Fall 2014
5371 International Petroleum Transactions - WEAVER- 17157

Professor(s): Jacqueline Weaver (FACULTY)

Credits: 3

Course Areas: Energy, Natural Resources and Environmental Law 
International Law

Time: 2:30p-4:00p  MWLocation: 144  BLB

Course Outline: International Petroleum Transactions provides an overview of the laws, contracts, and legal issues that arise between host governments and oil companies that seek to invest in and develop oil and gas owned by the host governments. The course includes: an overview of National Oil Companies (the largest reserve owners today), ascertaining title to the minerals, especially in federalist countries or countries with indigenous tribes; resolving boundary disputes between nations; a comparison of the most commonly used granting contracts (licenses, production-sharing contracts and service contracts); issues arising under the international Joint Operating Agreement; sustainable development in resource development, including social impact assessment, human rights issues and litigation, and liability for transboundary pollution and oil spills; anti-corruption laws and codes; international arbitration; and other issues as time permits. The course also provides a good background to the future of the western majors in the global context of international energy. The class will have several guest lecturers who are leading practitioners in specialized areas of international petroleum transactions, such as arbitration and the Foreign Corrupt Practices Act.

Course Syllabus: Syllabus updated 8/4/14

Course Notes:   

Prerequisites:  It is interesting to contrast international contracts with the private oil and gas lease system studied in Oil and Gas Law (which is largely Texas oil and gas law, including Texas regulation of oil and gas). But Oil and Gas Law is not a prerequisite and the system of private ownership is quite different from the international world.

First Day Assignments: Pick up a (free) copy of the IPT Supplement from Amanda Parker in Faculty Office Suite Teaching Unit 2, first floor.

First week-- The Future of the Energy Industry in Eventful Times and under Global Warming.
Scan the 2014 ExxonMobil Energy Outlook to 2040 available at http://www.exxonmobil.com/Corporate/files/news_pub_eo.pdf. Look at the graphics and data on energy supply and demand projections, especially oil and gas. Be prepared to discuss in class the major trends projected in energy supply and demand. Today, the world is about 80% dependent on fossil fuels (oil, gas and coal) for its energy needs. What is the forecasted percentage in 2040? What fuels are growing the fastest? Oil? Renewables? Where is most of the future energy demand arising? What transportation sector is driving the demand for gasoline and diesel? What does the Outlook say about carbon dioxide emissions and a "carbon tax"? What does it say about capturing carbon dioxide and storing it underground to prevent global warming? How does the Outlook address the issue of global climate change?
IPT SUPP. ITEM 1: Future of the Petroleum Industry (10 pp). Short article by Prof. Weaver abstracted from her chapter on the “The Future of the Petroleum Industry under Global Warming.”
IPT SUPP. ITEM 2. Excerpts from Shell Energy Scenarios to 2050, Scrambles v. Blueprints (20 pp). You can access the entire report here if you want to see its colorful graphics: http://s00.static-shell.com/content/dam/shell/static/future-energy/downloads/shell-scenarios/shell-energy-scenarios2050.pdf. Or just put the title of the report "Shell Energy Scenarios to 2050" in your browser, and you should be able to call it up easily.
IPT SUPP. ITEM 3: Graphics of int’l petroleum markets and industry.

Casebook, Smith, Dzienkowski et al:
Read Ch. 1. World Energy Resources. Much of this chapter is self-explanatory, and will not be covered in class discussion.
CB Ch. 3 pp 191-201. Federations: Russia and Mexico present contrasting models.

The class syllabus is the first item in your IPT Supplement and is also posted on the Fall class schedule link to this course.

Final Exam Schedule: 12/08/14 1pm-4pm      

This course will have:
Exam:
Paper:

Satisfies Skills Course Requirement: No
Satisfies Senior Upper Level Writing Requirement: No

Course Materials (6/13/2014 1:53:10 PM)

Book Required

Course Materials: "IPT SUPP" will be available from Amanda in TU2-114.