In recent years, natural gas prices in the United States have gone from historic highs of over $12 per mmBtu in the summer of 2008, to under $2.50/mmBtu in 2012. While demand side factors – such as the crisis in global financial markets – were partially to blame, many would argue that the real story is on the supply side, where increased production of shale gas – a form of unconventional natural gas trapped in leafy shale rock – drove gas prices down across the continent. The impact of low gas prices was felt in the form of cheap electricity, heating, and feedstocks to consumers and industry, which in turn bolstered the economic recovery. As an added bonus, cheap gas displaced dirty coal in power generation, reducing carbon emissions and pollution.

It is no wonder then, that when a recent U.S. Energy Information Administration publication on world wide reserves of shale gas crowned China as the holder of the world’s largest shale gas reserves, many inside and outside the Middle Kingdom were intrigued and enthralled by the possibilities of what shale gas could mean for China – in terms of climate, pollution, quality of life – and what it could mean for the broader international gas trade.

In this upcoming EWG talk, we will highlight some of the current activities and future plans for unconventional gas development in China. We will focus on the political, institutional, and commercial forces at play, and discuss some of the potential upsides and pitfalls that China will encounter on the road to realizing its unconventional gas potential.

State-owned oil and natural gas companies, such as Saudi Aramco, Petróleos de Venezuela and China National Petroleum Corp., own 73 percent of the world's oil reserves and 68 percent of its natural gas. They bankroll governments across the globe. Although national oil companies superficially resemble private-sector companies, they often behave in very different ways.

Oil and Governance: State-Owned Enterprises and the World Energy Supply (Cambridge University Press, 2012), a new book commissioned by Stanford University's Program on Energy and Sustainable Development, explains the variation in performance and strategy for such state-owned enterprises. The book, which Mark Thurber co-edited and contributed to, also provides fresh insights into the future of the oil industry and the politics of the oil-rich countries where national oil companies dominate.

Though national oil companies have often been the subject of case studies, for the first time multiple case studies followed a common research design, which aided the relative ranking of performance and the evaluation of hypotheses about such companies' performance. Interestingly, some of the worst performing of these operations belong to countries quite unfriendly to the United States. Mark will also discuss the industrial structure of the oil industry, and the politics and administration of national oil companies. One result of the dominance of this structure for oil markets is that high prices often lead to lower supplies and low prices lead to increased production -- the opposite response of private companies.

To view seminar video, click here.

This is apart of the Weekly Energy Seminar series managed by the Precourt Institute for Energy and the Woods Institute for the Environment at Stanford.

On behalf of PESD, Stanford co-hosts PIE, TomKat, and SIEPR, and external sponsors Pillsbury Winthrop Shaw Pittman and the Kauffman Foundation, convened an all-day conference on September 15 on “Transmission Policies to Unlock America’s Renewable Energy Resources”   
   
The traditional transmission paradigm was well-adapted to fossil fuel plants built near cities and operated by vertically-integrated utilities.  We need a whole new transmission paradigm to realize the potential of intermittent wind and solar generation in today’s wholesale markets.  
   
The conference sessions (see Agenda) focused on different aspects of what this new paradigm will have to look like, focusing on the Western region.  How can markets for renewable energy credits help drive transmission policy?  Who will pay for new transmission that straddles state lines and service areas?  How can environmental impacts be weighed without bogging down transmission planning?  
   
Our distinguished speakers and discussants have many years of experience working on precisely these issues from the academic, industry, nonprofit, and government perspectives.  This event brought new insights into how to move forward on transmission in the West, and we thank everyone who participated.

For conference photos, click here

Opening remarks by Frank Wolak, Director, Program on Energy and Sustainable Development

Session 1: The Paradigm Shift in the Role of the Transmission Network

Speaker—Lorenzo Kristov, Principle, Market and Infrastructure Policy, California Independent System Operator (ISO)

Discussants: James Bushnell, Associate Professor, UC Davis Department of Economics and Udi Helman, Director, Economic and Pricing Analysis, BrightSource Energy

Session 2: Policy Tools for Meeting Renewable Energy Goals

Speaker—Harry Singh, Vice President, Goldman Sachs

Discussants: Sydney Berwager, Director, Strategy Integration, Bonneville Power Administration and Julie Fitch, Director, Energy Division, California Public Utilities Commission

Session 3: Developing a Regional Transmission Planning Process

Speaker—Brad Nickell, Director of Transportation Expansion Planning Western Electricity Coordinating Council

Discussants: Scott Cauchois, Transmission Expansion Planning Policy committee Chair, Western Electricity Coordinating Counsil and Rebecca Wagner, Commissioner, Nevada Public Utilities Commission

Session 4: Paying for Transmission

Speaker—Douglas Kimmelman, Senior Partner, Energy Capital Partners and Perry Cole, Managing Director, Energy Captial Partners

Discussants: Michael Hindus, Partner, Pillsbury Winthrop Shaw Pittman LLP and Darrel Thorson, VP, Business Development North America, BP Wind Energy

Session 5: Environmental Impacts of Transmission Siting

Speaker—Sean Gallagher, Managing Director, Government and Regulatory Affairs, K Road Power

Discussants: Julia Souder, Project Development Manager, Clean Line Energy Partners and Carl Zichella, Director of Western Transmission, Natural Resources Defense Council

Session 6: Lessons for Transmission Planning and Pricing   
from Other Jurisdictions

Speaker—Benjamin Hobbs, Director, Environment, Energy, Sustainability,  
and Health Institute, Johns Hopkins University

Discussants: Cristian Munoz, Engineer, AES Gener, Santiago, Chile and  
Alex Papalexopoulos, President and CEO, ECCO International, Inc.