Energy

This image is having trouble loading!FSI researchers examine the role of energy sources from regulatory, economic and societal angles. The Program on Energy and Sustainable Development (PESD) investigates how the production and consumption of energy affect human welfare and environmental quality. Professors assess natural gas and coal markets, as well as the smart energy grid and how to create effective climate policy in an imperfect world. This includes how state-owned enterprises – like oil companies – affect energy markets around the world. Regulatory barriers are examined for understanding obstacles to lowering carbon in energy services. Realistic cap and trade policies in California are studied, as is the creation of a giant coal market in China.

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Mark H. Hayes
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Dirctor David Victor and Research Fellow Mark Hayes engaged with a team of researchers from the US, Germany, Brazil, and Argentina to discuss the development of Atlantic Basin gas markets. The seminar is expected to provide a foundation for a new study on the role of LNG imports for Brazil centered at the Federal University of Rio de Janeiro (UFRJ).

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The seminar is expected to provide a foundation for a new study examining the role of LNG imports for Brazilian natural gas markets centered at the Instituto Economia (IE) at the Federal University of Rio de Janeiro (UFRJ). Meeting attendees included experts from UFRJ, Brazilian state oil and gas company Petrobras, and experts on North American and European natural gas markets. The meeting discussed the operation of the key Atlantic Basin gas markets that will drive the development of future LNG trade, considering the potential role of Brazil in the future market for LNG.

Rio de Janeiro, Brazil

Encina Hall E419-B
Stanford University
Stanford, CA 94305-6055

(650) 724-1714 (650) 724-1717
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Mark H. Hayes was recently a Research Fellow with the Program on Energy and Sustainable Development (PESD). He lead PESD's research on global natural gas markets, including studies of the growing trade in liquefied natural gas (LNG) and the future for gas demand growth in China.

Dr. Hayes has developed models to analyze the impact of growing LNG imports on U.S. and European gas markets with special attention to seasonality and the opportunity for arbitrage using LNG ships and regasification capacity. From 2002 to 2005, Dr. Hayes managed the Geopolitics of Natural Gas Project, a study of critical political and financial factors affecting investment in cross-border gas trade projects. The study culminated in an edited book volume published by Cambridge University Press.

Prior to coming to Stanford, Mark worked as a financial analyst at Morgan Stanley in New York City. He was a member of the Global Power and Utilities Group, where he was involved in mergers and acquisitions, financing and corporate restructuring.

In 2006 he completed his Ph.D. in the Interdisciplinary Program on Environment and Resources at Stanford University. After completing his Ph.D. at Stanford, Mark has taken a position at RREEF Infrastructure Investments, San Francisco, CA. Mark also has a B.A. in Geology from Colgate University and an M.A. in International Policy Studies from Stanford. From 1999 to 2002 he served on the Board of Trustees of Colgate University.

Mark Hayes Speaker
Conferences
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An invigorating day of addresses, debate, and discussion of major sources of systemic and human risk facing the global community.

7:30 AMREGISTRATION
8:00 - 9:00 AMBREAKFAST AND WELCOME
John W. Etchemendy, Provost, Stanford University
Coit D. Blacker, Director, Freeman Spogli Institute

OPENING REMARKS
Warren Christopher, 63rd Secretary of State
William J. Perry, 19th Secretary of Defense
George P. Shultz, 60th Secretary of State
9:15 AM - 12:00 PMMORNING SESSION
PLENARY I
Understanding, Measuring, and Coping with Risk: What We Know Coit D. Blacker, Director, Freeman Spogli Institute, Chair
Understanding and Measuring Risk Elisabeth Paté-Cornell
The Collapse of the Nuclear Non-Proliferation Regime? Scott D. Sagan
Keeping Fissile Materials Out of Terrorist Hands Siegfried S. Hecker

CONCURRENT BREAKOUT SESSIONS
Food Security and the Environment Rosamond L. Naylor, Chair
Pandemics, Infectious Diseases, and Bioterrorism Alan M. Garber, Chair
Insurgencies, Failed States, and the Challenge of Governance Jeremy M. Weinstein, Chair
12:30 - 2:00 PMLUNCHEON
Infectious Diseases, Avian Influenza, and Bioterrorism: Risks to the Global Community
Michael T. Osterholm, Director, Center for Infectious Disease Research and Policy, University of Minnesota
2:30 - 5:30 PMAFTERNOON SESSION
PLENARY II
Natural, National, and International Disasters Michael A. McFaul, Deputy Director, FSI and Director, Center on Democracy, Development, and the Rule of Law, Chair
Terror, U.S. Ports, and Neglect of Critical Infrastructure Stephen E. Flynn
Energy Shocks to the Global System David G. Victor

CONCURRENT BREAKOUT SESSIONS
Responding to a World at Risk: U.S. Efforts at Democracy Promotion in Russia, Iraq, and Iran Michael A. McFaul, Chair
The European Union: Politics, Economics, Terrorism Amir Eshel, Chair
China's Rise: Implications for the World Economy and Energy Markets Thomas C. Heller, Chair
Cross Currents: Nationalism and Regionalism in Northeast Asia Daniel C. Sneider, Chair
6:00 - 8:00 PMCOCKTAIL RECEPTION AND DINNER
Cocktail Reception 6:00 - 7:00 PM
Dinner 7:00 - 8:00 PM
8:00 - 9:00 PMA WORLD AT RISK
Peter Bergen, CNN Terrorism Analyst
Author of Holy War, Inc.: Inside the Secret World of Bin Laden
Paul H. Nitze School of Advanced International Studies, Johns Hopkins University

Frances C. Arrillaga Alumni Center

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PESD director David G. Victor testifies to the Senate Committee on Energy and Natural Resources that the U.S.-India nuclear deal currently being debated by Congress could have a large impact on greenhouse gas emissions and be a major step towards engaging developing countries in the fight against climate change.

David Victor shows that by displacing coal-fired electricity generation, the U.S.-India nuclear deal could realize carbon dioxide emission reductions that rival the European Union's efforts under the Kyoto Protocol and far exceed previous efforts to engage developing countries in combating climate change.

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Forty students from nine universities across Russia came to Yaroslavl, 150 miles northeast of Moscow, to participate in an arms control exercise led by CISAC director Scott D. Sagan. In a mock U.N. Security Council session, students addressed Iran's nuclear program, to cap off courses they took this year through FSI's Initiative on Distance Learning, funded by Carnegie Corporation of New York.

One day perhaps Marina Agaltsova will join the diplomatic corps at a foreign embassy, or help write policy positions for the Russian government. Coit Blacker hopes that the lessons from her Stanford-sponsored distance-learning course will stick.

Agaltsova was among a group of Russian students brought to the provincial city of Yaroslavl in late May for an academic conference that capped this year's five distance-learning courses offered at nine universities across Russia by the Initiative on Distance Learning at the Freeman Spogli Institute for International Studies.

Through videotaped lectures, web readings and online chat sessions with senior research scholar Kathryn Stoner-Weiss and 14 other Stanford instructors, students in Democracy, Development and Rule of Law explored democratic ideals and practices, studying examples in Latin America, Asia and the former Soviet Union. "The course taught me that there is a black side to the reforms" that followed perestroika in Russia, Agaltsova says. "I learned more about Russian history [in the course] than I had learned in school."

That's the idea, says FSI director Blacker, who wants to re-establish the teaching of critical analysis, lost under decades of Communist rule, in Russian universities. "The social sciences were disemboweled," he says. He wants to develop future generations of diplomats and policy makers whose worldview is shaped "by how they think, not what they're told to think."

This year, to cap off the courses, 40 students came to Yaroslavl to participate in a mock United Nations Security Council session addressing Iran's nuclear program. They traveled from the farthest reaches of the Russian hinterlands, like Amur State University in Blagoveschensk, 4,800 miles from Moscow.

The arms control simulation is a teaching tool developed for the Stanford undergraduate class International Security in a Changing World, taught by Blacker and Scott Sagan, a political science professor and director of the Center for International Security and Cooperation within FSI. Sagan has exported the simulation to several universities in the United States where his former graduate students now teach--UC-Berkeley, Dartmouth, Columbia, Duke--but this was the first one he has conducted overseas.

This year's scenario was the International Atomic Energy Agency's referral of Iran to the U.N. Security Council for failure to fully disclose its nuclear activities. During the simulation, students submitted proposals to their heads of state, played by Blacker, Sagan and Russian faculty members. By the end of the two-day session, delegates had overcome seemingly intractable differences during four intensive sessions led by Stanford third-year law student Matthew Rojansky, acting as U.N. undersecretary-general for legal affairs. The council's resolution gave Iran three months to comply with the IAEA's requests and provided for Iran to obtain nuclear fuel from Russia, with the production and waste disposal to occur on Russian soil under IAEA controls.

After the session closed, students set aside their delegate roles to reflect on what they had learned. Narina Tadevosian, a student from Yakutsk State in far eastern Siberia, said she was surprised at "how strict Russia was" in taking a leading role in the session.

"If only it were so in real life," she added.

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A Chinese delegation is visiting Pyongyang to discuss the crisis set off by Kim Jong Il's missile launches. Whether it will exert any real pressure remains unclear. Pantech scholar Scott Snyder comments on the debate.

BEIJING - A message from President Bush to North Korean leader Kim Jong Il will be delivered Monday in Pyongyang -- via two Chinese officials. Beijing now meets quarterly with Mr. Kim, the most contact the unpredictable North has with any outside party. Whether Vice Foreign Minister Wu Dawei and Vice Premier Hui Liangyu will surprise Kim Jong Il and exert real pressure is unclear.

With an international diplomatic effort under way a week after North Korea tested seven missiles, China has proposed informal six-party talks as a way to move the process along.

That is less than the US hoped for from China. But since China insists that it will veto any UN sanctions against the North, the US will accept such talks, according to envoy Christopher Hill.

All told, Beijing would appear key to shaping how the world deals with the defiant Kim. Yet from the moment Kim launched his missiles, China has denied it has clout; it politely insists that the US has the central role.

Since 2003, China has embarked on a historic effort to prop up and aid North Korea -- a state it had the frostiest relations with for more a decade. Now, $2 billion in aid gives Beijing unprecedented access -- something China is reluctant to squander, to "mix aid and diplomacy," as a Chinese scholar here puts it.

"China's influence on North Korea is more than it is willing to admit, but far less than outsiders tend to believe," says a recent report by the Seoul branch of the International Crisis Group.

To outsiders, it appears that a rising China -- running a lifeline of energy and food to its poor comrade - ought to have clout in Korea, as it holds more carrots and sticks than anyone. It seems axiomatic that Beijing can simply apply ancient Chinese wisdom and modern Chinese might to stop Kim's nuclear ambition. Both states are communist, wear green and red uniforms, fought the US together, and share borders and history. China is the only country with easy access, as well as trade and tourism, to the North.

"China does have leverage, but it is afraid it may overplay its hand," says Joseph Cheng, head of the political science department at City University in Hong Kong.

Since Kim Jong Il's July 4 missile shots, voices from Sandy Berger, President Clinton's security adviser, to John Bolton, US ambassador to the UN, have argued that "China is the key" to dealing with North Korean belligerence. It has become nearly a mantra in Washington. Twelve months ago, it was an article of faith in senior White House circles, misplaced or not, that China would deliver a deal with Kim to dismantle his nuclear program. Yet this did not happen.

Instead, with the US preoccupied in Iraq, China embarked on a quiet policy of self-interest: to strengthen North Korea. That policy helps to maintain the North as a "buffer state" between China and South Korea.

China does not want the North to collapse, and for US troops to fill the vacuum and appear on its northeast border. China has hosted Kim, and moved relations away from a bad patch in the 1990s, during the North's epic famine, when China asked for cash payments for food instead of barter.

In the past two years, Chinese officials have told Kim that he can reform his state along socialist lines just as China did. China has indicated it will help with economic aid, while he retains complete political control. To now castigate Kim could wreck that formula, sources say.

In the larger sense, Kim's launch of missiles, most of which could hit long-time nemesis Japan or US bases in East Asia, puts China in the position of choosing between its North Korean comrade and an evolving consensus in the international community. So far, China has tried to please both sides.

"I'm concerned that China isn't recognizing how serious this issue is," says Zhang Liangui, head of foreign studies at the Central Party School in Beijing, in a rare dissent. "China is taking a rigid position. Yet we have long said that if China wants to be viewed as a responsible superpower, it must not be isolated in the international community."

Adding to Beijing's problems is an unresolved ideological struggle in China -- where "neo-orthodox" hard-liners who maintain contact with North Korea want China to support its revolutionary posture. There is also genuine puzzlement in Beijing over how to deal with Kim, whose founder-father, Kim Il Sung, reputedly warned him many times that China would attempt to take over his regime one day.

"I hear often that China is the key, which involves a set of policy steps Beijing can take that will bring about the outcome the allies want," says Russell Leigh Moses of People's University. "But I have yet to see anyone show how if China does X, Pyongyang will do Y."

The White House seems to have abandoned its 2003 optimism that China will harness Kim. China may agree that a nuclear peninsula and a regime that test-fires rockets is not desirable. But it isn't clear on how to force Kim to open his highly controlled state and allow international inspectors to flood in, witness his system of gulags, and bring in potentially subversive material -- all to dismantle a nuclear program he's cherished for decades. The White House seems to understand this.

Scott Snyder of Stanford University argues the US is using the same strategy that it used with China in closing down Kim's accounts in Macau. China was forced to choose between the international regulatory authority, or North Korean money-laundering behavior.

Sunday, Undersecretary of State Nicholas Burns argued on FOX News Sunday that "It's time for China to exert its influence that it does have on North Korea." Also on Sunday programs, US and Japanese officials claimed they might have the votes to support a Japan-backed resolution for sanctions against the North.

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Michael Wara shows while inducing significant participation by developing countries, the Clean Development Mechanism has failed to realize its full environmental potential. Reductions are much smaller than claimed, politicization is prominent, and the scheme has done little to encourage the profound changes in energy technology needed to address climate change.

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Cosponsored by the Woods Institute for the Environment and the Abbasi Program in Islamic Studies

Daniel Cohn-Bendit was born in France and spent his childhood in Paris. He moved to Germany in 1958 but later returned to France to study sociology at the University of Nanterre. It was here in 1968 that he first became known as a spokesperson and student leader during the May Revolution in Paris. He was subsequently expelled from France and he settled in Frankfurt where he was an active member of the Sponti scene which exercised a social revolution in the 1970s. Growing from this scene was the alternative urban magazine "Pflasterstrand", of which Cohn-Bendit served as the editor and publisher. It was here that he began taking part in eco-struggles against nuclear energy and the expansion of the Frankfurt airport. The Sponti movement officially accepted parliamentary democracy in 1984 and Cohn-Bendit joined the German Green Party. In 1989, he became deputy mayor of Frankfurt, in charge of multicultural affairs. Since January of 2002, he has served as co-president of the Greens/Free European Alliance Group in the European Parliament. He is a member of the Committee on Economic and Monetary Affairs and a member of the Committee on Constitutional Affairs. In addition to his political activities, Cohn-Bendit was the host of the "Literaturclub" show for Swiss TV station DRS for 10 years, and he is an author of several books including the most recent, Quand tu seras président, written with Bernard Kouchner and published in April 2004.

http://www.cohn-bendit.com/

Bechtel Conference Center

Daniel Cohn-Bendit Co-president Speaker the Greens/Free European Alliance Group, European Parliament
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Mark H. Hayes
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The anticipated title from Cambridge University Press has been released in hard-cover and is available for purchase. Edited by PESD director, David Victor, Rice professor Amy Jaffe, and PESD fellow Mark Hayes, the book sheds light on the political challenges which may accompany a shift to a natural gas-fed world.

Energy is on the front burner and will stay there, so this book has special value. Read it and learn about the topic of today and tomorrow and tomorrow.

- George P. Shultz, United States Secretary of State, 1982-1989

The coming phase of energy industry development is bringing with it the rapid globalisation of the gas business. Long term take-or-pay contracts, which align supply and demand and which formed the foundation of all successful projects in the past, are coming under pressure from liberalisation. But security of supply still depends on security of demand: this timely and authoritative study demonstrates that, if gas is to

fulfil its enormous promise as an energy source, new ways must be found to establish the confidence of both sides that secure supply will be matched by reliable demand

- Frank Chapman, CEO, BG Group plc

This is a very valuable addition to the global literature on energy issues and energy policy ... Natural Gas and Geopolitics goes deep into the global gas policy issues that affect critical US energy policy, not only looking backward but helping understand what may happen as the global natural gas market develops.

- Bill Richardson, Governor of New Mexico, United States Secretary of Energy, 1998 2001

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