Abstract: PART I COMPETITION AND ENERGY LAW 1. The Competition Objective 2. The EU Legal Order and Energy 3. The EU System of Energy Regulation PART II SECTOR REGULATION 4. Introduction to Part II: Sector Regulation 5. Electricity 6. Gas 7. Oil 8. Coal 9. Nuclear Energy 10. Renewable Energy PART III COMPETITION LAW 11. The Application of Competition Law 12. Competition in Upstream Markets 13. Competition in Downstream Markets 14. Cross-Border Mergers and Acquisitions 15. State Aid 16. Special and Exclusive Rights PART IV COMPETING OBJECTIVES 17. Environmental Protection 18. Energy Security PART V THE FUTURE OF COMPETITION LAW IN ENERGY MARKETS 19. Conclusions APPENDICES

Abstract: RUSSIA VS. SAUDI ARABIA THE AMERICAN CAMPAIGN against terrorism may be grabbing the headlines, but another battle is being waged with perhaps equally significant long-term implications: the contest for energy dominance between the world's two largest oil exporters, Saudi Arabia and Russia. This battle will have fundamental consequences for the world's economy, U.S. energy security, Russia's global role, the future relevance of Saudi Arabia, and the clout of the Organization of Petroleum Exporting Countries (OPEC). The contest emerged suddenly and unexpectedly. For each ofthe past two years, Russia has quietly but persistently increased its annual oil output at a rate of nearly half a million barrels a day (mbd)-the largest single increment of increased output of any country in the world. With the world economy and world oil demand stagnating, Saudi Arabia and its OPEC partners therefore opted to reduce their output by 3.5 mbd. Then, on January 1, 2002, OPEC cut output by another 1.5 mbd to stave off a price collapse. Even though Moscow made a symbolic cut in out put as well, OPEC has not welcomed Russia's gain at the cartel's expense. Russia and the Soviet successor states can easily continue to increase oil output at this rate for years to come. The victims of that increase, in

Abstract: The Caspian Sea region is important to world energy markets because it holds large reserves of undeveloped oil and natural gas. In order to fully utilize these resources several challenges need to be addressed. These include an accurate assessment of the region’s hydrocarbon resources; rivalries between regional and international powers; domestic ethnic conflicts; and lack of appropriate export routes. This study examines these four obstacles. It argues that the region could help increase world energy security by diversifying global sources of supply; however, the notion that the Caspian’s oil and gas can be the panacea to long-term global energy security is misguided.

Abstract: Integrated Energy Systems (IES) combine on-site power or distributed generation technologies with thermally activated technologies to provide cooling, heating, humidity control, energy storage and/or other process functions using thermal energy normally wasted in the production of electricity/power. IES produce electricity and byproduct thermal energy onsite, with the potential of converting 80 percent or more of the fuel into useable energy. IES have the potential to offer the nation the benefits of unprecedented energy efficiency gains, consumer choice and energy security. It may also dramatically reduce industrial and commercial building sector carbon and air pollutant emissions and increase source energy efficiency. Applications of distributed energy and Combined heat and power (CHP) in ''Commercial and Institutional Buildings'' have, however, been historically limited due to insufficient use of byproduct thermal energy, particularly during summer months when heating is at a minimum. In recent years, custom engineered systems have evolved incorporating potentially high-value services from Thermally Activated Technologies (TAT) like cooling and humidity control. Such TAT equipment can be integrated into a CHP system to utilize the byproduct heat output effectively to provide absorption cooling or desiccant humidity control for the building during these summer months. IES can therefore expand the potential thermal energy services and thereby extend the conventional CHP market into building sector applications that could not be economically served by CHP alone. Now more than ever, these combined cooling, heating and humidity control systems (IES) can potentially decrease carbon and air pollutant emissions, while improving source energy efficiency in the buildings sector. Even with these improvements over conventional CHP systems, IES face significant technological and economic hurdles. Of crucial importance to the success of IES is the ability to treat the heating, ventilation, air conditioning, water heating, lighting, and power systems loads as parts of an integrated system, serving the majority of these loads either directly or indirectly from the CHP output. The CHP Technology Roadmaps (Buildings and Industry) have focused research and development on a comprehensive integration approach: component integration, equipment integration, packaged and modular system development, system integration with the grid, and system integration with building and process loads. This marked change in technology research and development has led to the creation of a new acronym to better reflect the nature of development in this important area of energy efficiency: Integrated Energy Systems (IES). Throughout this report, the terms ''CHP'' and ''IES'' will sometimes be used interchangeably, with CHP generally reserved for the electricity and heat generating technology subsystem portion of an IES. The focus of this study is to examine the potential for IES in buildings when the system perspective is taken, and the IES is employed as a dynamic system, not just as conventional CHP. This effort is designed to determine market potential by analyzing IES performance on an hour-by-hour basis, examining the full range of building types, their loads and timing, and assessing how these loads can be technically and economically met by IES.

Abstract: Foreword J.A. Baker III Preface List of Abbreviations Notes on the Contributors Introduction A.M.Jaffe & E.Djerejian PART I: BREAKING NEW GROUND: CASPAIN REGION IN THE TWENTY-FIRST CENTURY Geology and Petroleum Potential A.Belopolsky & M.Talwani Confronting Independence: Political Overview M.B.Olcott Economies and Energy Y.Kalyuzhnova Islam and Energy Security M.Haghayeghi & F.R. von der Mehden PART II: REACHING A WORLD MARKET: PIPELINES, TRANSIT ROUTES AND PROCESSING PLANTS The Economics of Pipeline Routes: The Conundrum of Oil Exports from the Caspian Basin R.Soligo & A.M.Jaffe Integration in the World Infrastructure: Oil and Gas Processing Industries in the Caspian Region A.Kalyuzhnova, J.Lee & J.Nanay Convergent Economies: Implications for World Energy Use R.C.Sickles & P.T.Hultberg PART III: NATIONAL INTERESTS IN THE CASPAIN BASIN Russia's National Interests in the Caspian Region M.Margelov U.S. National Interests: Getting Beyond the Hype J.Barnes Turkish National Interests G.Winrow Conclusion D.Lynch Index

Abstract: SUMMARY During the period of nuclear power’s rapid growth, shared assumptions regarding uranium resources and technological capabilities led the majority of industrial nations to remarkably similar strategies for nuclear power deployment. These common assumptions motivated the choice, more than 40 years ago, of the Light Water Reactor (LWR) as the near-term power reactor, to be followed, as soon as possible, by the introduction and deployment of the Fast Breeder Reactor (FBR). The FBR, which uses much less uranium than an LWR of the same capacity, was a crucial part of the strategy because uranium was then believed to be a scarce resource. This strategy, based on the LWR producing the startup fuel for the FBR, implicitly included spent fuel reprocessing, plutonium recycle, and disposal of separated wastes in geologic repositories. Nations with limited indigenous energy reserves, most notably France and Japan, made particularly strong commitments to this strategy. This article was originally presented as a paper at the PARES Workshop: Energy Secu

Abstract: Use of natural gas in transit bus fleets has grown over the last decade. Often motivated by air quality concerns, the use of natural gas also contributes to national and local energy security. Approximately 9% of the U.S. transit fleet in 2001 was composed of buses operating on some form of natural gas and even more were on order. While some agencies have achieved success with their natural gas programs, others report difficulties and some have suspended their natural gas use altogether. What makes an agency successful in implementing natural gas into their operations? This paper reviews the experience of agencies with natural gas to determine the answer and to provide guidance on how fleets can effectively duplicate the successes and address or avoid the challenges.

Abstract: This paper describes the World Bank Group's strategic perspective on three particularly important challenges related to the supply and use of energy in the new century: economic growth and poverty reduction; mitigating environmental impacts, including global climate change; and enhancing energy security. The linkages between these themes are increasingly recognized worldwide. The paper provides an institutional view of how the integration of these themes should be addressed over a five to ten year time horizon. Because of the World Bank's mandate and positioning, the paper's emphasis is on the developing and transition economies. The paper also focuses on patterns of energy supply and use, although-given that Earth's climate is already changing and further change is inevitable-adaptation to climate change is a critical issue for developing countries.

Abstract: (2002). A meeting of blood and oil: The Balkan factor in Western energy security. Journal of Southern Europe and the Balkans: Vol. 4, No. 1, pp. 75-89.

Abstract: This working paper explores the European Union vector in the Central and East European (CEE) energy situation, in particular in terms of the CEE countries' energy relationship with Russia. Attention is paid not only to concrete EU energy policies but also to the larger question of European energy markets. EU policies impact the CEE states' energy relationship with Russia through specific EU requirements vis-a-vis the candidate countries, through the side-effects of other EU policies, through the Energy Charter and the Energy Dialogue process with Russia, and through new trends in EU energy thinking and policy striving for the establishment of a more open gas market in Europe. The way these trends and measures will impact the CEE states has to do both with the structural legacies of the COMECON system in these countries - transport and structural dependency, particular energy mixes, low energy efficiency - as well as with the specific nature of their relationship with the EU: these countries are to join the EU at a time of deepened integration and of an unprecedented role of energy in EU policy. The picture that emerges is a mixed one: some of the EU policies and initiatives would greatly increase the CEE states' dependency on energy imports, and thus, on Russian energy, while some would help in the management of this dependency. But it becomes clear that energy security issues will become increasingly important for the CEE states in the next two decades, and this factor should be taken into account in discussions about these countries' integration into the EU

Abstract: This is an edited version of a background paper for the third session of the Eighth International Energy Forum, held in Osaka, Japan, on 21–23 September. The session was entitled: “Interaction among Energy Security, Environmental Issues and Economic Growth”. The paper highlights key technologies or features that are likely to have a significant impact on the world energy scene in the coming two–to–three decades. It begins with the consensus view among most forecasters that world energy demand will continue growing through 2020, with OPEC’s World Energy Model projecting average annual growth of two per cent during this period. The four principal sections of the paper focus on: upstream oil and gas technology; electric power technologies, with sub–divisions on clean fossil fuels, carbon dioxide sequestration, renewables and nuclear power; the transportation sector; and fuel cell technology, together with hydrogen, as a secondary energy–carrier. The paper concludes that, through 2020 and beyond, oil will continue to be the major source fuelling the forecast rise in energy demand, especially in the transportation sector. Gas will play an increasing role in electricity generation, which will continue growing at a faster rate than overall energy demand. The successful deployment of cleaner, more efficient technologies is expected to help coal retain its importance. However, widespread concern about climate change issues may threaten to constrain the growth in demand for fossil fuels, and this concern must be addressed through such measures as CO2 capture and storage sequestration technology. Nuclear power is unlikely to assume a larger role in the global energy mix, unless such fundamental obstacles as economic competitiveness and public acceptance are overcome. Most renewables face challenging environmental and sustainability constraints and require substantial cost reductions to be competitive. Moreover, while fuel cells have many attractive features, including high efficiency and reduced or near–zero emissions, they have many complex material and manufacturing problems and their commercial prospects are limited for the foreseeable future. Therefore, unless unexpected compelling reasons to do otherwise arise, cleaner fossil fuels will continue to dominate the power sector, as well as most other sectors, for decades to come.

Abstract: For both commercial and geopolitical reasons Russia, a key energy producer, has been determined to preserve as much control as possible over the transportation of Caspian oil and gas to the European market. However, alternative energy export routes across the Black Sea region may be used. Black Sea states, though, are also major consumers of Russian energy. Given the intricate nature of pipeline politics, neither a mercantilist nor liberal perspective (that is, Great Game or multiple pipeline scenarios) fully accounts for current realities. Relations between Black Sea states based on mutually beneficial economic ties interconnect with another set of dynamics grounded on commercial rivalry and geopolitical competition.

Abstract: In 1875, the great futurist Jules Verne wrote The Mysterious Island In one dialogue, Verne's main character, Captain Cyrus Harding, suggests that in two hundred and fifty or three hundred years the world would run out of coal and turn to hydrogen for fuel The hydrogen would be produced from water decomposed into its primitive elements and the coalrooms of steamers will, instead of coal, be stored with [hydrogen and oxygen gases], which will burn in the furnaces with enormous calorific power Although Captain Harding failed to anticipate the 20th century emergence of petroleum and natural gas, his prescience may finally be appreciated in the early part of the 21st Over the past several years, clean-burning hydrogen has emerged as the fuel of choice for solving civilization's long-term, sustainable energy supply problems In fact, hydrogen advocates in industry and government are promoting hydrogen as a panacea for the environmental, energy security, and natural resource dilemmas facing society In the transportation sector, fuel cell vehicles (FCVs) operating on hydrogen show much promise, and public funding for FCV development has followed In the US, for example, the government recently committed $15 billion over ten years to support the Freedom Cooperative Automotive Research (Freedom CAR) initiative Freedom CAR is aimed at developing clean, efficient, and affordable hydrogen FCVs in 10-15 years However, expensive research programs cannot by themselves solve the sustainable transportation problem If hydrogen is to ever achieve significant market penetration, then coordinated, systematic market development is needed This article considers the opportunities and barriers facing hydrogen's emergence in future transportation markets Although the article focuses mainly on the United States, the discussion applies readily to situations in other countries

Abstract: Summary form only given. The US Department of Energy's Geothermal Energy program is working across the West to build on their national investment in geothermal energy technology. Called GeoPowering the West, this activity is aimed at identifying and addressing nontechnical barriers to geothermal development. The key focus is capturing the economic and energy security benefits from developing the US nation's abundant geothermal resources.

Abstract: Section I: Energy: An Ecumenical View. The Problem of Energy and Nuclear Matters B.N. Kursunoglu. U.S. Energy Policy and the Nuclear Future E.J. Moniz. Challenge to Nuclear Power in the Next Century, Can They Be Overcome P. Beck, M. Grimston. Section II: Need for Nuclear Energy. Nuclear Technology: Need for New Vision C. Bastin. Nuclear Power in the Context of Critical Global Problems D. Bodansky. Section III: Public Acceptance of Nuclear Energy. Nuclear Energy and Security T.E. Blejuas, et al. Energy Problems of the Future, Can We Solve Them B. Wolfe. Public and Political Support for Nuclear Energy S. Peterson. Nuclear Power: Liability or Asset? M.B. Kratzer. Section IV: Concluding Panel Discussions. Remarks for the Concluding Panel, Global Foundation 1999 Energy Conference, Washington D.C., November 1999 C.P. Zaleski. Section V: After Dinner Speech. Turkey and Energy Security in the Caucasus and Central Asia P.M. Wihbey.

Abstract: A deterministic quantitative model has been developed for use to compare the technical, economical and environment feature of various electric power generating plants. The model, which is based on matrix operations, is used in evaluating the various aspects of energy sources available for the electricity generation systems in a developing country. Several energy sources are chosen which could be considered for production of electricity to meet current and future electricity demands. A complete set of energy sources will include fossil fuel fired power plants, nuclear power plants, and natural-renewable energy power plants. A customized computer code is developed to evaluate the overall function for each system from the performance corresponding to the selected energy attributes includes five area of concerns; energy economy, energy security, environmental protection, socio-economic development and technological aspects for the electric power generations. The model developed in this study is applied to the Indonesian’s electric power sector development. Most of the data required for the model application are obtained from various sources related to power industry in Indonesia, such as the Electricity Generating Authority of Indonesia (Perusahaan Listrik Negara, PLN), Government of Indonesia, World Bank, Asian Development Bank, United Nations, and other sources, both in published and public domains. The optimization technique is kept flexible so that it can accommodate other attributes that will be found to be important according to the decision maker’s preference. By so doing, the model virtually can be used to attack any decision problem with various different attributes to reach an optimal decision concerning the selection of energy sources for electricity generation. The result of this study will be a rank of energy sources for Indonesia power generation systems based on the composite distance of each alternative to the designated optimal source of energy.Copyright © 2002 by ASME

Abstract: The Asia Pacific region has long been heavily dependent on oil imports-particularly from the Middle East-to meet its energy needs. This dependence has increased since the early 1990s, when China joined the ranks of Japan, South Korea, and other Asian nations as a large and rapidly growing oil importer. At the same time, India's oil imports also rose dramatically. With the region's own oil production stagnated and oil demand rising continuously, Asia's reliance on oil imports will reach even higher levels in the coming decades.The region's dependence on oil imports and the dominance of the Middle East oil supply have made energy security a concern for many Asian nations. Supply diversification is one way to address the issue, but oil importing countries in Asia have been hard pressed to find viable alternatives to Middle East oil. The prediction that all major countries in the region, including Indonesia and Malaysia, will be net oil importers within the next 15 years increases the urgent need to diversify.While Asia Pacific has sought to broaden its oil supply, Central Asia has emerged as a potential player in the world energy market. Strategically located between Russia, the Middle East, and Asia Pacific, and adjacent to Iran (a U.S. adversary), Turkey (a Western ally), and Afghanistan (a war-torn country undergoing reconstruction), the geopolitical importance of Central Asia is obvious. More importantly, Central Asia may prove to have potentially large oil and gas reserves and its petroleum production is rising. Even before the terrorist attack on the World Trade Center in September 2001, the United States and other Western powers were greatly interested in Central Asia, given its strategic location and oil and gas potential. The recent conflict in Afghanistan and the role played by Central Asian nations such as Uzbekistan and Georgia, as well as by Russia in the U.S.-led war on terrorism have heightened Central Asia's geopolitical importance.When considering the energy needs of the Asia Pacific region and the potential role of Central Asia, two critical questions present themselves: Can Central Asia be a viable alternative energy supplier, and can an energy triangle be formed between Asia Pacific, the Middle East, and Central Asia? To answer these questions, many factors must be considered and Central Asia's role in addressing the energy supply and security concerns of the Asia Pacific region assessed.Rising Oil Import Dependence in Asia PacificAsia Pacific encompasses East Asia, Southeast Asia, South Asia (including Afghanistan), and Australasia (including the Pacific Islands). In 2001, the region consumed a little over 20 million barrels per day (b/d) of oil, of which 12.6 million b/d were net imports.' This represents an import dependence of 62 percent, up from 49 percent in 1990 (see Figure 1). Despite the 1998 financial crisis and the slowdown of regional and global economic growth in 2001 associated with high oil prices, oil demand in Asia Pacific is poised to grow continuously over the next 15 years, albeit at rates much lower than those seen in the late 1980s and most of the 1990s. With flat regional oil production, overall oil imports-and hence import dependence-are set to rise.A comparison between U.S. and Asia Pacific oil consumption and dependence highlights the seriousness of the latter's reliance on imported oil from a single source-the Middle East. Both regions have oil consumption and oil import dependence, but Asia Pacific's consumption is slightly greater and its import dependence higher. In 2001, the United States consumed 19.6 million b/d of oil with an import dependence of 54 percent, up from 42 percent in 1990." The Asia Pacific region is facing a more precarious situation: More than 90 percent of the region's oil imports comes from the Middle East; only a quarter of U.S. oil imports stems from the Persian Gulf. In terms of total oil consumption, the Middle East accounts for well over half the amount consumed in the Asia Pacific, as compared to less than 15 percent in the United States. …

Abstract: : The importance of the South Caucasus to European security is growing. Recent trips by Lord Robertson to the region underscore NATO resolve to expand security under the Partnership for Peace (PFP) program. Moreover the three South Caucasus states Armenia Azerbaijan and Georgia are moving toward a closer relationship with the Alliance. These developments bode well for future regional stability. Far Countries Strategically located on the southeastern NATO flank the South Caucasus borders Iran Russia and Turkey. Some observers believe that among post-Soviet regions the South Caucasus is second only to the Baltic states in strategic importance to the Alliance because its territory is contiguous with member nation Turkey and is a natural extension of Europe. It also forms a strategic corridor linking Southern Europe with Central Asia that could be used as a conduit for Caspian energy resources which will likely play a significant role in European energy security and the global energy market if regional instability is overcome.

Abstract: Concerns about energy security have dramatically increased since the terrorist attacks on September 11, 2001. If U.S. energy use follows business-as-usual projections, the energy system will become increasingly vulnerable. No quick fixes are available to make the United States energy independent. However, there are energy policies that promote efficiency and the use of renewable energy sources such as wind, biomass, geothermal, and solar can gradually reduce dependence on imported oil and natural gas and reduce the vulnerability of the U.S. energy infrastructure to disruption of supplies or to attack. This article reviews recent analyses by the U.S. Energy Information Administration’s and by the Union of Concerned Scientists. These studies showthat efficiency and renewable energy investments can increase energy security while lowering consumer energy bills and reducing local and global environmental hazards.

Abstract: With the increasing dependence on international oil market, oil security becomes a serious problem in China.Suffered the `oil crisis',developed countries have established effective decurity systems for reducing the risks of oil supply shortage and oil price sluctuation.Being the largest country as well as one of the major oil consumers in the world,China is on doubt confronted with the oil security problem,which is one of the critical issues for China to solve in achieving the socio-economic sustainable development in the 21 st cetury.To deal with such a situation,seven propositions for China are therefore presented.1) Establishing the national oil reserve institutions and completing the resources security system.2)Engaging in resources-oriented diplomacy and creating a favorable environment for Chinese companies to exploit overseas recources.3)Developing long-term resources partnership with neighboring countries and keeping its stability.4)Supporting the development of Chinese transnational corporations and incorporating them into China's global resources strategies.5)Reducing the risk of resources supply shortage by diversifying resources suppliers,to oil supply,for example,establishing multi-importers system,which can avoid the negative influence of monos-supplier on socioeconomic development.6)Reducing oil consumption by building resources-saving economic structure and making great efforts to develop substitute resources.7)Joining and organizing regional energy security systems.

Abstract: Is "Energy Security" A Meaningful Concept? Phil Sharp, long-time chairman of the House Energy Subcommittee, vigorously argued that the best energy security policy is to have lots of people producing and lots of people distributing the energy that the United States needs. This minimizes the risk of a disruption at any one point in the production/distribution chain. In this context, he said that the one enduring energy security question that requires diplomacy, military presence, and the willingness to use force is the concentration of oil reserves, production, and surge capacity in the Middle East. Backing up Sharp, long-time Amoco vice-president John Lyman argued that U.S. energy security is best maintained by ensuring that the United States is, and is perceived to be, fully supportive of free trade and of the use of market forces on a global scale. Vito Stagliano of Resources for the Future argued that energy security is an empty concept used to perpetuate bad, self-serving public policy. He recounted the history of dramatizing energy issues and using energy as a reason for dubious public policy, in which category he included expenditures in excess of $100 billion between 1973 and 1992. The most important contribution to U.S. energy security during that period came not from any of the projects financed by this spending but instead by the de facto death of OPEC. The death of OPEC, he argued, came from the 1981 U.S. government decision to end price controls and reduce regulations on energy output. The 1981 actions spurred the growth of spot and futures markets that disrupted the ability of any government, including those of the OPEC countries, to control oil prices. John Riggs, Principal Deputy Assistant Secretary of the Department of Energy, replied that energy security reminded him of Mark Twain's comment, "The music of Wagner is better than it sounds." That is, while the 1973 and 1980 oil shocks led to some inflated rhetoric and while energy security has been used as a justification for some pork barrel projects, the fact is that the oil shocks did inflict significant economic harm on the United States. True, much (although certainly not all) of this harm arose because of the imposition of price controls, but that should not be used to minimize the effect that the oil shocks had on the economy and therefore the potential effects that a future shock could have. Mr. Riggs also argued that dependence on energy imports can reduce U.S. foreign policy options. As an example, he asked if the United States would have opted to bomb Libya in 1986 had world oil markets been tight? He suggested that the United States might not have taken such a strong stance against Libyan terrorism had the United States been concerned it could provoke another oil price shock. Supply Disruptions The participants agreed that the world oil supply system has changed since the oil crises of the 1970s and 1980s. The system now has much greater flexibility, thanks to a much larger role for market forces. On the other hand, Mr. Riggs cautioned against exaggerating the role of market forces. Since Saudi Arabia can produce oil at two to three dollars per barrel and the world price is seventeen to eighteen dollars, something other than market forces seems to be at work. After noting that regulations and price controls that encumbered oil markets in the past have now been largely eliminated, Hill Huntington of Stanford University's Energy Modelling Forum asked, how well and how quickly would markets work to adjust to a supply shock, and if they did not work quickly enough, would politicians step in with price controls or other such measures. He argued that macroeconomic models show that a doubling of oil prices would cut U.S. GDP by about 5 percent after a period of one and a half years. He argued that in the face of such a considerable price, the U.S. government was likely to adopt offsetting policies. …

Abstract: This article introduces the framework for pooling of electricity among several countries in the Southern African region, which has been put in place for the last few years. The article focuses on the introduction of the legal and institutional framework that has been established and, in parallel, briefly discusses the mechanisms of trading in electricity, available in the region.

Abstract: This is the PROCEEDINGS OF THE 2002 NATIONAL OILHEAT RESEARCH ALLIANCE TECHNOLOGY SYMPOSIUM, which was Held at Oilheat Visions Conference, Rhode Island Convention Center, Providence, Rhode Island, August 20-21, 2002. The specific objectives of this conference are to: (1) identify and evaluate the current state-of-the-art and recommend new initiatives for higher efficiency, a cleaner environment, and to satisfy consumer needs cost-effectively, reliably, and safely; and (2) foster cooperative interactions among federal and industrial representatives for the common goal of sustained economic growth and energy security via energy conservation.

Abstract: “Sustainable Development” is now a widely accepted concept, yet there are surprisingly few concrete examples of it in practice. The pipeline industry operates at broad landscape and regional levels, and now has the opportunity to provide a strong lead in showcasing how society can benefit from major new energy pipelines while not significantly compromising natural and cultural values. To achieve this requires adoption of a fundamental proactive, ecosystem-based principle — the “Conservation First Principle”. In Canada this principle, first stated by Hummel [1], is that “there should be no new or expanded large-scale industrial development until a network of protected areas is reserved which adequately represents the natural region(s) affected by that development”. This approach is not new (e.g., the 1992 commitment by all levels of Canada’s governments to complete such protected areas networks), but it is more urgently needed now in an energy-rich frontier nation like Canada to truly safeguard our natural and cultural values while developing new energy corridors. It is a precautionary approach, akin to an insurance policy we would all be familiar with at a personal level. By identifying key natural habitats in each natural region (areas of similar bio-physical characteristics — there are 486 terrestrial natural regions in Canada), and using sophisticated GIS-based gap analysis, working with local communities, industry and governments, a network of protected areas can be identified and then reserved for legal protection. This network then adequately protects a representative sample of habitats, biodiversity and ecosystem processes in each natural region before or simultaneous with development proposals and approvals. The development of natural gas reserves in the Mackenzie Valley provides all stakeholders with a timely high-profile opportunity to showcase this balanced approach. The NWT’s Protected Areas Strategy provides the widely-supported community-led process to identify and then reserve key cultural and ecological areas in tandem with gas pipeline development. Investors, industry, governments, local communities and the general public all seek the greater certainty and security that such advance planning and balancing provides. The knowledge that certain key areas are off-limits to future development, and that other areas (the largest portion of each natural region) are assigned for sensitive industrial development, sets the stage for a more secure, stable future, in which all values are accommodated satisfactorily. In the push for greater energy security, the pipeline and oil and gas industry should now embrace the Conservation First Principle in energy developments across Canada’s lands and oceans, most immediately as it plans for a major gas pipeline in the Mackenzie Valley.Copyright © 2002 by ASME

Abstract: : The September 11, 2001, terrorist attacks did not directly threaten world oil supplies, but they exposed the long-term danger of relying on an energy source found chiefly in one of the world's most explosive regions. Oil dependency has major consequences for the U.S. and other major consumers. This paper examines the driving forces and trends that will affect the global supply of oil to 2020. It then identifies possible economic and geopolitical implications of oil dependency and offers suggestions for a U.S. energy security strategy. The paper finds that while oil will remain plentiful, globalization and growing world demand will make oil consumers increasingly vulnerable to disruption. At the same time, the risk of disruption from interstate conflict, resource competition, internal instability, and other factors will grow. Oil dependency is inescapable in the short-run, and the U.S. can only manage and minimize the risk of disruption by defending the supply of oil and by hedging against future interruptions. Over the long-term, however, the United States should seek to reduce oil dependency by increasing efficiency and developing energy alternatives.