A stronger, more informed approach to the energy markets
The Energy World Is Flat provides a forward-lookinganalysis of the energy markets and addresses the implications oftheir rapid transformation. Written by acknowledged expert DanielLacalle, who is actively engaged with energy portfolios in thefinancial space, this book is grounded in experience with the worldof high-stakes finance, and relays a realist's perspective of thecurrent and future state of the energy markets. Readers will bebrought up to date on the latest developments in the area, andlearn the strategies that allow investors to profit from thesedevelopments. An examination of the markets' history drawsparallels between past and current shifts, and a discussion oftechnological advancements helps readers understand the issuesdriving these changes.
Energy has always been at the forefront of the economic agenda,being both the key to and a driver for development and growth. Itscentrality to the world of finance makes it imperative forinvestors and analysts to understand the energy markets,irrespective of where on the wide range of energy spectrumobservers they fall. The Energy World Is Flat is a guide tothe past, present, and future of these crucial markets, and thestrategies that make them profitable. These include: * Understanding the state of the energy markets, including keydevelopments and changes * Discovering the ten pillars of a successful energy investmentstrategy * Reviewing the history of the energy markets to put recentchanges into perspective * Learning which technologies are driving the changes, and how itwill affect investors
The recent energy market changes were both unexpected and sofundamental in nature that they represent a true shift in theenergy macro- and microeconomic landscape. Investors and analystsseeking a stronger approach to these markets need the expertguidance provided by The Energy World Is Flat.
Chapter 1 The Mother of All Battles. The Flattening andGlobalization of the Energy World 1
Chapter 2 Lessons from the Internet Revolution and the DotcomBubble 11
Chapter 3 The 10 Forces that are Flattening the Energy World31
Chapter 4 Flattener #1 Geopolitics: The Two Sides ofthe Energy Security Coin 35
Chapter 5 Flattener #2 The Energy Reserves andResources Glut 53
Sorry, No Peak Oil 64
No Peak Gas Either 76
Chapter 6 Flattener #3 Horizontal Drilling andFracking 85
Chapter 7 Flattener #4 The Energy Broadband103
Chapter 8 Flattener #5 Overcapacity 117
Chapter 9 Flattener #6 Globalization,Industrialization, and Urbanization 123
Chapter 10 Flattener #7 Demand Destruction131
Chapter 11 Flattener #8 Demand Displacement135
The Battle for Transportation Demand 135
The Battle for Electricity and Industrial Demand 148
The Energy Domino 151
Chapter 12 Flattener #9 Regulation and GovernmentIntervention 159
Regulation vs. Free Markets 160
The War on Pollution and Coal 165
Renewable Energy and the Disinflation of Power Prices 172
Biofuels and Food Inflation 193
Chapter 13 Flattener #10 Fiscal, Monetary, andMacroeconomic Flatteners 207
The Btu that Broke OPEC s Back 209
The Oil Tax Weapon 214
Monetary Experiments and the Credit Risk Time Bomb 220
Financial Flows. Let s Blame the Speculators 232
Chapter 14 Implications and Opportunities in the FinancialMarkets 245
Concluding Remarks 275
Appendix For A Competitive European Energy Policy 279
Index 289