Dr. Lay:

You will be pleasantly surprised to receive this e-mail from an Enron 
Employee.

Please note that you are the first and only person in Enron that will know 
about the endeavors that this e-mail discusses.

Background:
In 1986 while I was taking a graduate course in Economics as part of my MBA 
program, I started to think that there exists some similarities between 
Economics and Thermodynamics. In 1988, I discussed my initial thoughts with 
Dr. Ibrahim Oweiss, professor of Economics at Georgetown University and we 
agreed to investigate this topic. Since that time, I worked with Professor 
Oweiss on and off investigating the subject. In the last couple of years, we 
started to make good progress, that was culminated recently by submitting 
three papers for publication (see table below).  


List of Papers
#	Paper Title	Abstract	Status
1	On the Analogies between &Economics8 and &Thermodynamics8	Part I: &Basics8
		This part identifies certain analogies between Economics and Thermodynamics. 
The analogies between &Abilities8 and &Energy8, &Utility8 and &Work8, 
&Capital8 and &Heat8, &Marginal Utility8 and &Pressure8, &Relative Income8 
and &Temperature8, as well as &LABOR EFFORT8 and &Entropy8 are discussed.
		This part concludes that the suggested analogies bring about new approaches 
that will explain some economic complexities by borrowing or building upon 
some  concepts, theories and experiences in Thermodynamics.
		Part II: &Applications8
		This second Part builds upon the basics introduced in Part I where analogies 
between Economics and Thermodynamics have been drawn. In this Part, the 
application of the analogies is utilized to analyze some of the topics 
economists deal with. This Part presents a fresh approach that holds 
promising vehicles that can explain some of the paradoxes economists have 
been facing for years. 	Submitted for publications as a working paper at the 
Department of Economics at Georgetown University. (November 2000)
2	A New Approach to
	&Production Theory8	This paper introduces a fresh approach to the Production Theory.
		Unlike the conventional approach of relating production to Capital and Labor 
along the line suggested by Cobb Douglas, the approach this paper takes is 
relating the production to utility change which in turn is related to changes 
in capital and labor effort. 
		This approach affords more generality and helps in the explanation of some 
paradoxes that the Cobb Douglas theory could not explain. 	Submitted for 
publications in &Economic Theory8, (October 2000)
3	The Capital Engine Concept	This Paper presents a fresh approach that explains 
several observations in economics. 
		The concept is used to discuss some of the trends the economic growth theory 
exhibits.
		It is also used to explain gains in productivity associated with technology 
improvements.
		The Capital Engine concept presented in this paper could serve as a basis for 
new growth theory.	Submitted for publications in &Economic Theory8, October 2000)

     
A fourth paper entitled "Innovation: Why" is under preparation. In this 
paper, we are able to substantiate  based on the concept of  the Capital 
Engine that innovation is the most important driver for economic growth. You 
can see why I chose these two words in the title of the paper from my Enron 
world.

I have been collaborating with Professor Oweiss on my own time and I am 
pleased that we managed to get to this point. Professor Oweiss and I are now 
convinced that we have reached some breakthroughs that could revolutionize 
the study of Economics. We also feel that we can build further on what we 
reached, and even making more valuable contributions.

I am sure that you will be pleased to learn of the above, of course being an 
Economist you shall appreciate it even more.

As I reach this critical stage on our path of this research project,  I would 
like to seek Enron support in two areas:

I.   Patent(s) / Copy Righting:
     I feel that the contributions that are covered in the three papers are 
original and may warrant patenting / copy righting. 
     Since I am the primary author of these papers I wanted to have some 
credit go to Enron.

II.  Grant / Sponsorship:
     I feel that my endeavors which have been purely on my own personal time 
so far, need to be replaced by a more concerted effort now that we have 
reached a  
     critical mass. Towards this end, Dr. Oweiss and myself are taking steps 
to get funding from the National Science Foundation for a joint research 
project that 
     would be carried out through the Georgetown University.
     I do not know of any particular programs within Enron that would afford 
me the opportunity to complete a project like the one we are envisaging.  
     I feel that such a research program will be very valuable.  I am further 
convinced that such program will not be only of an academic value but it will 
have 
     significant impact to the business world.

 I trust that the publicity that Enron being the leading company in 
innovation would get out of the success that I am hoping for  the proposed 
research project will be many folds the amount of money Enron would 
contribute to the proposed effort. 

I would be delighted to send you copies of the three papers and / or make a 
brief presentation on the subject.

I wish to thank you for taking the time to read the above e-mail amid your 
busy schedule. 

Regards,

Hemmat Safwat
General Manager,
Development Engineering
Enron Middle East













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