Online Lecture Presentation

Students: Adriana de Castro Lopes Lucas Carvalho Leite Professor: Elana Freeman Lecture: Non-Renewable Energy Resources Author: Richard Schmalensee: Howard W. Johnson Professor of Management, Emeritus Professor of Economics, Emeritus Dean Emeritus at the MIT Sloan School of Management. Introduction: Short view of the subject: Role of Non-Renewable energy resources in the worldwide scenario (Oil, Natural Gas, Coal and Uranium) General energy world market Natural Gas (New polemic ways of obtaining it) Summary: 1. Hotelling Classic Theory Applications Missing points of the classic theory 2. Oil Reserves Regions in which oil concentration occurs Countries that explore OPEC (Members) Progression of proved reserve along time (causes) Transportation Oil pipes and Tanks Market Biggest Producers (National Companies) OPEC (Market Influence) New discovers of oil and world repercussion (Brasil) 3. Uranium Overall view of market (Reserve and Production)

4. Coal Reserves Countries that have vs. Countries that use USA: Production concentrated but Usage not Transportation Issues (High weight-to-value) Market Different prices (Not global market) China`s huge increase of the use of coal 5. Natural Gas Reserves Regions with concentration Countries that Explore Relation between the location of gas and oil (OPEC do not control gas) Progression of proved reserves along time Transportation Pipes vs. LNG- Liquefied Natural Gas Market Cheaper than oil US prices < EU prices < < Asian prices (LNG) Fracking New cheap method to make gas from shale Environmental issues vs. Market space Critiques: The professor presents facts; however, he does not emphasize the reasons that caused the facts The explanation about some resources such as Uranium, which is an important source for the nuclear energy production that directly affects the economical scenario, is too short and not taken as relevant as it could be. The professor presents enough arguments (facts) to build a clear vision of the energy market to the students. The lecture contains outdated information in the slides, which causes several doubts in the students. The professor could present an analyzed prediction for the future in energy market, which could be useful to consolidate the students opinion about the lecture`s theme.

Questions: a- What is the most used source of energy used in your country? b- What are the pros and cons of using non-renewable energy resources? c- How do you think the use of fracking" by the United States of America to produce natural gas from shale would interfere in the energy market from the country/world? d- What is your opinion about nuclear energy? Does the fact of being a clean and effective source of energy override the risk of contamination? e- The professor Schmalensee says that with the exploration of fracking the scenario of proved reserves of gas will change. Do you agree with that? f- How, in your opinion, will the future of energy market be different from what it is today? g- Could the suddenly increase of the use of coal by Chinese government be related to the their economical advances? Could the use of fracking be a US response to this advances? h- In terms of efficiency, cost and environmental issues, what of the four energies (oil, natural gas, coal and uranium) do you think is better?