PrefaceAddendum1. The dynamics of innovation and technology in a market economyIntroductionInnovation definedThe rate of growth of technological changeThe dependence of economic growth on technological changeHuman capital and economic growthTreatment of time in economics and the lawProperty rights and innovationGovernment’s ability to advance innovationEconomic models of innovation in the energy sectorOverview of the Texas energy sector innovation experienceWorked example2. The common international energy innovation driversEnergy-intensive economies: Texas and US ranking among leading countriesThe international energy and associated organizations: vehicles for innovationWorld Coal AssociationWorld Petroleum CouncilInternational Renewable Energy Agency (IRENA)Global Wind Energy CouncilInternational Solar Energy SocietyInternational Atomic Energy Agency (IAEA)Other international organizationsCurrent status of the global economy in the sixth Kondratieff cycleGovernmental structure influence on energy sector innovationMeasuring the common factors for driving changeUS companies with strong ties to Texas: spreading innovation throughout the globe3. A game change at SpindletopThe eventThe Spindletop innovationsImpacts of the Spindletop innovations4. From chaos to order in the East Texas FieldThe eventThe East Texas Field induced innovationsThe interplay of policy, markets, and technologyImpacts of the East Texas innovations5. Concessions abroad and the disciplined rule of captureThe eventInnovation US stile and the follow up by OPECThe interplay of policy, markets, and technologyImpacts of the institutional innovations6. West Texas and the Permian Basin early innovationsThe eventThe Permian Basin innovationsThe interplay of policy, markets, and technologyImpacts of the Permian Basin innovations7. Panhandle Field and natural gas flaringThe largest natural gas discovery in the United StatesInterstate pipelinesThe complexity of natural gas regulationNatural gas flaringNatural gas proration and ratable takeIndustrial marketing programs and deregulationThe innovations in the Texas natural gas marketsThe interplay of policy, markets, and technologyImpacts of the natural gas market and institutional innovations8. Upheaval in the energy markets: the Arab Oil Embargoand the Iranian CrisisWhat happenedThe federal responseThe Texas responseInterplay of policy, technology and markets following the energy crisisMeasuring the impacts of entities createdGEAC (1973 commission) inputGEAC (1973 commission) outputGEAC (1975 Texas state agency) inputGEAC (1975 Texas state agency) outputGEAC (1975 Texas state agency) impactTexas Energy Advisory Council (TEAC, 1977 Texas state agency) inputTexas Energy Advisory Council (TEAC, 1977 Texas state agency) outputTexas Energy Advisory Council (TEAC, 1977 Texas state agency) impactTENRAC (1979 Texas State Agency) inputTENRAC (1979 Texas State Agency) outputTENRAC impacts9. Electric industry deregulation and competitive marketsThe contextTexas restructuringThe Texas market structure and operationsPerformanceThe interplay of policy, markets, and technologyImpacts of the restructured electric market innovations10. Hydraulic fracturing: the Permian Basin challenges Organizationof Petroleum Exporting Countries leadershipThe beginningNatural gas from shaleCrude oil from shale and tight sandsInterplay of policy, technology, and marketsImpacts of the fracking innovations11. The oil and gas state adds renewable wind and solarRenewable energy definitionWind energy electric generationSolar energyTransmission capacityReliabilityInterplay of policy, technology, and marketsImpacts of renewables innovation12. Capture and global warming: the technology and regulation debateGlobal warming and CO2 emissionsInterplay of policy, technology, and marketsDirect regulation of CO2 emissions from power plantsHope around short-term impactsConcerns about long-term impacts13. The road ahead: ideas are keyFrom then until nowWhat comes nextThe future dynamics of policy, technology, and marketsA recommendationAppendix A: The principle components of the energy systemAppendix B: Overview of energy market and regulatory structures and US influence abroadAppendix C: Recent developments in energy technology and markets