Le Grand Syllabus 2016/2017
ments can be used for hedging purposes and price discovery in the oil market. The module is designed to be accessible both to those with little prior knowledge of ﬁnance issues/risk management principles. By the end of the module students would have learned to : Assess the main features of the current international oil pricing system and the process of price formation in oil markets ; Analyse the interaction between the physical and ﬁnancial layers of the oil market ; Introduce the main ﬁnancial instruments used in the oil markets and how these could be used for hedging purposes ; Derive the oil forward curve and assess the importance of ﬁnancial layers in the price discovery function ; Assess the role of ﬁnancial players and ﬁnancial layers and their impact on oil price movements. Required reading : Fattouh, B. (2011), ‘An Anatomy of the Crude Oil Pricing System', OIES WPM 40, Oxford : Oxford Institute for Energy Studies. http ://www.oxfordenergy.org/wpcms/ wp-content/uploads/2011/03/WPM40-AnAnatomyoftheCrudeOilPricingSystem-BassamFattouh-2011.pdf ; Fattouh, B. and L. Mahadeva (2012), Finacialization in Oil Markets : Lessons for Policy, Oxford Energy Comment, December. http ://www.oxfordenergy.org/wpcms/wp-content/ uploads/2012/12/Financialization-in-oil-markets. pdf ; Fattouh, B. L. Kilian and L. Mahadeva (2013), The Role of Speculation in Oil Markets : What Have We Learned So Far ?, The Energy Journal, Vol. 34, No.3. http ://www.oxfordenergy. org/wpcms/wp-content/uploads/2012/08/WPM45.pdf ; Fattouh, B. and L. Mahadeva (2013), ‘OPEC : What Difference has it Made ?' Annual Review of Resource Economics, Forthcoming. http ://www.oxfordenergy.org/wpcms/wp-content/ uploads/2013/01/MEP-3.pdf.
Pedagogical format : Seminar Course validation : Students are expected to attend all classes and to prepare each class by reading one article of around 10 pages. The assignment consists of a) participation in a simulation exercise (in the style of talk show) plus speaking notes and a 2-3 page paper after the simulation to be prepared by each student and b) and end of term paper in the form of a memorandum to the CEO or Minister of around 2,000 to 3,000 words. - Performance in the simulation : 10% ; - 2-3-page paper following the simulation : 20% ; - End of term paper : 70%. Workload : Class attendance ; - 30-minute reading in preparation for each class ; - Preparation of simulation (talk show) ; - End-of-term paper (of between 2,000 to 3,000 words). Pedagogical method : Lecture and discussion ; - Case studies discussed in class ; - Simulations (talk show) ; - Quiz (to recapitulate). Course Description : This course focuses on energy policy, which is described as the choices that governments make to address energy policy objectives, notably in the realm of supply, distribution or demand with the aim of ensuring 'security of supply' (importers) or security of demand (exporters). Because of the overwhelming importance of the energy sector, which is fundamental to all economic and other activity, governments accept the need for a separate policy. This typically covers a broad range of policy areas such as market organization, taxation, ownership (public versus private) environmental protection & climate change, infrastructure, research, technology, trade, foreign and even defence policy. Tools that governments apply are as diverse as legislation, international treaties, incentives to investment, guidelines, information as well as 'hard' security, i.e. the military. The course will use case studies to describe and examine typical 'energy policy interventions' in a number of selected cases, e.g. market organization, renewable support mechanisms, taxation or carbon policies. In the light of the evolving 'energy transitions', particular stress although not exclusively will be laid on the electricity sector.
Semester : Spring Number of hours : 24 Language of tuition : English
Teachers : Christian EGENHOFER (Chercheur). 1534