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.
 

.