential climate change mitigation (read EIA outlook). Dr. Burns provided an overview of key strategies available to industrial natural gas customers for heat applications (for example, see this article regarding efficiency gains associated with Praxair's oxy-fuel glass furnaces). Mr. Williams provided a lively case study on energy demand in Florida and consequences for energy planning associated with needed natural gas supply and storage infrastructure (link). A consistent theme for the panel were potential gains to be made from demand-side improvements in major customer segments (power generation and industrial use) within the context of growing demand for natural gas to meet climate and economic development targets.

October 29 - Mariano Gurfinkel gave a summary presentation on the recently completed National Petroleum Council study, "Facing the Hard Truths About Energy" to the UT Department of Petroleum and Geosystems Engineering as part of its Graduate Seminars. The study was performed in response to a request from the Secretary of Energy captured in a letter dated October 5, 2005. The National Petroleum Council conducted a comprehensive study considering the future of oil and natural gas to 2030 in the context of the global energy system. The complexity of today's integrated energy markets and the urgency surrounding today's energy issues demanded a study that included: an integrated view of supply, demand, infrastructure, technology, and geopolitics; a comprehensive review of public and aggregated proprietary energy outlooks; in-depth analysis of technology trends and opportunities; policy options viewed through economic, security, and environmental lenses; more than 350 participants from diverse backgrounds and organizations; dialogue with more than 1,000 persons and groups actively involved in energy. The Council found that total global demand for energy is projected to grow by 50-60 percent by 2030, driven by increasing population and the pursuit of improving living standards. At the same time, there are accumulating risks to the supply of reliable, affordable energy to meet this growth, including political hurdles, infrastructure requirements, and availability of a trained work force. We will need all economic, environmentally responsible energy sources to assure adequate, reliable supply.

October 26 - A guest comment by Mariano Gurfinkel appeared in the October 22-26, 2007 volume of the Inter-American Dialogue's Latin American Advisor on Energy. The topic was the recently completed natural gas pipeline from Colombia to its eastern neighbor. [more]

October 18 - Mariano Gurfinkel participated in a panel discussion on the topic of Peak Oil during the recent 2007 Houston World Oil Conference hosted by ASPO. The panel discussion centered on concerns about Peak Oil, its time frame and possible policy actions. Dr. Gurfinkel shared with the conference participants his view that resource constraints in general or resulting production limitations of "cheap" crude are not the problem.
"Increasing demand and lagging investment in supply and the resulting continued market tightness should be the focus, especially with trends towards non-market based agreements among key suppliers and large consumers. If market mechanisms are allowed to function, waste will be reduced and investment in other resources and alternatives will be made as needed. Surely there will be commercial winners and losers but governments should avoid the temptation to pick technology, even when energy security is an important factor. Rather policies should create mechanisms that capture the identified externalities and let humans do what they do best, innovate!"
Finally, Dr. Gurfinkel shared with the audience an excerpt of ongoing research at the Center which studies the evolution of energy use to fuels with ever higher energy availability even though in recent times they are trending to have their origin in resources with lower energy availability.

October 17 - CEE was named a Finalist for the prestigious World Oil Awards in the Best Outreach Program category. CEE's nomination featured its "Africa Partnerships," which are focused on helping to prepare younger generations of the energy industry professionals and developing understanding of the energy industry among the general public in Africa as well as educating the Houston community about Africa energy sector issues. As recognized by the World Oil Advisory Board and the Next Generation Committee, the awards are designed to "applaud and showcase innovative thinking and next-generation leadership."

October 9 - Dr. Mariano Gurfinkel was interviewed for and quoted in an article "Technology Left in Venezuela by Exxon, Conoco May Aid Rivals," by Isabel Ordonez of Dow Jones Newswires. [read]

October 8 - Dr. Foss was a speaker at the Fourth Annual Meeting of the Science and Technology in Society forum (STS Forum), held from October 7 to October 9 in Kyoto, Japan. [more]

October 1 - Dr. Foss was a panelist on "What are the Trade-Offs/Consequences/Options?" panel at the Latin American Forum III, held on September 30-October 2 in Huatulco, Oaxaca, Mexico. The panel was part of the session named "Energy Matrix for Latin America." The event was the next in the series of activities of the JSG's Latin American Forum on Energy and the Environment.

September 27 - Dr. Michelle Foss presented "Electricity Sector Restructuring" and "Global LNG Developments" at the international Energy in Angola conference, which was held in Luanda. The 2-day event was organized jointly by the Centro de Estudos e Investigacao Cientifica (CEIC) at Universidade Catolica de Angola and the CEE. The event was sponsored by the USAID, OSISA, ESSO and the Angola Education Assistance Fund (AEAF). CEE and AEAF have an ongoing partnership in Angola, working with CEIC on joint publications (such as the Angola Energy Guide), conferences, and energy curriculum development.

9/17-19 - CEE at the Energy Economics Conference
This week in Houston, CEE is leading the 27th North American Conference of the U.S. Association for Energy Economics (USAEE/IAEE). CEE is an institutional supporter of this conference, which is a key event for Houston, the U.S., and international energy economics professionals from industry, service companies, the financial sector, national labs and Federal agencies, and universities and research institutes. Dr. Michelle Michot Foss is the USAEE emeritus chair and presided over keynotes by Charles Zimmerman of Wal-Mart and Houston Mayor Bill White yesterday, the opening day of the conference.
Four papers are being presented by CEE researchers. Dr. Mariano Gurfinkel - "The Elusive Optimal Fiscal Regime for an Extra-Heavy Oil Resource: A Case Study," (by Gurfinkel, Gulen, Foss, Makaryan, Volkov; abstract); Dr. Gurcan Gulen will present "Supporting Biofuels: A Case Study on the Law of Unintended Consequences?" (paper by Gulen, B. Shenoy; abstract); Miranda Ferrell Wainberg, "Commercial Frameworks for National Oil Companies" (paper by Wainberg, Volkov, Foss; abstract); and Dmitry Volkov will present "Russian Gas Abyss" (paper by Volkov, Makaryan; abstract). CEE is also supporting a paper by Mr. Javier H. Estrada (President, Analitica Energetica S.C.) titled "Trans-Boundary Oil and Gas Fields between Mexico and the USA," see abstract. CEE senior researchers are leading plenary sessions as well. Dr. Gurfinkel will be presiding over a dual plenary session on LNG today, September 18. Dr. Gulen will preside on a concurrent session on Geopolitics of Energy Supply and participate in a Training Session on ERCOT with the Gulf Coast Power Association (GCPA). CEE is also sponsoring a major session on legal and regulatory issues for energy development in North America. CEE, the Jackson School of Geosciences, and McCombs School of Business have a joint exhibit at the conference, displaying information about various research and educational programs.

August 27 - New Grant in Mexico
CEE-UT along with the Jackson School of Geosciences collaborators, Dr. Chip Groat and the Energy and Earth Resources degree program (EER), was awarded a new grant by Higher Education for Development to establish a partnership with Instituto Tecnológico Autónomo de México (ITAM). The focus for the grant is energy sector advancement in Mexico. Activities to be undertaken with our lead partner at ITAM, Dr. Duncan Wood, and his colleagues include workshops and research papers on Mexico 's energy situation and a student exchange. Four qualifying ITAM students will receive scholarships to pursue master degrees in the EER program over the next two year. CEE-UT and JSG will also host faculty from ITAM and engage in other efforts aimed at boosting capacity for energy economics and policy education and research in Mexico at a most important time.
Read award announcement from HED
Download CEE HED grant fact sheet

New Era delegate from Angola receives a Certificate of Completion from Dr. Foss