A stronger, more informed approach to the energy markets

The Energy World Is Flat provides a forward-looking analysis of the energy markets and addresses the implications of their rapid transformation. Written by acknowledged expert Daniel Lacalle, who is actively engaged with energy portfolios in the financial space, this book is grounded in experience with the world of high-stakes finance, and relays a realist's perspective of the current and future state of the energy markets. Readers will be brought up to date on the latest developments in the area, and learn the strategies that allow investors to profit from these developments. An examination of the markets' history draws parallels between past and current shifts, and a discussion of technological advancements helps readers understand the issues driving 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. Its centrality to the world of finance makes it imperative for investors and analysts to understand the energy markets, irrespective of where on the wide range of energy spectrum observers they fall. The Energy World Is Flat is a guide to the past, present, and future of these crucial markets, and the strategies that make them profitable. These include:

• Understanding the state of the energy markets, including key developments and changes
• Discovering the ten pillars of a successful energy investment strategy
• Reviewing the history of the energy markets to put recent changes into perspective
• Learning which technologies are driving the changes, and how it will affect investors

The recent energy market changes were both unexpected and so fundamental in nature that they represent a true shift in the energy macro- and microeconomic landscape. Investors and analysts seeking a stronger approach to these markets need the expert guidance provided by The Energy World Is Flat.

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A FORWARD-LOOKING APPROACH TO THE GLOBAL ENERGY MARKETS

"... and the last barrel of oil will not be worth millions, it will be worthless..."
—From Chapter Five

The Energy World Is Flat offers both professional and private investors an enlightened guide and insightful analysis to the international energy markets and addresses the profound implications of their rapid and ongoing transformation. Written by Daniel Lacalle and Diego Parrilla (investment experts in the field of global energy) this important resource contains a perspective of the current and future state of the energy markets not found in other books. The authors explore the latest developments in the world of energy and include the strategies and information needed to profit from these advances.

No matter where an investor stands on the political and philosophical issues surrounding the energy market, it is widely acknowledged that energy is the driving force of the world's economic agenda. The Energy World is Flat is a savvy investors strategic guide to the past, present, and future of these critical markets and reveals a positive investment approach.

"A tremendously valuable analysis of the energy markets that will both inform and delight the student, the seasoned industry professional, as well as the senior policy maker."
—Helima Croft, Global Head of Commodity Strategy, RBC and former National Intelligence Fellow at the Council on Foreign Relations

"This is a fascinating analysis of the main issues in the energy world. I would recommend it as a reference book for casual readers, energy experts, politicians as well as top managers of energy companies. This book should be very valuable as it is both thorough and easy to read"
—Juan Ramón Fernandez-Arribas, Energy Analyst and Consultant

"This book offers a consistent and thorough analysis of the complex global energy landscape, presenting the many political, economic and technological challenges of the energy sector in a clear, concise and bold way"
—Ignacio Sanchez Galan, Chairman of Iberdrola

"In his usual clear, direct and reader friendly style, Daniel Lacalle offers a precise and impartial analysis of the complex energy market. A must-read for anyone looking for a global vision of the energy world"
—Antonio Llarden, Chairman of Enagas and previously Sedigas

"A hugely interesting book in which the authors analyze the different variables in the energy world, questioning some of the established myths. The book is entertaining and informative"
—Miguel Martinez, CFO of Repsol

Chapter 1 The Mother of All Battles. The Flattening and Globalization of the Energy World 1 Chapter 2 Lessons from the Internet Revolution and the Dotcom Bubble 11 Chapter 3 The 10 Forces that are Flattening the Energy World 31 Chapter 4 Flattener #1 – Geopolitics: The Two Sides of the Energy Security Coin 35 Chapter 5 Flattener #2 – The Energy Reserves and Resources Glut 53 Sorry, No Peak Oil 64 No Peak Gas Either 76 Chapter 6 Flattener #3 – Horizontal Drilling and Fracking 85 Chapter 7 Flattener #4 – The Energy Broadband 103 Chapter 8 Flattener #5 – Overcapacity 117 Chapter 9 Flattener #6 – Globalization, Industrialization, and Urbanization 123 Chapter 10 Flattener #7 – Demand Destruction 131 Chapter 11 Flattener #8 – Demand Displacement 135 The Battle for Transportation Demand 135 The Battle for Electricity and Industrial Demand 148 The Energy Domino 151 Chapter 12 Flattener #9 – Regulation and Government Intervention 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, and Macroeconomic 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 Financial Markets 245 Concluding Remarks 275 Appendix For A Competitive European Energy Policy 279 Index 289