[MUSIC] Welcome to Week 2 of Fundamentals of Global Energy Business. This week we're going to discuss supplies of energy. You recall from week one that the energy we demand depends on the work we can do with it. And oftentimes, the goods and services that we consume can be supplied by a variety of different primary sources of energy. So, for example, recall our our friend here in the illustration that we used to understand demand for energy. Here he was utilizing hydro-power to do mechanical work in order to build some tools. Well, you may have picked up in last weeks lectures that he could also use that hydro-power to a different kind of work. He could do mechanical work to run say a turbine. And that turbine could generate electricity and instead of producing mechanical work to produce goods. He might utilize that electricity to do thermal work to provide illumination. Well the converse of that is that you could think of utilizing other power sources. Other primary energy sources, I should say, to generate that same kind of work. You could utilize, for instance, coal through a coal-fired power plant to generate electricity to provide the same illumination. So what we're going to do is begin by discussing the various types of primary energy resources available to us. We'll then discuss how we make use of these primary resources. How do these primary resources flow from the forms that we find in nature to the types of energy that we find useful as end consumers. We'll then discuss the geography of primary energy resources where around the globe are these resources found? But, just because these primary resources are available in a particular location doesn't mean they'll necessarily be brought to the marketplace. So we're also going to discuss determinants of energy supply. Why are particular resources brought to the marketplace in some locations, and not brought to the marketplace in others. With the determinants of supply in hand, we're then in a position, bringing back last week's conversation, to discuss the equilibrium of supply and demand. So how exactly do consumers primary energy resources engage with producers in the marketplace. And which results in the actual consumption that we observe. And finally and importantly, what we'll, what we'll realize is that the abstract models that we, we may find useful to describe supply and demand don't really fully describe energy markets. And that's because there are a number of economic imperfections that result in a good deal of political activity having an influence on en-, energy markets. So, for instance, much of energy consumption and production has perhaps some non-trivial implications for public health and safety. And so what this means is that a number of political actors may may attempt to influence the potential allocations. That we might observe as supply and demand come together in primary energy markets. So we'll spend a good amount of time discussing. The implications of those factors those political factors for supply and ultimate market clearing in primary energy. [MUSIC] [BLANK_AUDIO]
