Innovation Dynamics and Policy in the Energy Sector : Building Global Energy Markets, Institutions, Public Policy, Technology and Culture on the Texan Innovation Example

Innovation Dynamics and Policy in the Energy Sector discusses the process and future of global innovation in the energy sector based on the innovation leadership example of Texas. The book proposes that the positive dynamics of Texas energy sector innovations arises from a confluence of factors, including supportive institutions, the management of technological change, competitive markets, astute public policy, intraindustrial collaboration, a cultural focus on change and risk-taking, and natural resource abundance. Heavily case-study focused chapters review the fundamental drivers of innovation, from key discoveries at Spindletop; the proliferation of oil production through major field development; through electric sector deregulation; and recent innovation in hydraulic fracking, renewable integration, and carbon capture. The work closes to argue that sustainable global innovation addressing the twin challenges of climate change and the energy transition must be driven by the promotion of competition and risk-taking which continually promotes the development of ideas, a process jointly funded by the public and private sectors and supported by collaborative and competitive institutions. Reviews the fundamental drivers of energy innovation and examines each driver through 10 key episodes in the Texas energy innovation experience, inclusive of guidance to the international research community based on their example. Establishes the critical impact of constructive energy policy, energy technology, and power markets in cultural settings that invite change and risk-taking and proposes them as key factors in building sustainable innovation. Consolidates current research and practice related to innovation from the perspectives of established (economics and engineering) and emergent (innovation economics and econometrics) disciplines. Title-page_2021_Innovation-Dynamics-and-Policy-in-the-Energy-Sector Innovation Dynamics and Policy in the Energy Sector Copyright_2021_Innovation-Dynamics-and-Policy-in-the-Energy-Sector Copyright Contents_2021_Innovation-Dynamics-and-Policy-in-the-Energy-Sector Contents List-of-figures_2021_Innovation-Dynamics-and-Policy-in-the-Energy-Sector List of figures List-of-tables_2021_Innovation-Dynamics-and-Policy-in-the-Energy-Sector List of tables About-the-author_2021_Innovation-Dynamics-and-Policy-in-the-Energy-Sector About the author Preface_2021_Innovation-Dynamics-and-Policy-in-the-Energy-Sector Preface Addendum_2021_Innovation-Dynamics-and-Policy-in-the-Energy-Sector Addendum Introduction The Polar Vortex and Arctic cold air outbreaks of February 2021 Key grid events and ERCOT responses as the Big Freeze unfolded and subsided Economic and human misery impacts of the Big Freeze The ERCOT market structure essentials Current ideas for reforming the Texas electric grid in response to the Big Freeze Where do we go from here? The key drivers of innovation Texas new innovation direction projections resulting from the Big Freeze Chapter-1---The-dynamics-of-innovation-and_2021_Innovation-Dynamics-and-Poli 1 The dynamics of innovation and technology in a market economy Introduction Innovation defined The rate of growth of technological change The dependence of economic growth on technological change Human capital and economic growth Treatment of time in economics and the law Property rights and innovation Government’s ability to advance innovation Economic models of innovation in the energy sector Overview of the Texas energy sector innovation experience Worked example Chapter-2---The-common-international-en_2021_Innovation-Dynamics-and-Policy- 2 The common international energy innovation drivers Energy-intensive economies: Texas and US ranking among leading countries The international energy and associated organizations: vehicles for innovation OPEC International Association for Energy Economics World Coal Association World Petroleum Council International Renewable Energy Agency (IRENA) Global Wind Energy Council International Solar Energy Society International Atomic Energy Agency (IAEA) Other international organizations Current status of the global economy in the sixth Kondratieff cycle Governmental structure influence on energy sector innovation Capitalism Communism Socialism Measuring the common factors for driving change Global Competitiveness Index Global Innovation Index Fundamentals of resource ownership Concessions and their role in international energy markets US companies with strong ties to Texas: spreading innovation throughout the globe Avangrid Chevron Corporation CMS Energy ExxonMobil First Solar Halliburton Company Hess Corporation Marathon Petroleum Corporation Occidental Petroleum Corporation (Oxy) Phillips 66 Schlumberger Sempra Energy Chapter-3---A-game-change-at-Sp_2021_Innovation-Dynamics-and-Policy-in-the-E 3 A game change at Spindletop The event The Spindletop innovations Technological innovations Business model innovation Institutional innovation The early interplay of policy, markets, and technology Impacts of the Spindletop innovations Chapter-4---From-chaos-to-order-in-th_2021_Innovation-Dynamics-and-Policy-in 4 From chaos to order in the East Texas Field The event The East Texas Field induced innovations The interplay of policy, markets, and technology Impacts of the East Texas innovations Chapter-5---Concessions-abroad-and-the-d_2021_Innovation-Dynamics-and-Policy 5 Concessions abroad and the disciplined rule of capture The event Innovation US stile and the follow up by OPEC The interplay of policy, markets, and technology Impacts of the institutional innovations Chapter-6---West-Texas-and-the-Permian-_2021_Innovation-Dynamics-and-Policy- 6 West Texas and the Permian Basin early innovations The event The Permian Basin innovations The interplay of policy, markets, and technology Impacts of the Permian Basin innovations Chapter-7---Panhandle-Field-and-nat_2021_Innovation-Dynamics-and-Policy-in-t 7 Panhandle Field and natural gas flaring The largest natural gas discovery in the United States Interstate pipelines The complexity of natural gas regulation Natural gas flaring Natural gas proration and ratable take Industrial marketing programs and deregulation The innovations in the Texas natural gas markets The interplay of policy, markets, and technology Impacts of the natural gas market and institutional innovations Chapter-8---Upheaval-in-the-energy-markets--t_2021_Innovation-Dynamics-and-P 8 Upheaval in the energy markets: the Arab Oil Embargo and the Iranian Crisis What happened The federal response The Texas response Interplay of policy, technology and markets following the energy crisis Measuring the impacts of entities created GEAC (1973 commission) input GEAC (1973 commission) output GEAC (1975 Texas state agency) input GEAC (1975 Texas state agency) output GEAC (1975 Texas state agency) impact Texas Energy Advisory Council (TEAC, 1977 Texas state agency) input Texas Energy Advisory Council (TEAC, 1977 Texas state agency) output Texas Energy Advisory Council (TEAC, 1977 Texas state agency) impact TENRAC (1979 Texas State Agency) input TENRAC (1979 Texas State Agency) output TENRAC impacts Chapter-9---Electric-industry-deregulati_2021_Innovation-Dynamics-and-Policy 9 Electric industry deregulation and competitive markets The context Texas restructuring The Texas market structure and operations Performance Reliability Prices Retail service and consumer satisfaction The role of the market monitor regarding market power The role of new technology and institutional changes The interplay of policy, markets, and technology Impacts of the restructured electric market innovations Chapter-10---Hydraulic-fracturing--the-permian-bas_2021_Innovation-Dynamics- 10 Hydraulic fracturing: the permian basin challenges organization of petroleum exporting countries leadership The beginning Natural gas from shale Crude oil from shale and tight sands Interplay of policy, technology, and markets Impacts of the fracking innovations Chapter-11---The-oil-and-gas-state-adds_2021_Innovation-Dynamics-and-Policy- 11 The oil and gas state adds renewable wind and solar Renewable energy definition Wind energy electric generation Solar energy Transmission capacity Reliability Interplay of policy, technology, and markets Impacts of renewables innovation Chapter-12---Capture-and-global-warming--th_2021_Innovation-Dynamics-and-Pol 12 Capture and global warming: the technology and regulation debate Global warming and CO2 emissions Interplay of policy, technology, and markets Markets Policy Direct regulation of CO2 emissions from power plants Technology Hope around short-term impacts Concerns about long-term impacts Chapter-13---The-road-ahead--ide_2021_Innovation-Dynamics-and-Policy-in-the- 13 The road ahead: ideas are key From then until now What comes next The future dynamics of policy, technology, and markets A recommendation Appendix-A---The-principle-components-_2021_Innovation-Dynamics-and-Policy-i Appendix A The principle components of the energy system Appendix-B---Overview-of-energy-market-and-re_2021_Innovation-Dynamics-and-P Appendix B Overview of energy market and regulatory structures and US influence abroad Government agency regulatory system in the United States State government agency regulatory systems Texas United Kingdom UK regulatory authorities Germany Federal Network Agency Federal Maritime and Hydrographic Agency The Paris climate agreement—Germany support Russia Venezuela Saudi Arabia Appendix-C---Recent-developments-in-ener_2021_Innovation-Dynamics-and-Policy Appendix C Recent developments in energy technology and markets Definitions_2021_Innovation-Dynamics-and-Policy-in-the-Energy-Sector Definitions References_2021_Innovation-Dynamics-and-Policy-in-the-Energy-Sector References Index_2021_Innovation-Dynamics-and-Policy-in-the-Energy-Sector Index Innovation Dynamics And Policy In The Energy Sector: Building Global Energy Markets, Institutions, Public Policy, Technology And Culture On The Texan Innovation Example Reviews The Dynamics Of The Texas Energy Sector, Including Discussions On Technological Change, Competitive Markets, Astute Public Policy, Collaborative Institutions, A Culture That Invites Change And Risk-taking, And Natural Resource Abundance. The Book Documents Numerous Case Studies Driven By Innovation In Policy, Markets, Technology And Institutions, Including Spindletop, East Texas Field, Disciplined Rule Of Capture, Permian Basin, Natural Gas Flaring, The Arab Oil Embargo, Electric Sector Deregulation, And More. The Book Argues That Sustainable Global Innovation That Addresses The Twin Challenges Of Climate Change And Energy Transition Must Be Driven By The Promotion Of Competition And Risk-taking Which Continually Promotes The Development Of Ideas, A Process Jointly Funded By Both Public And Private Sectors. Describes Fundamental Drivers Of Innovation Examines Each Driver Through Ten Key Episodes In The Texas Energy Innovation Experience Establishes Policy, Technology And Markets In Cultural Settings That Invite Change And Risk-taking As Key Factors In Building Sustainable Innovation Consolidates Current Research And Practice Relating To Innovation From The Perspectives Of Established (economics, Engineering) And Emergent (innovation Economics, Econometrics) Disciplines