Thought leaders and experts offer the most current information and insights into energy finance
Energy Finance and Economics offers the most up-to-date information and compelling insights into the finance and economics of energy. With contributions from today's thought leaders who are experts in various areas of energy finance and economics, the book provides an overview of the energy industry and addresses issues concerning energy finance and economics.
The book focuses on a range of topics including corporate finance relevant to the oil and gas industry as well as addressing issues of unconventional, renewable, and alternative energy.
- A timely compendium of information and insights centering on topics related to energy finance
- Written by Betty and Russell Simkins, two experts on the topic of the economics of energy
- Covers special issues related to energy finance such as hybrid cars, energy hedging, and other timely topics
In one handy resource, the editors have collected the best-thinking on energy finance.
About the Author
BETTY SIMKINS, PhD, is the Williams Companies Professorof Business and a Professor of Finance in the Department of Financeat Oklahoma State University's (OSU) Spears School of Business. Sheteaches energy finance, a course that she developed, at both theundergraduate and graduate levels, and also teaches executiveeducation courses on energy finance for companies globally. Herprimary area of research is risk management, including energy riskmanagement, and she has published extensively in this area. Simkinshas received a number of teaching awards at OSU, including theRegents Distinguished Teaching Award. She currently serves on theBoard of Directors for the Financial Management Association, ascoeditor of the Journal of Applied Finance, editor of FMAOnline, and as past president of the Eastern FinanceAssociation. Simkins worked in the corporate world forConocoPhillips and Williams Companies.
RUSSELL SIMKINS is Manager of Proposal Services in theCollege of Engineering, Architecture, and Technology at OklahomaState University (OSU) and a licensed Professional Engineer in thestate of Oklahoma. He has over thirty years of engineeringexperience and worked for ConocoPhillips, Fractionation ResearchInc., Lubrizol Corporation, Southwest Research Institute, and theU.S. Department of Energy. Simkins has also been active in theengineering profession as a member of various working groups in theSociety of Automotive Engineers (SAE), Coordinating ResearchCouncil (CRC), and American Society of Testing Materials (ASTM)dealing with fuels and lubricants.
Table of Contents
1 An Introduction to Energy Finance and Economics 1Betty J. Simkins and Russell E. Simkins
PART ONE An Overview of Energy Finance and Economics
2 Geopolitics andWorld EnergyMarkets 19Robert W. Kolb
3 Energy Economics: Past, Present, and Prospects for the Future49James L. Williams and Betty J. Simkins
4 Sustainable Energy: Myths and Realities 79Olamide O. Shadiya, Jane A. Talkington, John Mowen, Karen High,and Josh L. Wiener
5 A Brief Introduction to the Petroleum Industry: From Crude Oiland Natural Gas to Petrochemicals and Their Products 107Russell E. Simkins and Kenneth A. Borokhovich
6 The Economics of Renewable Energy 129Brad Carson
7 How Our Political Views Affect Our View of Energy Prices145Sheridan Titman
PART TWO Financial and Economic Analysis in the EnergyIndustry
8 Oil and Gas Accounting 151L. Charles Evans III
9 Financial Statement Analysis for Oil and Gas Companies andCompetitive Benchmarking 181Siamak Javadi, Betty J. Simkins, and Mary E. Wicker
10 Petroleum Economics, Risk and Opportunity Analysis: SomePractical Perspectives 229David A. Wood
11 Real Options and Applications in the Energy Industry253Betty J. Simkins and Kris Kemper
12 International Petroleum Fiscal System Design and Analysis269David Johnston
13 Financing Large Energy Projects 313Stephen V. Arbogast and Praveen Kumar
14 Financing Bio-Fuels Projects: Case Study Lessons 343Stephen V. Arbogast
PART THREE Energy Risk Management and Related Topics
15 Energy Derivatives and Markets 365Craig Pirrong and Mohsen Mollagholamali
16 Introduction to Energy Risk Management 379Ivilina Popova and Betty J. Simkins
17 Risks in Trading Energy Commodities 411Divya Krishnan
18 Carbon Management and Environmental Issues 425Evgenia Golubeva
19 Hedging and Value in the U.S. Airline Industry 443David A. Carter, Daniel A. Rogers, and Betty J. Simkins
PART FOUR Case Studies
20 PKO Resources, Inc.: Valuing a Producing Oil and Gas Property467John D. Martin, J. Douglas Ramsey, and Sheridan Titman
21 Financial Analysis of the Purchase of a Hybrid ConsumerVehicle 477Don M. Chance, Pratik Dhar, and Betty J. Simkins
22 ExxonMobil Corp.’s Acquisition of XTO Energy, Inc.: AnExercise in Valuation 491Allissa A. Lee and Betty J. Simkins
23 Southwest Airlines: The Blended Winglet Project 513Aaron Martin, Daniel A. Rogers, and Betty J. Simkins
24 Wind Energy Power Company, Inc. (A): Analyzing a Wind EnergyInvestment 525John D. Martin, J. Douglas Ramsey, and Sheridan Titman
25 A Case Study on Risk Management: Lessons from the Collapse ofAmaranth Advisors LLC 543Ludwig Chincarini