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It is unfortunately the case that a great deal of the information in circulation about energy resources is not quite correct. This is a serious matter because the thing to be avoided at all costs is a sudden peaking of, for example, global oil and gas production, which could not only lead to economic and political chaos, but even to wars as major consuming countries elect to employ their military assets in order to ensure a satisfactory share of remaining resources. There are also complex economic issues being raised by efforts to deregulate natural gas (and electricity) markets, particularly in Europe. I have therefore attempted in this article to extend discussions of these topics that are found in my book on gas (Banks, 1987), as well as my energy economics textbook (Banks, 2000).

The basic intention of this paper is to present some new economic results pertaining to the world coal market. These results deal principally with the effect of devaluations on production; the effect of ‘volume’ and depletion on the calculation of marginal cost; and price formation in a stock flow market. Observations are also made in the paper concerning the use of combined cycle technology in coal based power plants, and present supply-demand trends in the world coal market, to include the development of (sea) freight rates.

The author commences his analysis of the iron and steel industry by examining the historical background of the industry, and discusses its importance for the world economy. He examines the implications for the world industry of the successful development of the steel industry in Japan, and traces the evolution of a commodity cartel in the iron ore market, analysing the price levels of the commodity in the ‘free’ and ‘controlled’ markets. Following a discussion of the role of energy and coking coal supplies in the industry, the author examines the evolution of this industry in the less developed countries, with particular reference to the role of technology in the industry's development. He concludes that there have been important structural changes in the world industry, embraced by the concept of ‘partial demise’.

Simple flow models are inadequate for understanding short-run price behaviour in non-fuel mineral markets. In this note the author derives a simple model of mineral price behaviour in terms of stocks, and shows how this may successfully explain some short-term features of mineral price behaviour.

This note provides a simple statement about the pricing of primary commodities — and in particular oil and non-fuel minerals. It is contended that inventories must enter the analysis in an explicit manner. The place of expectations is also discussed briefly.

The idea of confronting several hundred managers, politicians, and academics with 20 or so energy experts and celebrities to determine whether supplying the industrial world with energy is fundamentally a matter for the private sector or the state, may seem at first like an affront to common sense. After all, conferences, including those convened under the auspices of distinguished foundations, usually do not have any executive powers; and considering the uneven quality of the presentations, I suspect that the proceedings of this particular assembly will only have a limited readership in those spacious rooms adjoining the corridors of power. However, for reasons discussed below, this conference was a useful exercise. Energy Policy in the Market Economy, arranged by the Institut fur Wirtschafts- und Gesellschaftspolitik, and sponsored by the Konrad-Adenauer-Stiftung, Bonn-Bad Godesberg, Germany, 29–30 May 1979.