 Assalamu alaikum. My name is Ismat Shah. I'm a professor of material science and engineering and physics and astronomy at the University of Delaware. So I'm going to be teaching this course in energy economics and you would wonder why would a person who has a background of physics and material science be teaching economics course and it is a very legitimate question. The only thing is that while I was a professor of physics and astronomy and material science and engineering, I also directed a program at the University of Delaware which is related to energy and environmental policy. So as you can imagine that all the things that are necessary for policy, the knowledge of economics is very important for that. After that, I learned economics for six years and the result is that I am standing in front of you and recording a course on energy economics. So first, there are some introductory slides. There are a few slides that are a little bit a bit too much but don't worry about that. I'm just going to very quickly go over the main content of the material so that you know what is coming up and then we will go into the real material of the course a little later. So let's start with the section one. Section one basically introduces the energy fundamentals. Not just that which energy is available, renewable, non-renewable, all the things are described. In fact, apart from this, what is energy? We don't have any idea what energy is for the name but what is its physical concept? There is a spiritual concept and a metaphysical concept but we will restrict ourselves to physical content of energy. So we will talk about what is energy. Then if you talk about energy, you will have to understand the units of it. So I will describe in detail all the units of energy, power and everything, force and whatever else that is related to that. Apart from that, then we will also talk a little bit about the economic fundamentals. Like this Kuznet curve. The interesting thing about Kuznet curve is that it was used for something else, equality or GDP per person, but now it is used in environmental issues as well. Yes, let me tell you that energy is only necessary to understand what the effect of energy is. Not just on society but on all the environments. So we will talk a lot about the environmental effect of the energy. So we will talk about that. I have also mentioned here, Canadian economics. It is a very interesting idea that you quickly become rich and the rich people do not need to fight them. So it is better that everyone becomes rich. So you will only get to know the basic understanding of how much there is in it. So we will talk more about that. We will talk a little bit more details into that. Then we will get into the nitty-gritty of what kinds of energy, what kind of fuels, right? We talk about fossil fuels. The biggest problem these days is that we are using fossil fuels with so much effort. And due to its use, we will see what is the problem of the environmental problem. But where are the fossil fuels? The fossil fuels have not come from above, right? The fossil fuels are made in the ground. So we will look into how the fossil fuels are made. Coal and oil have different origins. Oil and gas have one origin and coal has a different origin. So we will talk about the origins of both. What are the origins of the three? And then the history of where it started and where it is at this time. And how much coal and oil are saved. That is a very important thing to understand in economics. So we will talk a little bit about that. And apart from that, the prices of these things, oil prices, you know that if you live in Pakistan, you will be sure that it keeps rising and coming down. And all the reasons for that are externalities. Political externalities, weather externalities, right? Sometimes it happens that if the storm comes, then the refinery will be closed, then the price of gas will be more. If it is not here, then it is outside. And some reasons for political externalities, that import has been reduced from outside, then the price will be more. So we will understand all of those externalities where the oil prices are very much dependent. Coal is not so sensitive, but it is still sensitive. Now if you imagine that the coal in Balochistan was half the price five years ago, now its price has become low. So why is it low? So it is necessary to understand what are the factors that relate to the price. Then there is a small section on electricity. Although electricity itself is an energy source, but it is not a primary energy source. Primary energy source is oil, gas and coal. But it is necessary to understand that because for our life, there is nothing more than electricity. Transportation and electricity are two things that affect the life of a common man. Industry also affects it, but in day-to-day life, when we need electricity, then we will have to see how the price control is in Pakistan or outside. And then there is supply and demand economics, for all these things. How much did it come in the market? It was your supply and how many people bought it, it was your demand. What is the use of all these things? Transportation is the biggest thing, but there is no major use of 30-40% fuel, it is used in transportation. Oil is used in transportation for 80% of the time. So you have to see how it is used. So you have to understand the internal combustion engine. So for that, there are some principles of physics that can be understood very easily. There is no need to worry about it. There are thermodynamics principles. If you understand them, then life will be very easy. Not just for this, but for other things too. So I will try to explain it in an easy way. So we will read it in a good way. The internal combustion engine is not a wide engine. There is also an external combustion engine. Like the old engines of the rail cars, they are external combustion engines. We will also see them because they still need it in their industry. And apart from that, we will understand the other things that are on the roads, the trucks and all the other things. And with that in mind, then we will see the need for oil. And why and what is the effect of it on a normal person's life.