Acknowledgments xi
1 An Introduction to Energy Finance and Economics 1
Betty J. Simkins and Russell E. Simkins
Part One An Overview of Energy Finance and Economics
2 Geopolitics and World Energy Markets 19
Robert W. Kolb
3 Energy Economics: Past, Present, and Prospects for the Future 49
James L. Williams and Betty J. Simkins
4 Sustainable Energy: Myths and Realities 79
Olamide O. Shadiya, Jane A. Talkington, John Mowen, Karen High, and Josh L. Wiener
5 A Brief Introduction to the Petroleum Industry: From Crude Oil and Natural Gas to Petrochemicals and Their Products 107
Russell E. Simkins and Kenneth A. Borokhovich
6 The Economics of Renewable Energy 129
Brad Carson
7 How Our Political Views Affect Our View of Energy Prices 145
Sheridan Titman
Part Two Financial and Economic Analysis in the Energy Industry
8 Oil and Gas Accounting 151
L. Charles Evans III
9 Financial Statement Analysis for Oil and Gas Companies and Competitive Benchmarking 181
Siamak Javadi, Betty J. Simkins, and Mary E. Wicker
10 Petroleum Economics, Risk and Opportunity Analysis: Some Practical Perspectives 229
David A. Wood
11 Real Options and Applications in the Energy Industry 253
Betty J. Simkins and Kris Kemper
12 International Petroleum Fiscal System Design and Analysis 269
David Johnston
13 Financing Large Energy Projects 313
Stephen V. Arbogast and Praveen Kumar
14 Financing Bio-Fuels Projects: Case Study Lessons 343
Stephen V. Arbogast
Part Three Energy Risk Management and Related Topics
15 Energy Derivatives and Markets 365
Craig Pirrong and Mohsen Mollagholamali
16 Introduction to Energy Risk Management 379
Ivilina Popova and Betty J. Simkins
17 Risks in Trading Energy Commodities 411
Divya Krishnan
18 Carbon Management and Environmental Issues 425
Evgenia Golubeva
19 Hedging and Value in the U.S. Airline Industry 443
David A. Carter, Daniel A. Rogers, and Betty J. Simkins
Part Four Case Studies
20 PKO Resources, Inc.: Valuing a Producing Oil and Gas Property 467
John D. Martin, J. Douglas Ramsey, and Sheridan Titman
21 Financial Analysis of the Purchase of a Hybrid Consumer Vehicle 477
Don M. Chance, Pratik Dhar, and Betty J. Simkins
22 ExxonMobil Corp.'s Acquisition of XTO Energy, Inc.: An Exercise in Valuation 491
Allissa A. Lee and Betty J. Simkins
23 Southwest Airlines: The Blended Winglet Project 513
Aaron Martin, Daniel A. Rogers, and Betty J. Simkins
24 Wind Energy Power Company, Inc. (A): Analyzing a Wind Energy Investment 525
John D. Martin, J. Douglas Ramsey, and Sheridan Titman
25 A Case Study on Risk Management: Lessons from the Collapse of Amaranth Advisors LLC 543
Ludwig Chincarini
Index 579