Message-ID: <28045951.1075846394398.JavaMail.evans@thyme> Date: Sun, 14 Nov 1999 08:24:00 -0800 (PST) From: terence.thorn@enron.com Subject: Lay WTO Speech Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Terence H Thorn X-To: Steven J Kean@EES X-cc: X-bcc: X-Folder: \Steven_Kean_Dec2000_1\Notes Folders\Wto X-Origin: KEAN-S X-FileName: skean.nsf Moving along and on schedule. I wll be speaking myself twice and be at the Seattle meeting for about four days negotiating on the side. ---------------------- Forwarded by Terence H Thorn/ENRON_DEVELOPMENT on 11/14/99 04:23 PM --------------------------- Terence H Thorn 11/14/99 04:21 PM To: Rob Bradley@ENRON, Joe Hillings@ENRON, Chris Long@ENRON, Edith Terry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Subject: Lay WTO Speech Rob has provided everyone a new set of slides for Ken's speech. They want Ken to speak for 20 minutes. Once we agree on these we have to put together talking points for Ken to use. I would like to be at that point this Wednesday so we have the rest of the week to get feed back fro Ken and finalize the speech next Monday or Tuesday. Let me try out some themes. We need to put energy developments in the context of globalization. The world's economy is integrating as never before as transborder trade increases, capital becomes more mobile. technology speeds this process. To compete in this new arena countries must have access to the most talented labor, the most advanced technology, and the lowest cost, highest quality suppliers of goods and services. No where is this more critical that in the areas of energy production, transportation, distribution and use. Historically, energy trade has focused on technology to explore, produce and export energy. In the 1990's the focus shifted to using that energy internally to fuel the tremendous economic growth experienced by developing economies. The focus became infrastructure development and inter-regional trade as governments removed the legal and regulatory barriers to private energy and infrastructure development. With energy demand increasing at high rates, the potential for price increases, the need to develop and use new energy technologies and the related environmental problems associated with economic development, the next focus must be on opening these same economies to the world class suppliers and partners which have the intellectual property, talent, networks and technology to provide the answers to the more efficient production, transportation and use of energy. By opening their economies to an expanded trade in energy services, these countries gain instant access to the skills and capabilities that have taken decades to develop elsewhere. But it's not just governments that benefit. In the US and Europe today we have seen an explosion of customer choice in their providers of products, services, prices and terms. The service industries have led the way in providing more value at better prices. This will help economies leverage their own financial, technological and intellectual capabilities. Having put the need to have energy services on the WTO agenda I would now turn the problem of defining the energy services sector. I don't like the third chart, Energy Services Overview - it's confusing. I don't know if you are listing the companies involved in services, in the coalition or what. I far prefer the type of chart Rachel Thompson uses in her environmental services presentation on page three: Some examples of environmental goods and services. We can briefly talk about the historic issues here, but also forward our recommendations on how energy services should be considered in the WTO GATS discussions. The inclusion in the next GATS round is not an end in itself but will start a process that will: Clarify the definition of energy services Identify the barriers to trade in energy services Set the goals for the desired level of market openess Establish commitments on transparency, due process and regulatory implementation From here we do a summary of global trends, the important role energy services will play in a globalized economy, how expanded trade in energy services can be a direct channel for technology transfer. This is the "win-win" section. In turning to the slides Rob provided, I have already mentioned my concerns about the second slide. The list of members of the coalition can stay- it represents the depth and variety of businesses in this area. The energy and infrastructure slides fit the initial story. The energy services megatrend slide has a long way to go. Maybe we can show the trend: production and export, private infrastructure development, and the next step: mass customization. The privatization slide doesn't go here but I'm not sure what the point is or how we want to tie privatization to energy services. The globalization slides need to go earlier if we are to use the story I outlined but the globalization of energy trade slide is about the trade in commodities. It doesn't fit- we are after data on the goods and services that make this trade happen, not the commodity per se. The customization is fine- we need to have solid talking points about why customization of energy services helps economies. This will be a tough section- I don't think we have anything in the can exactly on this point. Do we need new markets for competitive energy? Energy outsourcing and information age are fine, I like the nexus between energy and environment. The talking points here should focus on this part of the energy services business. EES should have lots of talking points in this area. The benefits slide can be expanded. I don't see the need for the fragmentation slide. Point? On the conclusions don't be so threatening. Rather than say must adapt, we should be talking about the benefits of embracing the new energy market. Add a point about rising demand, environment problems, the need to produce and use energy more efficiently. .